Holidays – we all love them. Right! So in this post, I’m going to share with you 5 tips on how to budget for your next family vacation. There’s nothing better than that moment when you can finally flick the switch from ‘I’m going on holiday’ to ‘I’m on holiday’! But let’s not kid ourselves; going on vacation takes planning, preparation and budgeting! Whether you’re going on a family road trip vacation to the seaside village an hour from where you live or flying halfway around the world, you’re going to need to budget for it.
Disclaimer: This is a collaborative post written by me.
How To Budget For Your Next Family Vacation
There are several things you need to consider when you start budgeting for your family vacation. It’s not all about saving money or putting it on a credit card. There are other ways, means and options available to you. So let’s discuss the options, choices and things to consider when you budget for your next family vacation:
Where are you going?
Maybe you don’t actually have a destination in mind when you start saving. Some people might decide to save up a certain amount and then see where they can go with what they have. This is a really responsible way to work on your budget for a family vacation. It allows you to manage your expectations based on your financial situation – some people might be happy saving for 10 years for that dream vacation to Disneyland; however, some might prefer to save for a year for a week in a more local setting not too far from home.
How much can you afford to save, per week or per month?
Sometimes, no matter how much you want to save, some unexpected expenses come up. It’s important to always save for emergencies first, and anything you can save over and above your living costs + your emergency fund, then you can add what’s left to your holiday savings fund.
Who all is going?
We are a blended family of 5. Sometimes my stepdaughter doesn’t come on holiday with us because she’s with her mum. In these situations, the difference between a family of 4 and a family of 5 can have financial implications. Sometimes, one of the parents might have to work so that the other parent will take the kids away on their own. It’s always worth having a clear idea of how many people are going when you budget for your next family vacation.
How much time will you allocate to this family vacation?
Before the girls started primary school, going on holiday was significantly easier and cheaper. But now we have to consider school holidays, time off work, and coordinating holidays around work responsibilities. Did you know that kids have a social life that you need to factor in occasionally too! It’s true. Anyway, it’s also worth considering how many days of holiday you have left in your annual leave, and how much you need to save for summer break! Yes, this is a thing!
Even the Christmas break, which is about 10 days in the UK, means you only have so much time to go away, and quite often, family vacations over a peak holiday season can be much more expensive than if you went over a random half term. You could always consider going on holiday during the off-season … honestly, there’s a lot to be said for Christmas in the sun on a family holiday to Dubai or going to South Africa during the summer holidays when it’s their winter.
How will you pay for your family holiday?
There are many different options available to you when it comes to paying for your family holiday. Personally, I’m not a fan of debt; however, using a credit card to pay for a holiday isn’t the worst idea. Many of them offer protection on your purchase and other benefits such as reduced costs for travel insurance, etc. For example, paying for your flights that you booked 10 months in advance on your credit card means you can pay it off in time before the holiday. Just make sure you make more than the minimum payments. Find out more here.
You could also split the cost of the holiday with a combination of savings and credit cards. Use your savings to pay for the bulk of the costs, and then use your card for the smaller expenses. One tip though: don’t buy foreign currency on your credit card – the fees are ridiculous.
So, with these insights into how to budget for a family vacation, where will you head off to next?