How to budget for summer vacation

Summer is the perfect time to take a break from your day-to-day routine and embark on a well-deserved holiday. However, vacation costs can add up quickly without proper planning. This step-by-step guide can help you budget for a summer vacation so that you can make the most of your trip without overspending.

Determine your destination

The first step of budgeting for a summer vacation is deciding where you want to go, since your destination will significantly influence your overall expenses. It is important to take these factors into consideration:

• Domestic vs. international: Travelling within your country may be more affordable than going overseas due to lower flight costs and no currency exchange fees.
• Popular tourist spots vs. hidden gems: Well-known tourist locations are often pricey. Exploring lesser-known locations can provide unique experiences for less cost.

Set a realistic budget

It is time to set a budget after you decide on your destination. Break down your expenses into categories such as:

• Transportation: Flights, rental cars, gas, and local public transportation.
• Accommodation: The cost of hotels, vacation rentals, or other options.
• Food and drink: Groceries, dining out, and any special meals you plan to enjoy.
• Entertainment: Entrance fees to attractions, tours, and other recreational activities.
• Miscellaneous: Shopping, souvenirs, and other expenses.

Using a spreadsheet or a budgeting app can help you keep track of these costs and stick to your budget.

Research and compare prices

Researching and comparing prices for all aspects of your trip can help you find the best deals. Flight comparison websites can help you find deals and booking in advance or being flexible with your travel dates can also help reduce the price of your tickets.

Hotel booking platforms can help you find better deals for accommodation while you’re on vacation, and alternative options such as hostels, vacation rentals, or even house-sitting can help cut down on costs. Many local attractions offer discounts and deals. Additionally, some cities offer tourist passes that provide access to multiple attractions at a reduced rate.

Save in advance

Saving money before your vacation can make a significant difference. These strategies can help build your vacation fund:

• Create a dedicated savings account: A separate account for your vacation fund can help you avoid spending the money on other things.
• Cut back on unnecessary expenses: Analyze your monthly expenses and identify areas where you can cut back, such as dining out or canceling subscription services.
• Automate your savings: Set up automatic transfers from your main account to your vacation fund to ensure consistent savings.

Travel during off-peak times

Travelling during the off-peak season can help you save costs. If your schedule is flexible, consider travelling during shoulder seasons, or the period between peak and off-peak seasons, to get lower prices. Additionally, flights and accommodations are often cheap mid-week compared to weekends.

Plan your meals

Food can be a major expense while travelling. These tips can help you stick within your budget:

• Cook your own meals: Prepare some of your meals to save money if your accommodation has a kitchen.
• Bring snacks: Carry snacks while you’re sightseeing to avoid impulse purchases.
• Local cuisine: Local dishes at street food stalls or smaller restaurants offer an enjoyable and affordable dining experience.

Take public transportation

Use public transportation to get around instead of relying on taxis or rental cars. Most cities have affordable transit systems. Additionally, consider walking or renting a bike to explore during your vacation.

Consider alternatives for accommodation

Your accommodations can be one of the biggest expenses on vacation, so consider reducing costs by:

• Staying outside the city centre: Hotels and other types of accommodation are often more expensive in the city centre. Staying in nearby neighbourhoods can be more affordable.
• Alternative lodging: Hostels, vacation rentals, or even camping are cost-effective options.

Research free activities 

Many vacation destinations offer free activities and attractions, including:

• Parks and beaches: Explore the natural beauty of parks, beaches, and hiking trails.
• Free events: Local event calendars often provide free concerts, festivals, and other community events.
• Museums and cultural sites: Some museums and historical sites offer free admission on specific days.

Track your spending

It is important to keep track of your spending during your trip to ensure you stay within your budget. Using budgeting apps or keeping a travel journal to record your expenses will help you adjust if needed and avoid overspending.

Take the next step

Follow these tips will help you manage your summer vacation budget effectively and enjoy a memorable and stress-free getaway. If you are struggling with debt or overwhelming financial stress, reach out to a Licensed Insolvency Trustee (LIT). An LIT has the knowledge to help you assess your financial situation and explore all your debt relief options — so you can choose which works best for your specific situation.