herald

Wednesday 23 August 2017

As temperatures soared, so did our impulse spending

Marta Lopez from Santry and Jessica Garcia from Valentia in Spain on Dollymount Strand. Photo: Frank McGrath
Marta Lopez from Santry and Jessica Garcia from Valentia in Spain on Dollymount Strand. Photo: Frank McGrath

IT seems that we like to save for a sunny day. The recent heatwave saw us dipping into savings to fund outings, summer clothes and barbecues.

More than one third of consumers (36pc) reported an increase in their spending following the recent spell of hot weather, new research shows.

This was particularly marked in the 25-34 age group, while nearly half of adults with young children also spent more.

More than one third (39pc) dipped into their savings to cover the cost of unplanned summer activities.

Day trips and outings proved the most popular unplanned expense for 72pc of people who took advantage of the sunshine.

A further 50pc increased their spending to host and attend summer barbecues.

Unplanned spending on day trips, summer wardrobes and barbecues was noticeably higher among the under-35s.

The research showed that the hot weather spurred many people on to do up their garden.

Almost one third (30pc) of respondents with unplanned spending decked out their gardens with new furniture, plants or equipment, rising to 36pc among the over-35s, while a further 17pc tackled DIY and home improvements.

Dara Deering, executive director and head of retail banking at KBC Bank Ireland, said: "The latest KBC Savings Barometer shows that Irish people, especially families with children, enjoy being active and getting out and about in the good weather.

"Saving for a rainy day turned into saving for a sunny day during the last quarter, which made for a welcome change in Ireland," he said.

The KBC Savings Barometer shows that almost eight in 10 Irish people have a savings account, with men even more likely this quarter to have a savings account than during the previous quarter – up from 81pc to 83pc versus a static 75pc of women.

For those with the savings habit, the average monthly saving continued to improve, with the figure highest among ABC1s at an average of €278 per month.

The average monthly saving total was €223, rising to €250 for men, but remaining lower for women at €193 per month.

The barometer indicates that people save for a number of reasons, with more than one third (34pc) citing a combination of holidays, house, car and retirement as their main motivators.

Meanwhile, the heatwave may be over, but temperatures remain warm at the moment – although the trend for early next week will see them dip below normal.

Met Eireann said that top temperatures today would range between 18C and 19C, but could reach 22C, although there were set to be scattered patches of light rain and drizzle.

It said it will be close and humid through tonight and Thursday, with some heavy rain at times and occasional dry spells.

Met Eireann said it would be fresher on Friday.

fdillon@herald.ie

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