Saving tips for your summer vacation

Here are a few savings tips to help you plan - and save for - a memorable summer vacation.

Have visions of summertime given you the itch to start planning – and saving – for your perfect vacation? It’s never too late – or too early – to start making changes in your spending habits to pay for your trip. However, before you determine just how much money you need for your summer holiday, you should ask yourself the following questions about your vacation:

How will you get to your vacation destination?
Depending on where and how many of you are going, there can be a significant difference in terms of the cost and the time between driving, flying, or taking a bus or train to your vacation destination. Accordingly, once you decide on your vacation location, it’s smart to think about how you are going to get there and the associated costs.

Where will you stay?
Obviously, the type of lodging you choose for your vacation can affect your costs considerably. If you’d like to stay in a four-star resort, you should budget accordingly. If you plan on renting a condo, home or timeshare, you may pay more for lodging but you may be able to save by eating in.

How do you plan to eat?
Your food choices may mean the difference between whether you break the bank or not. If an integral part of your vacation is fine dining, then you will pay for it. However, if fast food or even preparing some of your own meals is fine, then you can save a penny or two. You may also want to consider an all inclusive resort, where food is included in the price of your stay. Remember all-inclusive packages typically don’t include alcoholic beverages and your food options may be limited. In addition, it never hurts to look for hotels that may include Continental breakfasts or to take advantage of dining specials or early bird entrees.

What do you plan to do?
Of course, what you choose to do on your vacation is a huge part of the cost. Think about if you’d rather rent a car or use public transportation; or if you’re interested in taking a guided tour rather than sightseeing on your own. These play a big role in how much you’ll need to spend on your vacation. Also remember to factor in the cost of shopping and any mementos you may want to purchase on your trip.

Now that you are planning for your vacation, you can also start saving for it. Here are a few tips to jumpstart your vacation fund:

• Use part of your bonus or tax refund: If you have a lump sum of extra cash such as a bonus or tax refund you may want to use part of it for a vacation fund.
• Minimize eating out: An easy way to save extra money for your vacation is to prepare more meals at home, pack lunches and skip coffee out. This may help to shrink your waistline before for your vacation as well.
• Skip that night out on the town: Instead of going to out to a movie, bar or show, trying staying in and renting a movie, playing a board game or reading a good library book instead.
• Take public transportation or walk: If you can swing it, you may be able to save a bundle in car maintenance, gas and parking fees by walking to your destination or taking public transportation.
• Don’t tempt yourself: Think of the old adage: Out of site, out of mind. If shopping is your weakness, try to limit your trips to the mall.

You deserve a summer vacation that is relaxing and enjoyable. By starting to plan and save now, you can make your summer holiday one for the memory books.

Related Topics:

• Financial Literacy Guide
• Managing your money
• Smarter spending