The case in summary: Almost half of us will use our holiday money on holiday this year, according to a survey carried out by Ipsos for DNB. Economist Fredrikke Gregorson warns against spending holiday money on impulse and recommends thinking through what you actually want to spend the money on. Consumer economist Derya Incerdursun at Nordea recommends paying off small loans and expensive debts, filling up the buffer account, saving in funds, and donating money to charities. For those under 34, it is also recommended to prioritize housing savings for young people (BSU). If you want to use your holiday money on holiday, the tip is to plan well and set up a holiday budget. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. Almost half, 45 per cent, of us will use our holiday money on holiday this year. This is revealed in a recent survey carried out by Ipsos for DNB. When 20-year-old Anna Reistad received holiday money for the first time last year, she used part of it on a trip to Prague. But this year, all the holiday money will go towards a deposit when she moves to Trondheim in the autumn. – That’s three times the rent plus July, a month I won’t be living there. So then I need extra money before I get a student loan. – Holiday money is extra money that you don’t quite expect to get. Or, you expect it, but it will be extra money, so it’s okay to just put it off, says Anna Reistad. Photo: Jenny Marie Sveen / news She admits that she is itching to spend the money on completely different things. – But I know that I would have regretted it if I had just wasted the money, when I had to pay a deposit anyway. Read what other good advice consumer economists have for you, if you do like Anna and don’t burn through all the money on holiday. What is holiday pay? Holiday pay is a type of salary that you receive instead of regular salary when you take a holiday. They are hired the year before, and you usually get the holiday money in June. Holiday pay is an important financial security for employees, because it ensures that you can take the holiday you are entitled to without experiencing financial losses. Don’t feel rich First of all: it’s easy to feel like you have a lot of money when the holiday money arrives. Savings economist at Storebrand, Fredrikke Gregorson, warns against precisely this, and spending the money on impulse. – I recommend thinking through what you actually want to spend the money on. What gives you the most joy and value, now and in the future? Then one will perhaps see that it is wise to save some of that money, she says. Savings economist Fredrikke Gregorson in Storebrand. Photo: Jan Tore Eriksen – Having money in your back can give you peace of mind and security that should not be underestimated. And if you invest the money, it will be able to grow to give you much more in a few years. Pay off small loans and expensive debt Credit card debt, consumer loans or other expensive debt is a good idea to get rid of as quickly as possible. Here, the interest rates are often high, and small amounts can quickly become large. Therefore, paying off such loans should be high on the priority list. If you’re going on holiday, it can be safe to pay for the trip with a credit card, but don’t spend the whole holiday on credit. It can quickly cost more than it tastes. Photo: Gorm Kallestad / NTB – If you have expensive debt, this can be a good opportunity to get rid of it first, says consumer economist Derya Incerdursun at Nordea. – If you pay, for example, NOK 5,000 a month on expensive debt, this sum can easily be moved to savings or something else after the debt has been paid off. What are you going to spend your holiday money on🏝️💰 Holiday, of course!☀️🏝️ It will save me 💰🤑 Holiday money? I don’t get that.. Show result Top up the buffer The holiday money can also be a good opportunity to top up the buffer account. – If you don’t have expensive debt, it might be smart to start saving up a buffer or top up the one you already have for unexpected expenses, says Incerdursun. Consumer economist Derya Incerdursun at Nordea. Photo: Øystein Løwer How much one should have in a buffer account should be adapted to the individual’s life situation and finances. A rule of thumb is to have a buffer account equal to three months’ salary, but that does not suit everyone. – One should first look at one’s fixed monthly expenses such as housing, food, transport and insurance. In addition, one should consider possible unexpected expenses that may arise, says the consumer economist. In addition, the work situation, personal circumstances such as parental responsibility and health challenges come into play. – For example, someone with an uncertain income, high fixed expenses and older assets should have a larger buffer account than someone with a stable job, low expenses and good insurance, says Incerdursun. Fill up BSU If you are under 34, you should also prioritize housing savings for young people (BSU). It is a savings scheme that is particularly beneficial for young adults who are saving to buy a home. The money that is saved in this type of account can be used as equity when you are going to buy your first home. – This is risk-free savings, you get the best interest rate for the bank and tax deductions, says savings economist Gregorson at Storebrand. During one year, you can deposit a maximum of NOK 27,500 at BSU. For everything you put in during one year, you get a 10 percent tax deduction. Save in funds If you have a long time horizon, saving in funds can be both wise and profitable. – The first thing you should do is assess your own risk tolerance and investment horizon, says Nordea’s Incerdursun. For a long-term perspective, mutual funds can be a good alternative, she says. – This form of savings can give a good return over time if you have a savings horizon of at least five years and are willing to take a certain risk. If you want to be more careful, you can consider fixed income funds, bonds or high-interest accounts. If, on the other hand, your goal is next year’s holiday, then you should invest in alternatives with lower risk. – Then a savings account is the best option, believes Gregorson at Storebrand. Give money to charitable organizations If you want to spend some of your holiday money on charity, you should seek information about those you want to support, according to consumer economists. – Look for who has good financial management and who reports on how their funds are used, says Incerdursun. You can get a tax deduction if you support charitable organisations. Photo: Gorm Kallestad / NTB – Think about what is important and right for you to support, whether it is the local sports team or a non-profit organization – or perhaps both, says Bjørn Waarner, bank manager at DNB in Lillehammer. Did you know that you can get a tax deduction on gifts to charity too? Go to the website of the tax authority to see if the organization you want to support is on the list of organizations that give tax deductions. Enjoy! After all, holiday money is called holiday money. It is important to bear in mind that this is actually a burnt good that you have saved up throughout the year. The vast majority of us will use our holiday money on holiday. Then you should plan well, according to consumer economists. Photo: Petter Strøm / news If you want to use your holiday money on holiday, the tip is to plan well, so that you get the most out of the money. – Here, for example, you can set up a holiday budget with, among other things, costs for travel, accommodation, food and activities. It may also be a good idea to set aside a little extra for unexpected expenses on holiday as well, says Incerdursun. A holiday budget is also something Waarner at DNB recommends. – Don’t let the holiday money burn in your pocket. Get an overview of the expenses and what the holiday will cost. My advice is not to leave all the money in a checking account. If you are going abroad, you should consider that you get less for the Norwegian krone now than you did before. Photo: JEAN-SEBASTIEN EVRARD / AFP And if you are going to travel abroad, there is one more thing you should think about: – Then it is important to consider that prices have risen. In many places you now get less for the Norwegian krone than before, says Waarner. – There is also security in paying for the trip with a credit card, but not spending the whole holiday on credit. It can quickly cost more than it tastes like, says Waarner. Published 21.06.2024, at 17.04
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How we use the holiday money – tips and advice – news Innlandet – Local news, TV and radio
