Planning a Family Vacation

More than 60% of adults are hoping to take a vacation this year, according to a 2023 Bankrate survey, but of those adults, 80% are making adjustments to their plans due to rising costs. Making adjustments to your family vacation doesn’t have to mean sacrificing on traveling, and it doesn’t have to drain your bank account, either. We’ve put together some tips and tricks to help you plan for your family vacation, because no one wants to stress about money while traveling.

Planning Vacations: Start Budgeting

Ideally, the earlier you can start planning vacation, the better. It will give you ample time to save up and figure out what your expenses will be. Even if you’re making plans closer to your vacation, you can still make a budget and ensure you can afford your family’s trip.

Add up all the expenses that will come with traveling: air fare, gas, rental cars, hotels, souvenirs, tips, activities, food, lodging for pets…all of it goes on the budget. When it comes to budgeting, we recommend over-estimating versus underestimating costs. This’ll give you a buffer for extra money when traveling. We suggest rounding up your expenses to ensure you’ll have enough.

Looking for inspiration? This travel blogger and mom has great advice on how to budget for family vacations, including initial estimates and detailed budget printouts you can use for your family.

How to Save Money When Traveling

How do you get the most out of traveling without breaking the bank? In the same survey, Bankrate identified the top ways people are budgeting while planning vacations:

• Choosing more budget-friendly destinations or hotels
• Planning less expensive activities
• Driving instead of flying
• Shortening trip times

Watching your spending on travel and accommodations is a good way to save when you travel, and choosing cheaper activities can make a major difference in savings. Finding free or low-budget activities, like going to parks or museums, can be a great way to get to know the area without overspending. When looking for places to stay, home rental options or budget-friendly hotels can be a big cost saver compared to larger hotels and resorts.

In addition, choosing when to travel can be just as important for saving money as choosing where you’ll go. Sometimes, going to destinations during their “off season” can lower the costs significantly. It’ll also mean fewer tourists and less crowded areas.

Another thing to look out for is restaurants. These can be one of the biggest drains on a budget when traveling. Instead of eating out for every meal, try picking up some groceries you can keep in your hotel room or rental kitchen. You can pick up cereal and milk for breakfast, sandwich fixings for quick lunches, or granola bars for on-the-go snacks. If you’re staying at a home rental, you can even plan to cook a few meals at home to save money.

The Do’s and Don’ts of Paying for Your Vacation

Ready to hit the road? Here are some quick tips for saving money, staying within budget, and avoiding debt while traveling with your family.

• DO shop for hotels and flights on a Tuesday. Tuesdays, specifically Tuesdays at 3 p.m. Eastern time, is when most airline flights go on sale. Shopping midweek for hotels and rentals can also help you save money.
• DON’T check your bags. If you can, avoid checking your bags for a flight. One suitcase can cost between $25 and $75 to check, and that can add up quickly with a family. Pack as light as you can to keep everything in a carry-on so you can avoid this fee.
• DO look for kid-friendly options. Some hotels, restaurants, or activities will offer discount packages for kids or families. If you’re traveling with children, especially younger children, keep an eye out for these bargains. And if your kids are older? Some activities offer student discounts, so look out for those too.
• DON’T forget about coupons. Living Social, Groupon, and other sites can offer great deals on local activities, restaurants, and more. Browse sites like these often, both before and during your trip, to check for deals your family can use.
• DO take advantage of points. Several credit cards offer points for flights, hotel bookings, or other travel expenses you can use toward your vacation. If you go this route, we suggest budgeting for the cash amount you’ll need, using your credit card to make the purchase, and paying off the purchase in cash right after you make it.
• DON’T rely on your credit card. With that being said, don’t put everything on your card when traveling. The allure of using a credit card is the fast cash you’ll get without the immediate need to pay it back, but the key word there is immediate need—you’ll need to pay for it eventually.
• DO go over your expenses after the trip. Compare your actual expenses to your set budget and see how you did staying within your goal. This can help you in planning vacations in the future. For example, if you went over budget with activities but stayed under budget with restaurants, you’ll know to budget less for restaurants next vacation so that extra money can go to activities.

Looking for more budgeting advice? Reach out to one of our financial advisors for a complimentary portfolio review.