Going and seeing new places around the world is a dream of many, but rising costs in recent years have made it more challenging. With these rising prices showing no sign of slowing down, satisfying your travel bug is increasingly difficult. Learning how to create a budget so that you can still take a vacation, either with yourself or your family, can ensure you save money while still having fun.
How Much Does the Average Vacation Cost?
It’s one thing to hear about how prices are rising for vacations in the modern day, but it’s another to actually see the numbers for yourself. The average cost of a one-week vacation in the United States, for a single person alone, has now reached above $1,500. While some factors such as accommodations may stay relatively constant if you travel with your family, the other factors involved with this price fluctuate heavily depending on the number of people traveling. This means a family of four may need to spend as much as $6,000-$7,000, at a minimum, for a week-long vacation.
Primary Factors of a Budget to Plan
The above-mentioned price for the modern vacation is made up of a number of smaller prices in different categories. For example, those planning a vacation to Myrtle Beach need to take into account a number of different factors ranging from hotel costs to flight costs. Going more granular, there are four major categories in a vacation budget:
- Accommodations
First and foremost, one of the largest budgetary items to consider when planning your vacation is accommodations. Generally, a person has two options to consider: hotels vs. vacation rentals. Vacation rentals are short term rentals for houses or apartments that people can stay in, having been popularized by Airbnb. For larger families, a vacation rental can often be cheaper than needing to book multiple hotel rooms.
- Transportation
As you think about your vacation budget, the transportation to your destination will be another major expense. Think about whether flying to your destination is worth the price or if it makes more sense to simply drive to your destination. Additionally, think about the transportation costs once you actually arrive at your destination. Consider using public transportation instead of ridesharing services once you arrive to save money.
- Food
Food is another major expense category in vacation budgets, and one that tends to add up quickly. If you are staying in a vacation rental or have access to a kitchen, consider cooking food for you and your family instead of eating out for every meal. This will help you save hundreds of dollars on your vacation if you are able to.
- Activity and entertainment
Finally, the last major category of expenses that a vacation budget will have is activities and entrainment. To save money in this category, consider booking all of your activities in advance to see if there are any discounts for signing up early. Buying tickets at the door to anything will likely be more expensive and purchasing early allows you to use credit card reward points or coupons that you may have.
Tips for Building an Effective Modern Vacation Budget
Identifying the four primary categories for a budget are only half the battle. To actually build a budget that allows you to save money while also having fun on vacation, there are a number of important tips that everybody should follow:
- Set up a vacation savings account well in advance that you make monthly deposits into over time
- Use credit card rewards points for flight costs, activity costs, or various entertainment costs
- Create your itinerary well in advance to reduce the likelihood of spending spur of the moment funds on items
- Book your transportation tickets at strategic times where prices are significantly lower
- Cut down on various expenses in the months leading up to your vacation to give yourself more discretionary funds
- Allot extra funds for hidden travel fees such as parking fees, resort fees, various tips for service, baggage fees, and more
The Bottom Line
While not everybody has the travel bug, there will undoubtedly be a point in time where you find yourself needing to travel for a variety of reasons. Considering just how much transportation and accommodation costs have grown in recent years, learning how to establish a budget so that you save money on your trip can make you feel better about the vacation on your calendar.
