Nationwide Building Society has issued a stark financial snapshot for the year ahead, revealing that British consumers are prioritising holidays and 'manageable luxuries' even as they cut back in other areas due to ongoing economic pressures.
Travel Tops Spending Priorities Despite Squeeze
The building society's study of 1,200 customers found that leisure travel remains the foremost expenditure for many. On average, Britons intend to allocate £5,517 for long trips and a further £2,348 on shorter breaks in 2026. This represents a significant planned outlay, especially when compared to easyJet's 2025 prediction that Brits would spend around £3,051.90 on their main holiday.
Mark Nalder, Service, Operations & Performance Director at Nationwide, commented on the trend. "Undoubtedly, some consumers are putting off bigger purchases and replacing them with manageable luxuries due to financial worries or constraints," he said. "Many consumers still value making up for lost time since the pandemic, so leisure and travel remain high on peoples’ priority lists, even if budgets are squeezed."
A Nation of Cautious Treaters and Savers
The research, released on 9 January 2026, paints a picture of a nation balancing enjoyment with financial caution. While a determined 41% of consumers plan to treat themselves this year, a significant 27% are postponing major purchases like new cars or large home renovations.
Practical money-saving measures are being widely adopted. The data shows that:
- 31% of people intend to reduce spending on eating out.
- 24% will cook at home more frequently to save money.
- 26% plan to spend less on fashion and clothing.
- 24% are looking to buy more second-hand items.
Furthermore, 15% of respondents expressed worry about unexpected expenses, highlighting underlying financial anxieties.
Embracing Budgeting Tools for 2026
In response to these pressures, many are turning to formal budgeting strategies. Nationwide's survey found that one in five (20%) plan to set a strict monthly budget, while 18% will use a banking app to track their spending throughout the year.
Mark Nalder emphasised the role of tools like the Nationwide app in helping customers navigate their finances. "Saving should also be a big priority for our customers, and the Nationwide app is a simple, easy, convenient and secure way to manage your current and savings accounts in one place," he advised.
The overall picture from the research is one of pragmatic adaptation. As Nalder concluded, "There is a degree of practicality to this as it balances enjoyment with caution." Britons are fiercely protecting their holiday budgets while seeking smarter ways to save on everyday living, using digital tools to maintain control over their finances in an uncertain climate.
