Stories | March 29, 2018

Keep an eye on your finances at Easter

Seasonal holidays can highlight how we spend, earn and invest.

Even if you do not celebrate Easter, you may be enjoying some time off – and, unsurprisingly, a temptation to spend can arise. Easter time in the northern hemisphere coincides with early spring, which means better weather, often accompanied by a rising sense of hope for a good summer.

It also often comes shortly after we put the clocks forward an hour for Daylight Saving – which means we have been rising earlier and as a result may feel more tired than usual.

Sleepy in the mornings?
When we’re tired, it can pay to take more care. This is true whether we’re driving, juggling responsibilities at work, or trying to decide on the best future course for our finances. This eZonomics article looks at the effects of having less sleep and how it can affect your earnings – particularly if you’re naturally a night owl.

Specifically, the Daylight Saving Anomaly theory suggests that this exhaustion might even carry through to share markets. One paper even claims that market falls, on average, can be 200% to 500% bigger over the weekend when clocks go forward than on other Friday to Monday periods during the year.

Revise for the road ahead?
And if you’re a student with tests coming up, some say how you spend your Easter break can be critical. In fact Barnaby Lenon, of the UK’s Independent School Council, claims that the best exam results typically go to those who choose to spend their Easter holiday revising.

It almost goes without saying that good exam results can mean better final grades, which in turn can boost the chance of a higher income in years ahead.

We all tend to need a little extra motivation from time to time. Give it a try: maybe a spring-clean of your budget can help you hit your money goal.

Why not make a fresh start?
In fact, Easter is one of the key annual dates that can be put to work for you, enabling what is known as the fresh-start effect. A resolution made at a special date like Easter – just like at New Year, or on your birthday – can function as a boost to willpower, helping you make a fresh start.

We all tend to need a little extra motivation from time to time. Give it a try: maybe a spring-clean of your budget can help you reach more than one short, medium or long term money goal.

Selling (or buying) a home?
When the weather warms up is typically the best time of year to sell a house, according to a paper from the London School of Economics and Political Science, discussed in this article. In the UK, the number of sales rose 108% in spring and summer – and house prices achieved were eight percent higher too.

It follows, therefore, that if you’re considering a move, it might be better to wait until autumn or even winter before beginning your search.

Do you spend more at Easter?
On the holiday itself, there’s sometimes a Sunday lunch or family get-together, or a traditional Easter egg hunt (not just for children). In the urge to celebrate and be generous to others, many of us probably buy more than we need.

This closely resembles the spending that happens in many countries at Christmas time – often seen as an investment in relationships. Meanwhile those ever-present chocolate eggs and hot-cross buns are now on the shelves in shops for weeks or months to encourage you to, er, “shell out”.

Are you curious about who eats the most chocolate in a year? It’s the Swiss – click here for the amount.

eZonomics team
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SpendingHouse pricesHolidays

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