Summer is just around the corner and most of us have begun thinking about and possibly are already planning for our summer family vacations.
In an ideal world, we’d already have a fully funded vacation savings account to pay for our annual family getaway. However, the reality is that most of us wait until the last minute to begin planning and paying for our summer vacation.
So, here are a few fast track tips to help you save for your summer trip:
1. Start with a budget – discuss and determine upfront how much you want to spend on your family vacation. Have a specific figure in mind. This should include plane tickets or gas if you’re driving, hotel prices and an estimate of cost for meals, admission tickets for theme parks, museums, etc. Then, total it all up. If this figure sends you into a coronary arrest…just kidding…then cut back until you and your bank account are comfortable. The last thing you want to do is to go into debt for a vacation. If money is tight, consider taking a couple of weekend getaways instead of one big dream trip.
2. Prioritize now – are there some items currently in your budget that you can omit or would be willing to sacrifice now for a fun vacation later? Can you downgrade a plan, such as your TV cable or satellite plan or go out to eat less? A typical family with kids younger than 6 spends an average of $240 each month on restaurant meals, according to the National Restaurant Association.
So, go through your current household expenses and cut out some nonessentials or superfluous expenses. Then take that extra money and put it away in a separate vacation savings account.
3. Have a garage sale – a garage sale is a great way to earn some vacation cash quickly. Run an ad in the local paper to attract a crowd and post easy-to-read signs around your neighborhood. Get the entire family involved in this – make this a fun family affair. Have the kids go through their rooms, toy boxes, etc. and tell them whatever proceeds are collected from their items will be put towards their souvenirs. This is also a fun spring-cleaning project. It’s a win-win.
4. Use your tax refund now – if you typically get a sizeable income tax refund from the IRS every year, you are probably having too much money withheld from your paycheck. If this is the case, fill out a new W-4 form and adjust your withholding so that it’s fairly close to what you owe each year. Then begin transferring that extra money into your dedicated vacation savings account. If you still get a refund, stash that away as well.
5. Let your credit cards help pay for your vacation – in the months prior to your vacation, use your credit cards with reward points for everything your normally pay for with cash, debit card or check. Use these accumulated points towards plane tickets, hotels, rental cars and gift cards for restaurants. But, make sure to pay off the balance on your card in full every month or you’re defeating the purpose of a debt-free vacation.
6. Get everyone involved in the saving excitement – chart your savings with a graph, much like you see with fundraisers, on a large poster board. Track your weekly and monthly progress with colorful markers. You can even reward yourself and your family for reaching certain goals, e.g. go out for ice cream when you’ve reach a savings milestone.
In a nutshell, make a realistic plan for your family summer vacation, save for your plan and make the process a fun family affair! By doing this, you will be creating special memories instead of debt.