How to Budget for Summer Travel Without Going Into Debt

4 MIN. READ

 

Key takeaways:

 

• It’s easy to overspend when you’re on vacation.
• You can stay in control of your summer travel spending with a few simple budgeting tips.

A simple summer vacation can get expensive if you’re not careful.

However, there are plenty of opportunities to take a break from your routine and make some great memories on a budget.

In this blog, we share a few budgeting tips for taking a well-deserved vacation without breaking the bank.
 

5 Simple Tips for Better Summer Travel Budgeting

A basic vacation budget helps you stay in control of your spending so that you’re not taking on credit card debt and can do things you love without any financial stress.
 

Figure Out Your Total Budget

Before you plan your trip, a quick financial audit can help:
 

• Do you have any savings earmarked for a vacation?
• If not, how much do you have in your savings account?
• And how much can you comfortably spend on a trip without delaying your other financial goals?

A quick audit will give you an idea of the total amount you can spend on your trip, so you can plan a trip that fits your budget.

Allocate Travel Expenses by Category

A common travel mistake is to focus on your flight and accommodation and fail to budget for everything else.

We recommend pricing these different expenses for the destination you have in mind:
 

• Flights
• Accommodation
• Food and drinks
• Activities and tours
• Transportation (car rental, public transit or Uber)
• Souvenirs

We also recommend having an emergency buffer in case something comes up or you end up overspending in one of these categories.
 

Start Saving Early With a Vacation Fund

Start saving early with a monthly contribution to a savings account earmarked for your vacation.

Look for small expenses you can cut to add to your vacation fund, and consider putting windfalls like bonuses and gift money in it. Remember that spending money on experiences is more likely to make you happy compared to buying things.

Plan and Book Your Trip Ahead of Time

Dedicate one or two hours every weekend to planning your vacation. It can be a fun activity, and researching your destination will help you discover more ways to save.

Here’s what we recommend:
 

• Book your flight in advance. You’ll typically get the best prices two to three months ahead of time.
• Avoid third-party fees by booking your accommodation directly.
• Hotels and short-term rentals can get expensive. Look into hostels and bed and breakfasts instead.
• Check apps like Eventbrite and Viator to find fun and inexpensive activities and events.
• Look for local eateries, or book an accommodation with basic cooking amenities to save on food.
• You can use your credit card to take advantage of rewards, but aim to pay your statement in full.

As an alternative, you can create a shortlist of four or five destinations and book your trip later to take advantage of last-minute deals. This can be a good way to save if you don’t mind being flexible.
 

Keep Track of Your Spending

It can help to have a daily spending limit during your vacation. At the end of each day, take a few minutes to review your spending and make sure you’re still within your budget.

Power Financial Credit Union has convenient mobile banking features that can help with this.
 

Red Flags: Signs You’re Overspending on Your Vacation

It’s easy to get carried away and spend more than you can afford when planning a trip. Here is what to watch out for:
 

• Spending your emergency fund on a trip
• Charging major expenses like your flight or hotel room to a credit card without the ability to pay it off at the end of the month  
• Booking with a Buy Now, Pay Later offer
• Skipping needs or important bills to travel

If any of these things are true, it’s time to make a few changes to your plans. Picking a less expensive destination may be your best option.
 

Budget for Summer Travel With Power Financial Credit Union

Power Financial Credit Union has some great banking tools to help you manage your money during summer travel (and the rest of the year).

With our club savings accounts, you can start building a vacation fund ahead of time. We also have checking accounts and credit cards with convenient mobile banking tools you can use to keep an eye on your spending during your trip.

Anyone who lives, works or goes to school in South Florida can become a member. Learn more online or at one of our South Florida branches.
 

FAQ

How do I figure out how much I can spend on summer travel?

Start with a quick financial audit. Check if you have vacation savings, review your total savings, and decide how much you can comfortably spend without delaying other financial goals. This gives you a realistic total budget for your trip.
 

Which expenses should I include in my travel budget?

Don’t just budget for flights and lodging. You should include food and drinks, activities and tours, transportation (car rental, transit, or Uber), souvenirs, and an emergency buffer for unexpected costs or overspending.
 

When is the best time to book flights for the lowest prices?

You’ll typically get the best flight prices two to three months ahead of time. Book in advance to avoid last-minute price spikes.
 

How can I save on accommodation without sacrificing comfort?

Instead of expensive hotels or short-term rentals, look into hostels, bed and breakfasts, or accommodations with cooking amenities to save on food. Booking directly (not through third parties) can also help you avoid additional fees.