Planning a Family Vacation Budget (Part One)

Key Considerations

Am I the only one who gets a rush in just planning a trip, whether I go on it or not…just me? Well, when you are ready to plan a trip (hopefully one you are actually taking), let me help make the process more exciting than painful – starting with budgeting.

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While a vacation budget is not the most exciting part of travel, it is vital to ensuring a positive experience before, during, and after your trip. Before you even write down the magic number of what you are willing to spend, there are some areas to consider first:

1. Start with Where You Are

Money can be a tender subject, and I always want to encourage financially responsible travel. If your family is working hard to get out of debt, I don’t recommend flying your family across the country, staying at an all-inclusive resort, and taking the most expensive adventure tour. Many budget travel options can still create amazing and lasting memories.

Take a good look at your finances. If travel is a priority for your family, but the money isn’t there right now, set up a sinking fund where you put aside a certain amount of money each paycheck for travel. Even $50 a month can add up and give you a chance to do a fun camping road trip or an opportunity to splurge on your closest theme park or adventure activity. If there is a big trip you want to take, start saving today. When it comes to financial responsibility, it’s important to curb impulsiveness and ignore the pressure to do it all now.

In the meantime, find less expensive ways to get out. There are so many local hikes, sites, and experiences to explore near where you are. You can consider these as “training trips” for kids to get used to walking and exploring, so when you have saved the money, they are excited and willing to walk, read, and learn at the location(s) you have selected.

2. Look at the Big Picture

When I get the travel bug (about 97% of the time), I jump on whatever is in my face. Flight alert? Sweet, let’s go to Nashville!  Did the neighbor just mention a camping trip? To the mountains, we must go! Are you clicking through photos of past family trips? I think it’s time to hit Disney again! However, these trip ideas can sometimes take me away from what is best and most appropriate for my family at the time.

To maintain a proper vacation budget and get the best bang for your travel bucks, it’s critical to look at the big picture.

Start with your non-negotiables: trips you’re going to make happen no matter what. For example, biannual family reunions, holiday trips to family members, or a business conference you always attend. How much will this cost you on average or how much have you set aside?   By getting those down first, it helps you get a feel for where your budget is already committed.

Next, consider the future. What are trips you want to take with your family in the next 5-10 years?  These can range from once-in-a-lifetime trips to hitting all the national parks in your state.  Get them all down. Discuss them with your family, and figure out a general timeline for where and when you want to travel. This will help you keep perspective and allow you to set up a financial plan to make those goals become reality.

Finally, look at your family make-up right now. A trip to Tulum sounds amazing, but if not all of your kids are independent swimmers and are still small they probably won’t be able to participate in all the adventure activities the area has to offer.  That isn’t to say you have to wait to travel with your kids. Just take into consideration their specific needs and levels of adaptability. I’d much rather travel somewhere less expensive that is a better fit for my kids than spend a large chunk of cash and feel like we missed out.

3. Do Some Sleuthing

Travel costs can be quite variable, so budgeting for a trip to Acadia National Park you want to take in three years can be tricky.  Will it cost $1,000? or $5,000? maybe even $10,000? Without doing some research, you’re kind of in the dark about what to expect and it will make it much more difficult to get you on the trip you’re dreaming of.

Start with what you do know now. Consider the following when planning for future your future vacation budget:

– What time of year would you like to travel to your destination?

– How will you get there and then get around?

– What type of accommodations will you need?

From there, do some quick searches on Google Flights and a hotel booking site like booking.com or Expedia. Search for dates around the time of year you will want to visit and the size of your family. This will help you get an understanding of the range of prices you can expect when you book your trip.

If you get sticker shock, consider the following:

– Were you looking at dates that are coming up soon? For example, if you want to travel in August (a year or more out), but it’s currently July, searching for flights for this coming August at only a month out, may give inaccurate data if you are planning on purchasing tickets early. Try searching for the upcoming May or June to give you a better idea.

– Maybe adjust your travel date plans. Summer months are almost always the most popular. Are you able to consider the shoulder season and look at April/May or September/October instead?

– Is there a cheaper way to get there? Drive rather than fly?

– Think about using credit card reward points. I am most certainly not a points travel hacking pro, but many out there are and can teach you their ways.

Why a Budget?

Having a good idea of where you want to go, what you want to do, and when you want to do it will help make travel planning and creating a vacation budget so much easier in the future. When you’re ready, head over to Part Two and get another step closer to a great family vacation.

What trip have you been budgeting for? How have you managed to set aside the money now for travel later?