It’s always exciting planning a family vacation.
Choosing the hotel, the pool, the restaurants, and the activities is part of the fun of the vacation itself, and sure to have you anticipating your trip.
But, then you need to add up the costs.
Between flights, the hotel, your meals, a rental car, attraction passes, and souvenirs, the money can add up quick.
Suddenly, that dream vacation is looking a lot more expensive than it did when you first started planning.
The good news is that you don’t need to spend a fortune to have a great family vacation.
The key is knowing what you can comfortably afford before you start booking anything, and then building your plans around that number.
A little planning now as you start to budget for your family vacation can make it much easier to enjoy your trip later without constantly worrying about how much everything is costing.
Start With the Vacation You Actually Want
Before you start comparing hotel prices or searching for cheap flights, think about what kind of vacation your family actually wants.
Are you hoping to spend a week relaxing at a beach resort? Would your kids be happier exploring a new city and visiting attractions?
Or, would everyone love a road trip, a camping trip, or a few days at a theme park?
The choice you make is going to make a big difference in your final budget, so be clear on that first.
Then, once you have an idea of where you want to go and what you want to do, start looking at the costs.
Remember to look beyond the price of the flights and hotel. Your vacation budget should account for things like:
- Transportation, including flights, gas, rental cars, and parking
- Accommodations, whether you’re staying at a hotel, vacation rental, or campsite
- Groceries and meals at restaurants
- Attractions and activities
- Travel insurance
- Souvenirs and other extras
- An emergency cushion for unexpected expenses
Having an emergency fund can be particularly important when you’re travelling with kids.
A missed connection, broken suitcase, unexpected hotel expense, or car problem can throw your budget off quickly.
Leaving some extra room when you budget for a family vacation means one surprise expense doesn’t have to turn into a financial crisis.
Figure Out How Much You Need to Save
Once you have a rough idea of what your vacation will cost, take a look at how much time you have before you plan to leave.
For example, if you’ve estimated that your family vacation will cost $3,000, and you have 10 months to save, you’d need to put aside about $300 each month.
That number might sound manageable. Or, it might make you immediately rethink the entire vacation.
If $300 a month isn’t realistic for your household, don’t assume that means the trip is impossible. You have options.
You could give yourself a few more months to save, choose a less expensive destination, shorten the trip, or adjust some of the activities you had planned.
You may also be tempted to use a vacation loan or personal loan to cover some of the cost.
While financing can sometimes make sense in specific situations, it is worth comparing current personal loan rates, and considering whether the monthly payment will still fit comfortably into your budget after the vacation is over.
The last thing you want to do is come home from your vacation wishing you’d never booked it because of the costs.
Find Extra Room in Your Everyday Budget
You don’t necessarily need to make huge changes to your lifestyle to budget for a family vacation. Sometimes, a few smaller changes can add up surprisingly quickly.
Start by looking at where your money is going now.
Could you eat out a little less often for a few months? Are there subscriptions you’re barely using? Could you cut back on takeout, impulse purchases, or other nonessential spending until you’ve reached your vacation goal?
You don’t have to give up everything you enjoy. In fact, an overly restrictive budget can be difficult to maintain, especially when you’re already juggling the expenses of everyday family life.
Instead, choose a few areas where you can realistically spend less and put that money toward your trip.
One of the easiest ways to make this work is to automate your savings.
Set up an automatic transfer to a separate vacation savings account every time you get paid. That way, the money is moved before you have a chance to spend it on something else.
You can also put unexpected money toward your vacation fund.
This could come from things like a tax refund, work bonus, cash gift, or money earned from selling things your family no longer needs.
Look for Ways to Lower the Big Expenses
Once you’ve set your overall budget for you family vacation, take a closer look at the expenses that make up the biggest portion of it.
Travel and accommodations are often two of the biggest costs, so finding savings in either area can make a noticeable difference in your final vacation cost.
If your schedule is flexible, consider travelling during the shoulder season, which is the period just before or after a destination’s busiest tourist season.
You may find lower prices and fewer crowds, while still getting much of the experience you’re looking for.
It can also be worth comparing different types of accommodations.
A hotel may be the obvious choice, but a vacation rental with a kitchen could save your family money on meals.
Even preparing breakfast and packing lunches a few days during the trip can make a difference in the amount you spend on food.
Give Yourself a Daily Spending Limit
Getting the vacation paid for is only half the battle. Once you’re actually there, it can be surprisingly easy to spend more than you planned.
A $5 snack here and a $10 souvenir there might not seem like much as you’re spending it.
But, multiply that by several people over several days, and those little purchases can add up quickly.
Before you leave, decide how much you want to spend on things like food, souvenirs, and extras each day.
You don’t need to make your family track every dollar. Simply having a general limit can help keep spending from getting out of control.
This is also a great time to give your kids their own souvenir budget.
Letting them know ahead of time how much they can spend in total can prevent the familiar vacation scenario of having to negotiate with your kids at every souvenir shop.
Finally, pack your own snacks!
Bringing your own snacks for the car, airport, or long days of sightseeing can save you from paying inflated prices every time someone announces that they’re hungry.
Mix Expensive Activities With Free Ones
You don’t have to pay for an attraction every day to keep your family entertained. There are likely many great free or inexpensive things to do at your destination.
A local park, beach, playground, walking tour, public market, or free museum day will let your family have fun together without adding another big expense to your vacation.
If you have an expensive activity planned, balance it with something free the next day.
Many times, this can actually make your vacation less stressful, as free activities will likely be more flexible with their timing.
Remember, your kids aren’t going to think about how much you spent on an activity. They’re going to remember the fun they had.
Because of that they may often be just as happy playing at a beach or exploring a new playground as they would be visiting a pricey attraction.
Don’t Forget to Protect Your Trip
After putting so much time and money into planning your vacation, it makes sense to think about what could happen if your plans suddenly have to change.
Depending on your destination and circumstances, travel insurance may be a good idea to help protect you against unexpected expenses, such as illness, trip cancellations, or travel disruptions.
It’s also worth checking cancellation and refund policies before you book hotels, activities, and other potentially non-refundable parts of your trip.
Understanding the terms ahead of time can save you from an unpleasant surprise later.
A family vacation should give you the opportunity to spend time together and bond, without coming home to a pile of debt and a huge financial hangover.
By planning the budget for you family vacation in advance, saving regularly over a period of time, and trimming your expenses both at home and on your trip, you’ll soon have the money you need for your getaway.
But, remember that a successful family vacation isn’t one where you spend the most money.
It’s one where you can relax, enjoy doing things with your kids, and come home feeling like the experience was worth every dollar you saved for it.