Let’s be honest, 2020 was a bit of a bust when it came to going on vacation. However, now that 2021 is bringing new vaccines, it may be time to once again dream of little toes in the sand. And, dare I say it, begin planning and saving money for a summer family vacation. This could mean picking up where you left off; simply rolling over last year’s booking to a new set of dates. Or, for those not fortunate to get refunds, there is flexibility to start afresh.
This can be both a blessing and a curse. Let’s face it, some of us are in a very different place financially than a year ago, thanks to the economic fallout from the pandemic. If you are one of those families who lost your main source of income (as we did), spending wisely is going to be paramount. You will need to use every money saving tip in the book to make a summer family vacation happen. That means starting now.
Here are some suggestions for how you can begin saving money for a summer vacation for your family.
Set Your Budget
Saving money for a summer vacation doesn’t mean covering the cost of just the hotel and flights. It also means planning for any and all expenses during your trip. At the end of the day, you don’t want to go away for a little R&R, only to come back to the stress of being in debt! Ask yourself whether you will be “eating out” for every meal, or whether you intend to stay in a room or suite with a small kitchenette. Figure out what activities you want to do during your family vacation. Decide whether you will be renting a car, or relying on other forms of transportation?
Having an idea of where you want to go, and what you want your vacation to look like, will help you create a more accurate estimate of what the total cost will be. From there it is easy to work backwards and calculate how much you need to save each month.
Timing
There are going to be times of the year when it is cheaper to travel than others. Unfortunately, there isn’t much wiggle room with summer. But, depending on the region where you live, your child’s school may get out earlier (or start later) than the rest of the country. If that is the case, traveling late May/early June, or late August/early September, will typically offer you the best opportunity for saving money on hotels and flights within the U.S. And, if you want to travel to Europe, try and go as early in the summer as possible. This way you can capitalize on most European children being in school until at least mid-June. Not only will hotels be cheaper, but there will also be less crowds.
Booking Flights
When booking flights, look for less popular times because they are great for saving money. This could mean an early start, or a red-eye. While, on the surface, these types of flights may not seem ideal, they can work with your schedule. For instance, most children get up early, so why not capitalize on that? And, for red-eyes, they offer the benefit of having your child sleep. Plus, it could also help your child get onto a new time zone. The same is true for less popular travel days. Some experts believe it is cheaper to fly on Tuesdays, Wednesdays, or Saturdays, but click around and be flexible with your dates. Moving your travel window by just a couple of days can save a chunk of change.
There are other tricks that I learned when I worked for Travelzoo. For instance, booking flights seven weeks out from your trip is when they are supposedly at their cheapest. Although, I personally like to have flights squared away several months in advance. Whatever you do, don’t book last minute because this is when fares are the highest!
It is also believed that Tuesday’s, around 3 pm ET, is when fares are at their lowest. I haven’t always found this to be true. So, rather than gamble, sign up to receive emails from your favorite carriers. This will allow them to alert you to special sales. My dad has scored some amazing deals on Virgin Atlantic this way! Likewise, many online booking websites offer airfare alerts that ping you when flight prices drop.
Use Your Credit Card Wisely
I can’t tell you how many vacations we’ve taken where we’ve booked some or all of the travel and accommodation components using points. Every year we use our two travel affiliated credit cards for all of our day-to-day purchases. We make our grocery shops, gas station visits, school supplies, and after-school-activity purchases work for us. And we are careful about which card to use for unexpected big expenses – like when our heater broke, or when we needed to replace the mechanism on our garage door. For these expenditures, we prefer to break out our airline credit card so as to get a bigger bang for the buck.
If you are interested in doing something similar, but don’t know where to start, take inspiration from the hotel and airline reward programs that you currently belong to and see what credit cards are available. This way you can watch your existing points grow. And, if you don’t belong to any reward programs, think about the hotel chains and airlines that you like to use and go from there. Need more guidance? NerdWallet recently wrote an article about their recommended travel cards, as of January 2021.
That said, be careful. It is a sad truth that, during financial difficulty, people rely more on their credit cards. It is important to not over extend yourself. Make sure you are paying off your credit card each month. And, if a family vacation is beyond reach, be truthful with yourself.
Bonus Money
If you are lucky to still be employed, take advantage of any bonus checks you receive. There is a reason it is called “bonus” after all. Just don’t double dip by spending the money you’ve allocated for travel elsewhere. I find that it is easiest to plant bonuses in my savings account (where it is out of sight and out of mind), until the money needs to be used. When it is in my checking account, it has a habit of disappearing quickly. The same is true for sales bonuses and tax refunds! Some people even create a separate savings account just for travel.
Monthly Deposits
A couple of years ago I opened a savings account for each of my kids. Every month, $5 is transferred from my account to theirs. It is such a negligible amount in the scheme of things, that I don’t miss it in the sea of other expenses. But you know what? Those accounts have grown significantly. Now that they are aware of this growth, my children are eager to top up their accounts with birthday money from family members.
Much like monthly deposits for your child’s college fund, diverting a small amount of your pay check to a savings account set aside for travel, can be a painless and quick way to finance your next family vacation. It may mean forgoing takeout pizza once in a while, but you’d be surprised at how fast $25-$50 a week can grow.
Adjust as Needed
Monthly deposits are great because they are automatic. But you should also be prepared to adjust the amount when it makes sense. For instance, living in California means my water and electric bills typically go through the roof in the summer months. As such, saving $25-$50 a week for travel is about all we can handle. However, our utilities go down significantly in the winter months, when we dial back on watering our lawn, and switch off the air conditioner. This is the time when we can add a little extra to our savings account. Being flexible really can be a great way of saving money. After all every little bit helps.
Cut Back on Expenses
It goes without saying that, when you are working toward a financial goal, it is important to reevaluate your priorities and cut back on expenses. By this, I don’t just mean reducing or eliminating things like dining out, mani/pedis, or satisfying your Starbucks habit. I’m talking about taking a hard look at your monthly statements to see where you can cut costs. Sometimes, you may be surprised by what you find. For instance, late last year, when I was doing my purge, I found a number of app subscriptions that I don’t even use. Needless to say, those were the first things to go.
For other ideas about saving money for a summer vacation, check out this America Saves article.
Happy Travels!
