Half of Greeks are cancelling or postponing holidays because of financial pressures as summer spending rises and savings shrink, according to fintech app Plum.

The findings are based on a nationwide survey conducted by Plum in collaboration with Palmos Analysis that sheds light on how the summer season affects the financial habits of Greeks.

Plum, which has a presence in Cyprus and Greece, said the summer period, while associated with carefree holidays and sunny getaways, often results in increased expenses and a seasonal pause in financial planning.

The research found that 28 per cent of respondents do not budget or save in advance for their holidays.

Only 13 per cent start planning more than six months before, while residents of northern Greece and the islands are the least likely to prepare financially, with up to one in three saying they do not plan ahead.

Even when a budget is in place, sticking to it is not guaranteed. Just 26 per cent manage to stay within limits, 25 per cent exceed their budget, and 22 per cent have only a vague sense of their spending boundaries.

Men are more likely to overspend, with 28 per cent going over budget compared to 22 per cent of women.

The age group most consistent in staying within their holiday budgets are those aged 45 to 54 at 34 per cent, while those aged 25 to 34 are the most likely to exceed their set budgets.

“Our data show that not only do many people fail to plan their holiday budgets in advance, but they also often lose control of their spending during the summer,” said Marily Mitropoulou, Country Marketing Manager of Plum in Greece.

The survey also found that half of respondents have postponed or cancelled summer holidays for financial reasons, with almost one in three doing so more than once.

When unexpected expenses arise during the summer, most people turn to their emergency fund if they have one.

Forty-two per cent use their savings, 32 per cent cut spending in other areas, 18 per cent seek help from family or friends, and 16 per cent rely on credit cards or loans.

“It is important to strengthen your financial resilience by setting aside enough money for unexpected events,” Mitropoulou said.

She added that using credit can often prove costly, and repayments usually take longer than anticipated.