Preparing for Life Events

Vacation Budgeting

Americans planned to take four summer trips in 2005. On their longest trip, they plan to spend an average of $1,000, according to a TIA survey. – Travel Industry Association Everyone needs a break now and then. But when your vacation leaves you with a stack of bills you can’t pay, it’s hardly relaxing! Next time plan a vacation that will leave you with good memories instead of debt. Use our roadmap to plan a vacation that won’t break the budget.

What do you really want?

First, decide what kind of vacation do you really want? Do you want to sightsee as much as possible? Or would a few days of doing as little as possible be more appealing? Take the time to really think about this, or you’ll end up with a vacation you don’t really enjoy. If you have a family, ask them for input and work ahead of time to find a way so that everyone gets at least a little of what they want.

Plan For Savings:

Plan in advance so you’ll have time to save money for your trip. The better you plan your budget, the better your vacation. You’ll find our vacation planning worksheet at the end of this guide. Use it to help you develop your vacation spending plan.

If you have kids, make sure they have an opportunity to participate in the planning. Together, you can research destinations and costs. You can set target goals for the amount you’d like to spend per day, for certain activities as well as your whole trip.

Kids may help look for discount coupons, Internet specials, or even in weighing the costs of one type of outing over another. Once you have a clear idea of what you plan to spend, start a vacation savings fund and set aside a certain amount each month or each paycheck. Even a small amount can go a long way if you plan carefully.

Membership clubs like AAA, Costco Travel Club and Sam’s Travel Club can often save you money on hotel stays, car rentals and complete vacations. The membership fee for one of these clubs is usually offset by the savings you’ll achieve.

Consider off-peak travel if possible. Go to a popular winter destination in the summer, or vice versa. If your schedule allows it, avoid traveling during school breaks or holidays. Not only will you likely save money, but your destination will be less crowded and you’ll likely get better service and accommodations.

According to the Travel Industry Association of America shopping is the most popular domestic trip activity, and is included in 30 percent of all domestic trips. In total, that’s 342 million trips with shopping sprees. If shopping is your idea of recreation, create a separate shopping budget and research the types of stores and items you’re hoping to find ahead of time. Otherwise your “bargains” may end up being very expensive once you figure in the other costs of your trip.