With rising food and fuel prices, many Americans are feeling sticker shock just buying gas and groceries. They’re being especially frugal when considering a summer vacation. A survey by Deloitte revealed that 45% of respondents were planning for a summer vacation with paid lodging, the lowest level in the last six years.
Whether you’re planning a “staycation” close to home or hoping to travel this summer, many Americans are considering how to save for vacation and need some budget-friendly travel tips. With that in mind, we offer these vacation budgeting tips and ideas on how to save for vacation.
Start With a Realistic Vacation Budget
Take a close look at your household budget: Your take-home pay, your regular living expenses, and any savings that you could realistically tap into without throwing off your plans. Figure out how much you could set aside between now and when you plan to take a vacation
AAA has information on gas prices across the country, and GasBuddy is useful for finding the cheapest gas stations. If you plan to fly, Google Flights can help you shop for airfare, compare airline prices, and set up alerts for information that might affect your travel plans. Travel websites such as Expedia and Priceline can help you search for affordable places to stay and compare your options.
Of course, your vacation budget must also include food and drinks, entry fees and tickets, plus incidentals such as rentals, tips, baggage fees, parking, and maybe some sunblock and souvenirs along the way. One rule of thumb is to use from 5% to 10% of your family’s annual income for travel and vacation expenses, and you should include a financial buffer for any unexpected costs, price increases, or a “must-have” item that you find in a souvenir shop. Your buffer might range from 10% to 15% of your estimated vacation budget, depending on how frugal you are and how well your family sticks to a budget.
Save Before You Go
Once you have an idea of your vacation budget and costs, you can take a closer look at your regular household budget and look for ways to save. You might open a designated savings account for your travel budget and set up automatic transfers from your checking account to encourage yourself to save. You can also remind yourself, and your family, that you have travel plans coming up, so it’ll be important for everyone to cut back for a while. Here are a few things to consider:
- Reduce or eliminate restaurant meals and food deliveries for a while.
- See what streaming services and subscriptions you could put on hold or eliminate.
- Encourage your family to bring their own meals and drinks to work and school such as taking a thermos full of coffee to work, instead of your regular coffee shop.
- Look for ways to reduce your energy costs, such as setting your air conditioner to a higher temperature, or keep it off as much as possible, and relying on fans to keep you comfortable.
- Cut back on driving and plan your errands to reduce unnecessary trips.
- See if there are any items around the house that you don’t use anymore and might sell online or through a garage sale.
- Look at your phone and Internet plans, especially if you haven’t shopped around in a while. Some providers will offer some very favorable introductory rates to acquire new customers. You might also save money on phone service through a family plan.
Look for Flexible Travel Options
For airlines, the month of August is typically a less expensive time to fly than June and July, so you might be able to save money on travel by adjusting your plans. Flying on weekends is usually more expensive than flying during the week. Late-night and early morning “red eye” flights are usually less expensive than other times of the day, so a flight that leaves between 10 PM and 7 AM could make your trip more affordable.
Buying your tickets a few months ahead of time will typically be more affordable than waiting until the last minute. Travel experts recommend buying tickets one to two months ahead of time for domestic flights and three to five months ahead of international flights. Some experts suggest buying tickets for an international flight one month in advance, so take the time to shop around and compare prices.
You can also look for alternative airports that are close enough to your destination to be convenient, but far enough to save money on airfare and car rentals. Many people discover that Orlando Sanford International Airport can be more affordable than Orlando International. However you plan to fly, make sure you understand what the cost of canceling a flight, getting a refund, or changing your plans would be.
Cut Costs Without Cutting Fun
Of course, the greater St. Louis area has plenty of attractions that many residents might not take advantage of very often. A “staycation” can be a great way to save money while also enjoying what our community has to offer. Here are just a few suggestions:
The St. Louis Zoo
The St. Louis Zoo (officially known as the Saint Louis Zoological Park) has free admission. Street parking is free but limited. Zoo parking lots cost $20 per vehicle for non-members, and there is free charging for electric vehicles in the south parking lot. Some attractions charge an admission fee.
It’s worth noting that the zoo is now completely cash-free. It accepts VISA, Mastercard, Discover, and American Express credit cards, most debit cards, plus Apple Pay and Google Pay. The zoo does not have ATMs, but visitors can obtain a free pre-paid MasterCard debit card from one of several kiosks and add value to it using cash. The card can be used throughout the zoo and anywhere MasterCard is accepted.
The St. Louis Science Center
The St. Louis Science Center offers free admission. Parking costs $15 per vehicle but is free for members. Some top attractions, such as the McDonnell Planetarium, an Omnimax theater, and educational programs, require tickets, although numerous exhibits can be viewed for free. The center is closed on Tuesdays.
The St. Louis Art Museum
The St. Louis Art Museum is free. Parking costs $15 per vehicle. Special exhibitions require a ticket but are free on Fridays.
The City Museum
The City Museum is a top attraction for many families and is like an art gallery, a museum, an aquarium, and a playground combined. Tickets start at $20, and you can save 10% if you buy them online; some activities cost extra. Annual passes start at $34.99. Parking costs $15 per vehicle.
The St. Louis Arch
The St. Louis Arch, officially known as The Gateway Arch, is probably the city’s best-known attraction and stands 630 feet high. Tickets start at $15 for adults, $11 for children, with several packages available. Buying tickets ahead of time is advisable, as you must choose an entry time.
Forest Park
Forrest Park in St. Louis offers many activities, including a six-mile recreational trail, a golf course, and the Anne O’C. Albrecht Nature Playscape, a 17-acre natural landscape with plenty of space for kids and grown-ups to climb, dig, and play. There are also numerous places to have a picnic. Bicycles, paddle boards, kayaks, and other human-powered watercraft are available to rent. Free parking is available.
Use Credit Cards Wisely While Traveling
Whether you use a credit card or debit card on your vacation is up to you, though it’s worth considering your options. A debit card might encourage you to stay within your budget, it may have lower transaction limits. Credit cards give you more flexibility, offer fraud protection, and rewards programs can help offset your vacation costs and may offer perks such as rental car insurance. If you’re traveling to other countries, you should let your bank and credit card company know ahead of time to make sure they don’t flag your transactions for being suspicious. It can be really tempting to overspend on a vacation, especially with a credit card, so do your best to stick to a budget so your vacation costs don’t eat into your household budget later on as you work to pay off your balance.
Track Spending Before and During Your Trip
It can be easy to get carried away on a vacation and spend more than you intended. We recommend keeping track of every expense before and during your vacation as a way of encouraging you to save up ahead of time and to not go over your budget.
Open a Dedicated Savings Account
Even if you already have a savings account with us, consider opening a travel savings account as you save up for a vacation, and perhaps a Visa credit card to make it easier for you to spend and keep track of your budget on vacation.
At Neighbors Credit Union, we’re locally owned and operated with a focus on serving the St. Louis community and surrounding areas. If you have any questions about savings and budgeting or opening an account, please contact us online, call us at 314-892-5400, or stop by your local branch location.