The summer holidays are fast approaching. This means that some have already got their holiday money into the account, while for others it is just around the corner.
On average, Norwegians plan to spend NOK 17,650 on this year’s summer holiday. This is an increase from NOK 15,000 last year, according to a survey conducted by Ipsos for DNB.
Nevertheless, this is a low budget compared to the years before the corona pandemic, when the sums were on average NOK 5,000 higher.
– The corona pandemic with closure and restrictions led to Norwegians stepping on the brakes a bit for last year’s holiday plans.
That’s what Silje Sandmæl says. She is a consumer economist at DNB and host of TV 2.
– HOLIDAY MONEY: Consumer economist and program manager Silje Sandmæl says a group wants to turn on the big drum. Photo: Tommy Storhaug / TV 2
–
– This year, on the other hand, it has opened up for trips abroad, which helps us set aside a little more money in the holiday budget.
– Turn on the big drum
In the survey, 1 in 4 answer that they will spend more money on holiday this year, and of these, a quarter answer the reason is that they were not on holiday last year.
At the same time, Norwegians who plan a holiday abroad will spend more money than those who stay in Norway. This helps to pull the cut up.
– Norwegian households are characterized by increased expenses per day, with high food prices and higher interest rates. That may be one of the reasons why we are not back at the 2019 level yet, which was just under 20,000 kroner, says Sandmæl.
– We are still at a sober level, and most likely we have learned some lessons through the pandemic.
Those between 26 and 33 years old are among those who plan to spend the most money on vacation this summer. It is also in this age group where spending increases the most.
According to DNB, they will spend 19,500 kroner.
– It may be that they want to hit the big drum and make up for lost time.
– PRICE INCREASE: Consumer economist Cecilie Tvetenstrand says the price increase is not the same abroad as in Norway. Photo: Frode Sunde / TV 2
–
– Can be tempted by the amount
Cecilie Tvetenstrand is a consumer economist at Storebrand. She says it is easy to be tempted when you check the account and it shows a much larger amount than you are used to.
– It is important to remember that the holiday pay comes in lieu of salary in the month they are paid. These should also cover your fixed expenses.
She refers to rent or mortgages, insurance, electricity and mobile subscriptions, and encourages you to set up a plan for what you want the holiday money to go to.
– Some people are tempted by the amount in the account and treat themselves to more than a lot, and end up with an empty account in the middle of the month.
– If you first start to treat yourself to more little things like takeaway and small purchases here and there, then the account is emptied quickly without you being left with something that has given you pleasure.
Tvetenstrand says that what is left over when fixed expenses are paid, can be used for what you want.
If you have a credit card or other old fun in the form of consumer loans with high interest rates, you should use the opportunity to pay this down first.
Expert advice: – Use the holiday money on holiday
–
– Can be expensive
In recent months, prices of goods have become more expensive, and at the same time mortgage rates will continue to rise. Thus, this year is not the autumn you want to start in the red, Tvetenstrand believes.
– See therefore what you have that can be used on holiday, and set up a holiday budget. This is how you avoid swiping your credit card and spending more money than you have.
She also encourages those with mortgages to familiarize themselves with what it will cost with higher interest rates.
– If you run out of account every month today, it makes sense to change your consumption already now and set aside some of the holiday money in a buffer account.
– If you are going to travel, it is good to remember that even though prices have increased here at home, they have increased even more abroad. Remember to pay in local currency when you pay in a shop or restaurant, and check that you have a valid passport.
The consumer economist also asks people to familiarize themselves with corona passport rules and check if the insurance is valid.
– Many people canceled their travel insurance during the pandemic. If something should happen to you, it can be very expensive if you do not have travel insurance.
–
