How to have a Great Summer Vacation – On a Budget

Family Finances | Summer

Summer vacation doesn’t have to mean draining your savings or racking up credit card debt. With a little planning in advance, you can have a fun, memory-filled summer vacation, while staying financially sound. Whether you’re planning a trip for yourself, vacationing with friends, or planning a family trip, these budget-friendly tips will assure you have a great summer vacation – without overspending.

1. Set a Budget

A good rule of thumb to follow when budgeting a get away is to follow the 50/30/20 rule. This means 50% of your budget is reserved for your monthly fixed costs, such as your mortgage payment, utilities, food, and childcare. 30% is used for discretionary spending and the last 20% goes into your savings. If you follow this method, the 30% you set aside will be your vacation budget.

If you’d like to get an idea of your overall spending and find out whether you are staying within these percentages, Money Management in digital banking includes budgeting tools that organize and categorize your spending so you can see the full picture.

What should you include in your vacation budget?

It’s important to set a realistic budget, based on what your family can afford. Include travel/transportation, lodging, food and drink, activities, souvenirs, and a small emergency fund.

See how much you should be saving monthly to reach your vacation fund goal with our Savings Goal Calculator.

2. Travel Smart

Travel/Transportation

You don’t have to fly across the world to feel like you’re on vacation. Save yourself the cost of airfare and rideshares by travelling locally. Just remember to account for gas and parking when you travel in your own car. If you must fly, consider booking your flights on less traveled days like the middle of the week because prices tend to be lower.

Accommodations

Hotels can eat up a large portion of your budget, so consider alternatives like a rental house or campsite. If your only option is a hotel, consider booking when there are deals available or booking with a travel or rewards focused credit card so you can earn cash back or rebates on your travel purchases.

Planning meals and activities ahead

Planning meals and activities ahead will also help you save money. Bringing your own food and drinks to avoid having to eat out for all three meals every day of your trip will help you stay within your budget. If your hotel offers complimentary breakfast, always take advantage of that. When eating out, consider drinking water instead of paying the additional cost of a soft drink. Prioritizing cheap or free activities like sightseeing landmarks, relaxing on the beach, visiting state parks, visiting local art and history museums, and enjoying public attractions will help keep the cost down. Just don’t forget to keep in mind the cost of parking.

Souvenirs

Start saving early for your souvenirs. To avoid charging unexpected expenses to a credit card, try to rely on cash for these items.

The best souvenirs are the memories you create!

3. Keep an eye out for unanticipated expenses

Remember, certain vacation costs are obvious – lodging, food and drink, travel – but small ones can quickly add up. While you’re comparing costs and looking for the best deal, you should also keep in mind gas, tolls, parking, and sunscreen. Try to walk through a typical vacation day, and map out every expense you might encounter – even the ones you accrue before leaving for the trip (beach towels, toiletries, new suitcase, etc.).

4. Final Thoughts

Don’t go into debt for a summer vacation. A great summer vacation isn’t about how much money you spend. It’s about who you’re with and the memories you create. With a little planning and some creativity, you can relax, explore, and have fun while staying financially savvy.

Keep your vacation savings separate from your main savings. Start saving for your next vacation with our Statement Savings account.

The content provided in this blog is for informational purposes only. Nothing stated is to be construed as financial or legal advice. Some products not offered by JVB. JVB does not endorse any third parties, including, but not limited to, referenced individuals, companies, organizations, products, blogs, or websites. JVB does not warrant any advice provided by third parties. JVB does not guarantee the accuracy or completeness of the information provided by third parties. JVB recommends that you seek the advice of a qualified financial, tax, legal, or other professional if you have questions.

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