Seven in 10 Lithuanians overspend in summer: Where does the money go?

A significant majority of Lithuanians, seven out of ten, find themselves exceeding their planned budgets during the summer months, with expenses often spiraling on travel, holidays, and seasonal entertainment. This annual trend highlights a common struggle with financial planning as the warmer season approaches.

Travel and vacations are the most frequent culprits, with approximately 43% of respondents admitting to spending more than anticipated on these activities. Entertainment, such as dining out or attending concerts, accounts for overspending by one in four individuals. Additionally, one-fifth of Lithuanians spend more on home or garden improvements, while 14% exceed their budgets for celebrations like weddings and christenings. About 9% overspend on children's camps and activities.

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Holidays, children's activities, celebrations, or home improvements are not entirely unexpected expenses – they recur annually. It's important not to forget that after summer, regular financial obligations return – school, extracurriculars, heating, and other autumn expenses.

Julius Ivaška, Director of Business Services at Urbo Bank, advises planning summer expenses as a distinct part of the annual budget. He emphasizes differentiating between essential and discretionary spending and maintaining a reserve fund. "Holidays, children's activities, celebrations, or home improvements are not entirely unexpected expenses – they recur annually," Ivaška noted. "It's important not to forget that after summer, regular financial obligations return – school, extracurriculars, heating, and other autumn expenses."

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Younger people's summer expenses are more often related to spontaneous decisions and entertainment, while older individuals' cases require more money for homes, gardens, or other seasonal work.

Spending patterns vary by age. Younger Lithuanians (18-25) are more prone to overspending on entertainment (36%) and celebrations (27%). In contrast, those aged 46 and older tend to spend more on improving their homes or gardens (around 22-24%). Notably, individuals aged 56 and older are the least likely to exceed their budgets, with 38% reporting sticking to their plans.

Interestingly, higher income does not necessarily correlate with better financial discipline. Individuals with higher earnings are more likely to overspend on travel and entertainment. The survey indicates that those with household incomes of 1,000–1,500 euros per person are most likely to exceed their travel budgets (57%). Conversely, this figure is around 33-35% for households with incomes up to 700 euros per person. Ivaška suggests that increased financial freedom can lead to more spontaneous decisions, but ultimately, budgeting success depends on accurately assessing future expenses and one's financial capabilities.

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Summer budget is often unbalanced by greater financial freedom, when a person can afford more – it is easier to agree to a trip, a spontaneous dinner or a more expensive event. Nevertheless, a total of only 28% of respondents said they spend as much in the summer as they planned. This shows that the budget is determined not only by income or age, but by how well we can assess real future expenses and our financial capabilities.