Summertime is here, and while the livin' may be easy, it's also more expensive than ever.
With the average cost of a vacation rising 26% in the past year, according to a Bankrate survey, planning a cost-effective summer getaway requires extra attention and forethought. In our latest episode of Bucks and Trucks, we, Christian Conner and Collin Gimlin, share our personal experiences and practical tips to help you save money while you create unforgettable family memories.
Your summer vacation is a personal experience. Don’t compare yourself to friends and other people on your social media feeds to pursue an “ideal” vacation that might not be financially feasible, or even much fun. How you save and pay for your vacation depends on your own financial situation. If you’re spending all your income on living expenses, it might be wise to cut down on non-essential expenses like eating out or entertainment. Or, maybe you cancel a subscription and put that money toward the trip. On the other hand, if you’re already saving aggressively and your financial goals are on track, reallocating some of your savings for vacations is perfectly fine
It’s also wise to start saving early. For families who travel multiple times a year, setting up a recurring monthly savings can ensure that funds are always available for trips. For those who prefer to travel on credit, using rewards credit cards can be beneficial, but it’s crucial to have the money ready to pay off the balance immediately to avoid debt.
Which leads to a very important part of vacation prep: establish a clear budget and stick to it. This can alleviate the financial shock of vacation expenses, make the trip more enjoyable, and avoid financial strain.
One of the first decisions you need to make is whether to fly or drive to your vacation destination. Narrowing down your geographic region can help you make a more informed decision. For example, driving can often be more cost-effective, especially if you have a large family. In Collin’s case, driving with his wife to Florida has saved at least $1,000 to $1,500 compared to flying. Remember, airfare isn’t the only consideration; you need to factor in car rentals or cab rides if you fly.
If traveling far isn’t feasible, consider a staycation or visiting local attractions. Exploring your city can be a surprisingly fun and cost-effective alternative. Museums, parks, and local events can provide a vacation feel without the travel expenses.
One of the biggest mistakes families make is poor planning. Whether it’s underestimating costs or not booking necessary passes in advance, lack of preparation can lead to unexpected expenses. For example, many popular national parks now require advance passes, and failing to secure these can disrupt your trip and add to your costs.
Another mistake is not considering travel insurance, especially for older travelers or those with health concerns. Insurance can protect you from losing your investment in case you need to cancel your trip last minute due to unforeseen circumstances.
As you can see, a lot of financial strategy goes into traveling. But what about when you actually get where you’re going? Lodgings present another opportunity to stretch your vacation dollars. For instance, many rentals on platforms like Airbnb and VRBO are managed by companies that also list properties directly on their own websites, often at lower prices. By contacting these companies directly, you can save significant amounts and even enjoy extra perks.
A successful vacation is one where everyone has a good time. Involving all family members in the process ensures that the trip includes activities everyone will enjoy. Whether it’s dad’s 18 holes of golf or the kids’ putt-putt adventure, planning ahead helps avoid costly, last-minute changes and keeps everyone happy.
Another tip is to map out your meals carefully. If your accommodation has a kitchen, cooking some of your meals can save a lot compared to eating out. On a beach vacation, for example, bringing your own food and drinks can cut costs significantly. Additionally, look for local rental services that offer everything you need, from beach chairs to sandcastle building supplies, often at a lower price than renting at tourist hotspots.
When your vacation winds down and you’re back at home, take a moment to stretch your legs… and check in on everyone who went with you. Ask for feedback from the family about what they liked or didn’t like. This can guide future vacation decisions, ensuring that each trip is better than the last. We have found success in using methods like simple surveys or family meetings. Whatever you do, write down the lessons you learned.
Ultimately, vacations should be about enjoying the fruits of your labor. Whether it’s a meticulously organized trip or a spontaneous getaway, the key is to balance cost and enjoyment. By being thoughtful about your planning and budgeting, you can create wonderful memories without breaking the bank.
For more detailed tips and a deeper dive into our experiences, check out our latest episode of Bucks and Trucks here. Happy travels!
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Christian and Collin are financial advisors with Prime Capital Financial in the Springfield, MO office.
