Ways to Save Money for a Family Trip
Updated August 1, 2022 . AmFam Team
Among the many joys of being a parent is the opportunity to share your passions with your children. From exploring your favorite hobbies to diving into cherished family recipes, as your kids grow so do the memories you create together.
Going on vacation with your children is a great way to bond with them, but it can get costly. The good news is that getting out of town doesn’t have to break the bank. Plan for your next family adventure by exploring the tips in these family vacation FAQs.
How Much Should You Budget for a Family Vacation?
Vacations can get expensive fast. The average cost per person for a week-long vacation is about $1,200 annually. So, if you’ve got a family of five, you’ll need to sock away at least $6,000 for transportation, hotels, meals and amusement parks.
That hefty number equates to around 8.5 percent of an average family’s yearly income. But here’s the good news: with a little planning and careful spending, you can chop those costs down to size.
Which Financial Management Apps Help You Save?
One great way to start saving is to connect your bank account to a finance management and budget tracking app. By installing a money-saving app on your phone, you’ll clearly see where you’re spending and may be able find opportunities to save.
Check out budget apps like Mint, PocketGuard or You Need a Budget — all of which are great at tracking your spending. They help you to understand your finances by breaking down your money into spending categories. And at the end, you’ll have a better idea of how you can push more cash into your vacation savings account.
Another great way to save money is to download the MyAmFam app. Doing so affords you savings on your premium when you go paperless, and the benefits keep coming. From instant access to your proof of insurance to real-time claims management, the MyAmFam app gets you the features you need at your fingertips.
Why Should You Enroll in Rewards Programs?
From customer loyalty programs to free perks you’ll get when you sign up, airline and hotel loyalty programs can offer big discounts and savings. Enroll in frequent flyer programs and enjoy the benefits of free checked or carry-on bags and priority seating.
Hotel rewards packages offer perks like free in-room Wi-Fi, early and late check out options, free room upgrades, complimentary breakfasts and access to executive lounges. You may even qualify for free hotel stays after earning enough points.
One of the best ways to save on travel expenses is to pick up a travel-friendly credit card. Many airlines offer their own card with competitive rates and they hand over serious miles to new card members. With no- or low- balance transfer rates, you’re also able to consolidate debt and build out your vacation budget. And they’ve made earning points towards travel easy by doubling your points when you use the card towards hotel stays.
What Are the Benefits of Opening a Vacation Savings Account?
Owning a home can be full of financial surprises. You’ll need to have money socked away for unexpected maintenance expenses, but there are real benefits for putting your vacation money aside in a separate account. You’ll be able to spend directly from that account while you’re traveling.
And as your children get older, invite them to join the vacation fund. Consider allowing them to select a destination they want to visit and work with them toward that goal — watching their savings rise with every deposit.
Can You Bundle and Save on Your Vacation?
Compare and contrast costs by bundling airfare, hotel and car rentals with different travel websites like Priceline and Expedia. The result can save you a lot of money when compared to booking each separately. The same goes for your insurance needs, too. By bundling your home and auto insurance, you’ll be able to tuck extra cash away for your family vacation.
How Can You Save on Transportation Costs When Traveling?
From airport parking fees, interstate tolls and gas to airfare, taxes and rental cars rates, travel-related expenses can account for more than half of your vacation budget. Try using public transportation instead of renting a car to help you save on cash.
If you do decide to rent a car, look into off-airport rental car locations. By working with a group that’s located off airport property, you’ll save on airport taxes and fees. Some even offer a shuttle to and from the airport. Others will deliver the car directly to your hotel.
Are There Benefits to Hotels With Free Shuttles and Free Breakfasts?
Leverage the airport shuttle to get your family to the hotel for free. You’ll be able to breathe a little easier because you won’t have to queue up for a rental car after dealing with baggage claim. And by booking hotels that offer free breakfasts to their guests, you can trim your vacation meal budget down a bit.
Can You Mix Business With Pleasure on a Family Trip?
If your professional association has an annual destination conference, think about pairing a business trip with your family vacation. Your spouse and kids can have some time exploring local attractions while you attend the event and you’ll be able to write off — or be reimbursed — for a portion of your business travel expenses.
This approach works well for professionals who need to attend continuing education sessions. Frequently, these events are held near family-friendly destinations. Check in with your accountant prior to booking the trip to be sure that you’re working in line with current tax laws.
Also, be sure that your trip will qualify as a reimbursable expense. Save your receipts and document your spending carefully.
Another option? Plan a workcation, or working vacation, which gives you the opportunity to travel for work and pleasure at the same time!
How Can Garage Sales Help You Save for Time Away?
Rally the kids and work together to host a garage sale. Depending on the scale of your sale, you could rack up hundreds which should help cover the cost of entrance fees to their favorite amusement park. By planning a yard sale on a summer holiday weekend, you could really rake in the cash.
How Can Free Events Help You Save for Vacation?
It’s normal to fall into a routine as a family, especially when you find shops, food joints and events you enjoy. But when you’re saving for a vacation, your spending habits may need to shift.
Check for “free events near me” online and even ask on social media for suggestions from friends. You’re likely to find plenty of nearby happenings that will be fun for every age group. And you’ll be surprised at how quickly your calendar will fill up — without spending an extra penny.
Saving up for a trip doesn't have to be a chore. Follow these tips and you'll be on track to fulfilling your family’s travel dreams. And who knows? Being a bit scrappier may even help you discover exciting new experiences that were right under your nose.
Find the Travel Insurance Your Trip Needs
While you’re making vacation plans, be sure to check in with your American Family Insurance agent (Opens in a new tab) and get a quote on travel insurance. You’ve worked hard for your time off — enjoy your time with family and relish those memories that will last a lifetime.
This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.
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- Ways to Save Money for a Family Trip
Among the many joys of being a parent is the opportunity to share your passions with your children. From exploring your favorite hobbies to diving into cherished family recipes, as your kids grow so do the memories you create together.
Going on vacation with your children is a great way to bond with them, but it can get costly. The good news is that getting out of town doesn’t have to break the bank. Plan for your next family adventure by exploring the tips in these family vacation FAQs.
- Credit and Identity Theft Monitoring
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Credit monitoring and identity theft protection are two different ways to proactively protect yourself if your personal information gets into the wrong hands. Let’s take a look at the differences and why it’s important to implement them both together.
- Saving for a House
There are a few defining moments in our lives. For some, it’s the realization that buying that first home is within reach, both financially and emotionally. It’s a big step, and it’s one that’s built into the American dream. And if you’re left wondering how much money you should save before buying a house, you’re not alone. These costs can add up quickly.
After you’ve made the big decision to start shopping for a home, you might be surprised to find that coming up with the cash down payment is only one of several financial hurdles you’ll need to clear. Exactly how much you should save for a house depends on a number of factors, like the value of the home you’re targeting and the amount of money you intend on pushing into your down payment.
- Pay Off Student Loans or Buy a House?
After college, life moves fast. You get your first big job, move out of your parents’ house and start a whole new life on your own. For most people, this also means paying off student loan debt from your college tuition. Having this debt may make big milestones like buying a house seem far off, but there are ways to make the leap from renter to homeowner even if you have student loans. So can you get a mortgage while also paying off student debt? Or should you wait to pay it off before you buy a house?
Every situation is different, so it’s important to do the right research and choose the best option for you. Luckily, we’ve done some of the breakdown for you to help you decide whether to pay off your student loan entirely or buy a house.
Can Student Loans Affect Buying a House?
Typically, student loan debt doesn’t prevent you from getting a mortgage. The biggest thing to note is that student loan debt does influence your debt-to-income ratio, which is a factor lenders consider before giving you a loan. It can also affect the interest rate you pay on your mortgage.
Buying a house with defaulted student loans
If you’ve defaulted on your student loans, it’ll be more difficult — but not impossible — for you to get a mortgage. Because defaulting negatively affects your credit score, lenders will be less likely to want to give you a loan or will charge a much higher interest rate on a loan.
Getting a home loan with student loan deferment
If you’ve deferred your student loans, this usually won’t affect your chances of getting a mortgage. Just be sure to consider how the future estimated payments will factor your debt-to-income ratio. Some types of mortgages may reject applicants with deferred loans, so do your research on the different types of mortgages before shopping.
Should You Pay Off Student Loans Before Buying a House?
Buying a house is expensive, there’s no doubt about that. It can seem smart to hold off on house shopping while you still have student loan debt, and it can be even more difficult to save for a house if you’ve got a high debt-to-income ratio. But if you have enough income to handle the payments for both, you may want to consider investing in your first home.
Signs You Should Pay Off Student Loans
When considering whether to pay student loans or save for a house, there are a few factors that can help you decide if paying off your student loans should be a priority.
Your debt-to-income ratio is too high
If the amount of money you bring in monthly or yearly is almost the same as the amount of money you pay out in debts — like student and car loans or credit cards — it may be best to pay down your debt before buying a house.
You’ve defaulted on your loans
Defaulting on your loans has a severe negative impact on your credit score, which tells lenders that you’re a bigger risk to take on. Work on improving your credit score before shopping for a mortgage.
You’re struggling to make payments
If you feel like you’re living paycheck to paycheck or struggling to make payments on your loan every month, it’s best to hold off on saving for a house. Need help keeping track of your student loan payments? Try our student loan payment tracker to get organized.
You haven’t saved for a down payment or emergency fund
Before you start picking out which houses you want to tour, you should take a look at your savings. If you don’t have enough for a 5 to 10 percent down payment or enough as an emergency fund for home expenses — like a broken dishwasher or damaged roof — take more time to put money away for your first home.
