Have a “values talk” before your vacation. Before embarking on your trip, sit down as a family and identify what you really want to do while you’re away so that you aren’t mindlessly running around and spending money. Consider your values and talk about which past vacations have been most meaningful to you and why. (You may be surprised by the answers!) Focus on choosing activities that will create lasting memories—chances are, you’ll cherish them more than “stuff.” With this plan in mind, it will be easier for all of you to be more frugal about things you probably won’t remember two weeks from now.
Factor in some “down time.” While at first glance this may not seem like a money-saving tip, it actually is. When you pencil in some time to just hang around your hotel pool, for instance, by default you won’t be running around spending money. Plus, this gives you some breathing space to enjoy your family and just bask in the time you’re spending together—these are the moments true happiness is made of.
Pay in cash whenever you can. Research has shown that we spend roughly 15 percent more when we pay with a credit card as opposed to using cash. Of course, you’ll probably have to use a card when booking your airline tickets and reserving a hotel room, but once you get to your destination, plan to use cash. If you have to reach into your wallet and count out bills in order to pay for a meal or memento, you might just decide that it isn’t worth the money after all.
Look for cheap eats. If you’re driving, pack a cooler with sandwiches so that you don’t have to stop at restaurants along the way. Once you get to your destination, swing by a grocery store and pick up ingredients for quick and easy meals, like Pop Tarts, bread, peanut butter, and snack crackers. And for meals out, ask your hotel about coupons and early-bird specials.
Say no to cheap souvenirs. Just about every tourist destination on earth sells magnets, t-shirts, stuffed animals, coffee mugs, and other branded merchandise. Make a family pact not to spend money on this stuff (which, let’s face it, will probably be collecting dust on a shelf within a month). If you do purchase a souvenir, make it something your family will use and treasure; for instance, a local handmade craft you can display in your home. Before whipping out your wallet, try to make a habit of asking yourself, Does what I’m about to buy really matter to me, or would I rather put the money toward something more meaningful?
Start saving for next year. Once you’ve returned home from this year’s vacation, start saving for next year’s trip. (Not only will you be saving money; you’ll also be saving yourself future financial anxiety!) Cygan recommends using the Christmas club accounts used by banks in the 1960s as a model. Put a set amount into your vacation fund each week or month and make extra contributions from tax refunds, bonuses, or raises.
You can also involve your kids in your vacation club account by having them contribute a set amount of their allowance or birthday money. Create a colorful paper link chain, and add a link every time the fund increases by $20. The chain will become longer as the vacation gets closer. This is a great way to teach your kids the concept of saving over time for a goal—and to show them the satisfaction it brings!
Donna Skeels Cygan is the Author of The Joy of Financial Security: The art and science of becoming happier, managing your money wisely, and creating a secure financial future (Sage Future Press, 2013, ISBN: 978-0-989-77844-2, $24.95, www.thejoyoffinancialsecurity.com)
