Family vacations are special occasions for both parents and children. However, they don’t plan themselves, and costs can quickly add up. Having a budget in mind (and sticking to it) can help to guide the planning process and ensure you don’t find yourself in a bind once you return home.
Using a credit card remains the most popular method for paying for a holiday, with just 17% of Americans using personal savings to finance a trip. While a credit card can potentially give you more flexibility in the short term, it can mean you end up paying off your debt after returning home, rather than putting that money towards the next vacation.
In this guide, we explore three things you can do to budget for a holiday with kids. From how to set a budget in the first place to ensuring you stick to it, this blog can help any parent planning a dream vacation with their little ones.
Set out the biggest costs
Before you start saving in earnest, it’s helpful to have a rough idea of exactly how much the vacation is going to cost. Of course, the final figure can vary greatly depending on a whole host of factors: location, accommodation, activities, travel and so on. Ultimately, there isn’t a right or wrong way to budget, so long as you’ve accounted for every aspect of spending.
For example, some people might prefer to have their flights and accommodation booked first, so they know how much they have left to spend on activities, food and drink. However, since entertainment and dining are often the biggest expenses of family holidays, others may prefer to identify the activities that are top of the priority list, such as a theme park synonymous with the location, before apportioning funds to other categories. Whichever approach you favor, having a rough figure (broken down by spending category) in mind will keep the planning process on track and ensure you can make the most of your time away.
Cut back on other expenses
Budgeting often comes with an element of compromise. In order to enjoy your family vacation to the fullest, it might be worth cutting back on other expenses in the build-up to getting away. For example, if you regularly enjoy a day out as a family or perhaps like to try a new restaurant each month, it might be worth identifying these big outlays to help your vacation fund stretch a little more.
You may take it one step further, and track your spending in the months before your trip. This way, you may notice unnecessary costs that can be saved, such as subscriptions you no longer use or any non-essential items. Getting into the habit of saving and regularly adding to your pot is the best way to gradually build up your fund, without it impacting your lifestyle too much before or after the vacation.
Involve the kids
Planning (and budgeting for) a family vacation is a wonderful opportunity to introduce your little ones to some important life skills. When it comes to the money side, encourage them to save their pennies in the build-up to the trip to see how much they can save. Even though their piggy bank is unlikely to contribute to the final costs, it’s a great way to make them feel more involved, and any change could be used as their own personal spending money.
As well as involving them on the financial side, think about getting their input when it comes to planning the trip itself. Ask them to think about activities they might like to do, reminding them that there is a budget in place. This way, not only will you ensure everyone has something to look forward to on the itinerary, but you’re also reminding them of the importance of budgeting.
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