For many Americans, the thought of coming up with money to pay for a vacation can be a bit distressing. It’s expensive enough for individuals, never mind taking a large family. However, there are ways to ease the financial burden and reduce the risk of going into debt for it. You’re taking the vacation to reduce your stress level, not add to it.
Vacations among American families run the gamut as far as cost and overall experience. Still, the average trip comes in at an unsettling $1,578 per person per week. This big expense includes airfare and other travel methods, lodging, dining, activities, and entertainment.
No matter the destination or length of your getaway, a vacation typically requires saving beforehand or putting it on credit. Here are several simple and effective ways to save for a vacation in advance and spend less on it so you can relax more and worry less. Especially while on your trip!
Plan Ahead for Your Vacation
One of the most practical steps you can take to ensure your next vacation is a financial success is to create a plan for where you will go and how much it will cost. Having a vacation plan consists of researching possible destinations that make sense for you and your family, including what there is to do and see there.
Once a location is in mind, search prices of flights, cruises, trains, cars, lodging, restaurants, and any other major expenditure, online. While these costs can change the closer you get to your next big trip, it is helpful to have some concept of what it will cost to get you there when the time comes.
It is also beneficial to know what activities and attractions are available, both free and paid, so you can add these into the total budget for the trip.
For some, that also means budgeting for less of a paycheck when taking time off work, skipping Christmas , or avoiding the busiest travel days of the year.
Use a Dedicated Savings Account for Vacations
With a clear picture of how much your next vacation will cost, consider the benefits of automating savings toward the trip. Some vacationers simply set money aside in their regular savings or checking account and have enough willpower not to touch it until the time comes.
However, it is more realistic to create some separation between everyday funds for emergency savings and travel money. Think about establishing a dedicated high-yield savings account for vacations and set up automatic deposits from your paycheck each month.
This not only makes savings more manageable over time, but it also helps you keep a clear picture of how much money you have set aside and what these funds are to be used for in the future.
Utilize Travel Deals and Other Discounts to Save Money
Every vacation destination has different appeals to individual family members, but some locations have must-see landmarks and activities for just about everyone. Adding several of these high-priority tourist sights to the city you plan to visit can be costly if you aren’t careful.
Consider services like Sightseeing Pass and CityPASS to help ease the out-of-pocket expense for these popular destination to-dos.
With these two, and others, you can save massively on attractions throughout several major cities and places in America and beyond. That includes New York City, Philadelphia, San Francisco, Las Vegas, New Orleans, Miami, Washington DC, Hawaii, London, Disneyland, Disney World, and plenty of others.
Knowing that you can save a significant amount of money on seeing sights and other activities helps reduce the savings you need to set aside each month for the vacation.
Take Advantage of Credit Cards, Rewards
Another smart way to save in advance for your next vacation is utilizing credit card rewards. Many people utilize at least one travel rewards credit card to make the most of their vacation plans, as these cards offer points for purchases related and unrelated to travel. As points accrue, they can be redeemed for airfare, hotel stays, activities, cash back, and more.
While travel credit cards can be helpful before, during, and after a vacation, spending on credit is not suitable for everyone. Be sure to have a plan for paying off balances each month so you aren’t charged excessive interest and be diligent about spending within your means to keep things manageable.
Vacation Financing Options
If you’re short on cash and need to borrow money that will be paid back over time, a loan or payment plan might be a better option for you than a credit card. The interest rate on a credit card will likely be higher than those options. Taking out a personal vacation loan or using a travel payment plan can help break up the cost over time.
While helpful in some instances, there are interest charges and there may be other fees associated with each of these financing options. This can increase the total cost of taking a vacation. Be sure to evaluate all the extra expenses and available lending options before financing a vacation.
Final Thoughts on Saving Money for a Vacation
Taking the time to plan ahead for an annual trip is the smartest step to take in ensuring it is both enjoyable and easy on the bank account. Create a separate savings account to build up a reserve specifically for vacations and start adding money to it.
Then do some research on possible locations as well as the costs for airfare, hotels, and activities well in advance. Check out savings options for attractions and only consider financing if you have a short time frame or a tight budget.
These small steps will help you save money and maximize your vacation without breaking the bank.
