Nationwide Warns Customers on Spending Habits Ahead of £5,517 Annual Outlay

Nationwide has issued a timely message to its customers as many prepare to part with an average of £5,517 on holiday spending alone in the coming year. Based on a survey of 1,200 consumers, the building society sheds light on how households plan to manage their finances through 2026.

Despite the burden of rising household bills, 41% of respondents remain determined to indulge themselves, focusing on smaller luxuries. However, 27% are postponing significant purchases such as new cars or major home renovations, reflecting a more cautious approach during uncertain times.

The research also found that 15% of consumers are particularly concerned about unexpected expenses, prompting many to tighten their budgets. For example, 31% intend to reduce dining out, and 24% plan to cook at home more frequently to save money. Additionally, 26% expect to spend less on fashion, with 24% opting for second-hand clothing as a cost-saving measure.

Travel emerged as the top spending priority for 2026, with Brits planning to allocate an average of £5,517 annually on long trips and £2,348 on short getaways. This is notably higher than previous predictions, such as easyJet’s 2025 forecast of approximately £3,051 for the main holiday.

Mark Nalder, Service, Operations & Performance Director at Nationwide Building Society, commented: “Many consumers are replacing big-ticket purchases with manageable luxuries to balance enjoyment with financial caution. With continued interest in making up for pandemic restrictions, leisure and travel remain high priorities even as budgets tighten.”

Highlighting the importance of financial management, Nalder added, “Our research shows that 20% of respondents plan to set a monthly budget, while 18% will track spending using banking apps in 2026. We encourage everyone to prioritize saving, and the Nationwide app offers a simple, secure way to manage finances and savings effectively.”