Yes! Take that Family Trip! Here’s How to Save For Your Vacation

You’re ready to start planning a family vacation, but is your wallet?

Rising inflation and increased travel demand have contributed to eye-popping prices on flights, hotels, meals & more. You may be left wondering how you can save enough money to take a trip or how to start a vacation fund without breaking the bank. I’m here to help!

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According to a recent study by Expedia , 81% of American families say they would like to take a vacation this year. However, only 46% say they actually will because of the high cost. On average, respondents said they plan to spend an average of $3797 on vacation, up from $2352 last year.

There are a number of ways to save for vacation, but it may not be as difficult as you think. Here are a few tips on how to start a vacation fund:

How to Start a Vacation Fund

Saving for a vacation gives you the freedom to spend without worry and can help you avoid going into debt to pay for your trip. Here are a few ideas on how to start a travel fund:

Determine how much you need to save

This will depend on the cost of your chosen vacation destination, the time of year you plan to travel, and the length of your stay. Once you have a general idea of how much you need to save, you can start setting up your vacation fund.

Set up a dedicated savings account

If you don’t already have one, set up a dedicated savings account that is separate from your checking account. This will help you keep track of your progress and make it less tempting to spend the money on other things.

Set up automatic transfers

One of the best ways to save for vacation is to set up automatic transfers from your checking account to your vacation fund account. This will help you make sure that you are consistently saving and that the money is there when you’re ready to book your trip.

How to Save Money For Vacation

Cut back on expenses

If you’re looking to save even more money, you can cut back on some of your everyday expenses. This could include things like eating out less, cutting cable, or reducing your grocery budget.

We cut back on going out to eat as a family and saved $75-100 every time we did this. I also quit buying sodas and saved $20-30 per month. These small changes can really add up and give you more money to put towards your vacation fund.

Make extra money

If you have some extra time, you can make some extra money to put towards your vacation fund. There are a number of ways to do this, including taking on freelance work, start a dog walking business, working overtime, or selling items you no longer need.

I started a side business selling vintage glassware I found at Goodwill on Etsy. I was able to make a decent amount of money to put towards my vacation fund. Note: Use my referral link to open your own shop and get 40 free listings.

Use credit card points or miles

If you have a credit card with rewards, you can use your points or miles to help pay for your vacation. This can be a great way to save money, but just be sure to pay off your credit card balance in full so you don’t end up paying interest on your vacation expenses.

I use a free online service called Travel Freely to keep track of my credit card reward programs, maximize bonus mile promotions, and even find the best balance transfer credit cards to provide the best interest rate(s) and reward benefits.

Make Kids Save For Their “Wants”

That’s right! Even the kids can help save. I ask my children to take $1 to $2 a week from their allowances and put it in their own travel fund. Since we take little vacations throughout the year, this means that they each have about $20 or so to spend during any one vacation. This money is their “play money” while on vacation.

My husband and I pay for all of the “needs” while on vacation; lodging, food, entertainment, etc. They are responsible for their “wants” while on vacation. That means souvenirs, candy, etc. It is amazing at how much less they want when the money comes from their own pockets.

Create a Travel Fund Jar

Having a dedicated savings account is great, but you can also save but I’ve found it helpful to also have a physical vacation fund jar in a visible place in our home. We put money into as a family, empty out our change at the end of each day, and every so often put cash in after making the decisino to spend less in other areas.

Having a physical vacation fund also helps to get everyone excited about the vacation as we watch it grow. The kids love to see how much money is in the jar and what our vacation experiences could be with the money.

This Star Wars Storm Trooper Piggy bank was what we have used for years. I like to call it Geek Chic and a reminder of the fun we had at Disey World where we bought it.

Spend Less and Travel More 

Make traveling as a family a priority this year. Commit to spend more quality time together and experiencing more as a family. Instead of giving tangible gifts, give family experiences instead. Instead of a birthday party, head out to an amusement park, concert, or a weekend camping trip. Make the emphasis on doing more together instead of “stuff” and you’d be surprised on how much money you could save and the places you’ll be able to go.

Vacation Loan

If you absolutely can’t seem to save enough money, consider taking out a vacation loan. I know that may not sound like the best idea, but if it’s something that would help your family travel more, then it may be worth considering. Just be sure to do your research and only borrow what you can afford to pay back.

In conclusion, saving for a vacation can be easy without making too many sacrifices. These are some of the ways my family and I are creating a travel fund and I know these tips can help you too!

If you need help with creating a budget, please see my article on “How to create a travel budget” that includes worksheets and practical help. Then sit down and figure out how much you want to put aside each week, each month, etc. After that, just get started! You will create an easy family travel fund in no time. You’re going to have a great time vacationing together this year on a budget!