New research from TravelInsurance.com.au reveals that one in five Australians (20%) have taken financial risks, including dipping into savings or borrowing money to afford a holiday.
Among them, one in 10 Aussies (10%) have dipped into their emergency fund to book a trip abroad. A further 6% have delayed paying bills to make a holiday happen, while 4% have borrowed money from the Bank of Mum and Dad.
Fortunately, no one reported borrowing from friends or colleagues.
TravelInsurance.com.au CEO, Shaun McGowan, says holidays shouldn’t come at the cost of financial security.
"With the cost of flights, accommodation and insurance going up, it’s getting harder for people to put money aside for holidays. However, if you have to borrow money or dip into your emergency savings to book an overseas trip, ask yourself if you can really afford it in the first place,” he says.
"Don’t stretch yourself financially for a holiday, it can have ripple effects on your financial security. You might miss bill payments or come home and end up relying on credit card debt just to catch up.”
Fortunately, the survey found that the majority of Australians (57%) only travel when they can comfortably afford it, while 23% say they never dip into their savings for holidays.
Gen Z are the most likely to put their finances on the line for a holiday, with nearly one in three (32%) admitting to actions like dipping into their emergency fund, delaying bill payments or borrowing money.
Millennials followed closely at 31%, while Gen X are far less likely at 18% and only 8% of Baby Boomers reported doing the same.
