With many workers in the Netherlands receiving their holiday pay this month, it’s time to decide how to spend the money. According to a survey, 42 percent of Dutch residents use the allowance to go on vacation, while the rest use it for a variety of other things, from savings to making big purchases.
How do people in the Netherlands use their holiday allowance?
A survey conducted among more than 20.000 consumers in the Netherlands revealed that 42 percent of people in the Netherlands use their holiday allowance (vakantiegeld) to pay for their vacations, reports NOS. One in three people use the money to bulk up their savings, while some residents use it to pay off debts.
The holiday allowance is at least 8 percent of an employee’s gross annual salary, and with the rising costs of living, many consumers are more cautious about spending this amount of money. Pointing out that consumer confidence is on the decline, ING economist Marten van Garderen is not surprised by this. "People are actually less willing to spend their money."
Even though Dutch residents are becoming more frugal with their spending, various companies and online stores are offering holiday pay deals in May by offering discounts on big-ticket items such as washing machines and vacuum cleaners, in an effort to entice customers to spend their money.
Clothing stores, retail chains and supermarkets are also trying to capitalise on the fact that many people in the Netherlands have a lump sum burning a hole in their pockets by running sales and discount campaigns.
While some will certainly make use of the deals, Karin Radstaak of the National Institute for Budget Information (Nibud) urges residents to make informed decisions. "Think carefully about what you can and want to do with your holiday pay," she told NOS. Putting the money aside for the chosen purpose is also a good idea. "Otherwise it ends up in a big pile and before you know it, you have done the shopping with it."