How To Start A Family Vacation Fund
Starting a travel savings account has never been easier or more necessary! Did you know that, according to the Family Travel Association (FTA), 85% of parents are planning to travel with their children in the coming year?
Of the remaining 15% of parents who do not plan on taking a family vacation, 72% of them say the main reason for not traveling is cost.
Why Start A Travel Savings Account?
We can all agree that inflation stings. And of the many sacrifices required to make up for the increased cost of living in 2023, spending quality time with your family on vacation doesn’t have to be the lowest-hanging fruit.
Taking vacations together as a family accelerates the development of children, fulfills their creativity and curiosity, and fosters lasting connections.
I am here to inspire you to make traveling with your family a higher priority!
Best Tips On How & Why To Start A Travel Savings Account
Starting a travel savings account is important for you because it enables you to allocate funds specifically for your travel goals. It helps you prioritize and save for travel, making your dream trips more achievable and rewarding.
1. Set Clear Travel Goals
Setting clear travel goals is crucial when starting a travel savings account. Ask yourself what you hope to achieve with a travel savings account. Do you want to:
💰 Travel to a specific destination?
💰 Book that dream family vacation?
💰 Create a long-term travel plan?
Whatever your travel aspirations, having concrete goals allows you to track your progress, stay focused, and make informed financial decisions.
Tip: Ask your kids where they’d want to travel. What would they want to do when they are there? Inspire them to join you in goal-setting so you can follow the remaining steps together as a family. Make this travel savings account a team effort.
2. Assess Your Budget
Assessing your budget is a critical step when starting a travel savings account. By carefully examining your finances, you can determine a realistic amount to allocate toward your travel savings each month.
According to a recent survey taken by Forbes, a family of four will spend an average of $3,600 in 2023 for vacation.
If that is the case, that is $300 a month for 12 months. Break it down further, and that is an average of $900/per person in the family.
We are a family of five, so that means we could save $900 x 5 = $4,500. Divide that by 12 months to save ($375) and we have a realistic amount to set aside for an annual trip with your family.
Not convinced spending that much is worth it? The investment you are making for your family will return tenfold: Benefits of Family Travel
NOTE: It’s important to strike a balance between saving for your travel goals and maintaining a stable financial situation. By setting aside an achievable amount, you can consistently contribute to your travel savings without compromising your financial well-being. Win-win!
3. Supplement Your Savings
You may be starting to panic at the thought of setting aside a chunk of money monthly for your next vacation. Take a deep breath. You can do this.
Supplementing your savings with additional sources of income can significantly boost your travel savings. There are tons of opportunities to earn extra money!
Here are some ideas for earning extra money to contribute to a travel fund:
- Freelancing: Offer services in your field on a freelance basis.
- Part-time or seasonal jobs: Take on flexible employment opportunities.
- Online surveys and microtasks: Sign up for paid surveys or complete small online tasks.
- Rent out a spare room or property: List it on platforms like Airbnb.
- Sell unused items: Declutter and sell items online or locally.
- Offer services in your community: Provide services like pet sitting, tutoring, or organizing.
- Create and sell crafts or handmade products: Utilize your creativity to make and sell items.
- Participate in focus groups or research studies: Get compensated for your time and opinions.
Remember, every little bit adds up! Nick and I have worked really hard to create multiple streams of income over the years: selling health supplements, earning royalties from books we’ve written, and (now) this travel blog!
By actively seeking and seizing opportunities to increase your income, you’ll be able to supercharge your travel savings and bring your dream trips within closer reach (it’s closer than you think!)
4. Choose The Right Travel Savings Account
Picking the right savings account is super important when you begin saving for your travels. Spend some time looking for an account that matches what you need and want.
Think about things like how much money the bank will give you for keeping your savings there (interest rates), how much they charge you for using the account (fees), if it’s easy to get your money when you need it (accessibility), and if there are any special things that can help you save better.
Banks on the internet can be a good choice because they usually give you more money for your savings and have tools that can help you save for what you want.
A few travel savings account options to consider:
High-Yield Savings Account: Popular for specific goals like travel, these accounts offer higher interest rates than traditional savings accounts, enabling faster growth. Look for accounts with minimal fees and convenient access to funds.
Money Market Account: An alternative choice, money market accounts typically provide slightly higher interest rates while offering liquidity. They often include check-writing capabilities and debit cards for easy fund access.
Dedicated Travel Savings Account: Specialized accounts designed for travel savings may offer additional benefits like travel-related rewards, discounts, or partnerships with travel companies. Explore these accounts for unique features that align with your travel goals.
Remember to compare terms, such as interest rates, fees, and withdrawal options, when selecting the right account for your travel savings.
5. Automate Your Savings
Automating your savings is a powerful strategy to ensure consistent contributions to your travel savings account.
Whether it’s cold feet or a forgettable mind, telling your money where to go on AUTOPILOT is the best way to save for your next vacation.
Every once in a while, like every month or every two weeks, a certain amount of money will be moved from one account to another. This helps you develop a good habit of saving money regularly and being disciplined about it.
You don’t need to remember to save because it happens automatically. It makes saving easier and ensures that you’re regularly putting money aside for your travel goals.
This automated approach helps remove the temptation to spend the allocated funds elsewhere and ensures that you steadily build your travel savings over time, bringing you closer to your desired adventures.
6. Track The Progress of your Travel Savings Account
Tracking your progress is a vital step in managing your travel savings. Consistently monitor your savings and regularly review your account balance to gauge your proximity to reaching your travel goals.
These small steps in the right direction will motivate you to keep working hard and visualize the vacation ahead. Stay on track.
By this point, you may have a clearer picture of the actual costs of the upcoming adventure. Adjust your savings strategy if necessary and celebrate milestones along the way.
Ultimately, tracking your progress keeps you engaged and focused on successfully achieving your travel goals.
7. Minimize Spending to Maximize Savings
Saving more money for travel is important. You can do this by finding ways to spend less on things that aren’t necessary and using the saved money for your travel goals.
Try to see where you can cut back on spending, like buying less unnecessary stuff, eating out less often, or doing cheaper activities for fun. Even small changes in how you spend your money every day can add up to a lot of savings over time.
Here’s a bullet list of practical ideas to spend less money and save more:
- Create a budget and track your expenses.
- Differentiate between needs and wants before making a purchase.
- Plan meals in advance and make a grocery list to avoid impulse buys.
- Comparison shop for the best prices before making a purchase.
- Use coupons, discount codes, or loyalty programs to save money.
- Cancel unnecessary subscriptions and memberships.
- Delay impulse purchases by waiting at least 24 hours before buying.
- Prioritize quality over quantity when purchasing items.
- Borrow or rent items instead of buying them.
- Practice mindful spending by aligning purchases with long-term goals and values.
Make savings a priority. Cut back where you can and know the sacrifice you are making by saying NO to a want today will enable you to go on vacation very V E R Y soon. You got this.
8. Stay Disciplined and Committed
Staying disciplined and committed is crucial when building a travel savings account. Maintain the self-control to resist the temptation of dipping into your savings for non-travel-related expenses.
Remind yourself of the incredible adventures and enriching experiences that await you once you achieve your savings goals. Visualize the destinations you desire to explore and the memories you’ll create.
Develop a mindset that prioritizes your travel aspirations and resists impulsive spending. By staying focused and dedicated, you can safeguard your travel savings, ensuring that your hard-earned money is allocated exclusively to realizing your travel dreams.
9. Research and Plan Ahead
Doing research and planning ahead is very important when you’re saving money for your travels.
Take this time to learn about the places you want to visit, like their famous attractions and the unique things about their culture. Make plans for your trip, including the places you want to see and the things you want to do.
We’ve done the research for you!
🛎️ Book affordable hotels: Best Deals
🗺️ Book amazing tours: One-Of-A-Kind Experiences
🚗 Reserve car rental ahead: Book Now
✈️ Snag the best flight price: Browse Flights & Save Money
Figure out how much money you’ll need for things like plane tickets, places to stay, transportation, food, and activities. Planning like this will keep you excited about your future adventures and help you make smart choices with your money.
If you are taking a road trip, don’t forget these essentials: Road Trip Essentials
By knowing exactly how much you’ll need, you can set goals for how much money to save, adjust your budget, and make sure you save enough for the experiences you want to have on your trip.
10. Utilize Reward Programs
To make your travel savings grow even more, you can join travel rewards programs. These programs are offered by airlines, hotels, and other travel companies.
When you use these programs wisely, you can earn points or miles that can be used to pay for your travel expenses. This can help you save money and make your trips less expensive overall.
Here are a few top-rated travel reward programs to join:
- Marriott Bonvoy: Loyalty program by Marriott International.
- Southwest Rapid Rewards: Loyalty program by Southwest Airlines.
- World of Hyatt: Loyalty program by Hyatt Hotels.
- Delta SkyMiles: Frequent flyer program by Delta Air Lines.
- Amex Membership Rewards: Credit card rewards program with multiple airline and hotel partners.
- Hilton Honors: Loyalty program by Hilton Hotels.
Before joining any program, it’s a good idea to compare them and see which ones give you the most benefits. Check how many points or miles you can earn, how you can use them, and if there are any fees.
Our first big family road trip was to Texas from Florida (a 17-hour drive) and we used travel programs for the hotels: Road Trip To Texas
11. Enjoy The Journey!
Saving for travel is not just about reaching a financial goal; it’s an exhilarating journey in itself. Embrace the process of saving, relishing each step along the way.
Take pleasure in the anticipation and excitement of your future trips, immersing yourself in the joy of planning and imagining the experiences that lie ahead.
Remember that the effort and dedication you put into saving will make your travel experiences all the more rewarding.
Every dollar saved is a step towards fulfilling your wanderlust, making your adventures even more meaningful and unforgettable. Enjoy the journey and savor every moment of your travel savings endeavor.
FAQs: Travel Savings Account
Starting a travel savings account doesn’t have to be hard. Set clear goals, assess your budget, choose the right savings account, and automate your savings to make it easier and more achievable.
✅ What is a good budget for a family vacation?
According to Forbes, the average travel budget for a family of four is $3,600. However, the ideal budget for a family vacation varies depending on factors like the destination, duration, and activities.
✅ What is the cheapest vacation possible?
For an inexpensive family vacation, consider camping in national parks or renting a vacation home instead of staying in hotels. Road trips are also a great option for affordable travel! Look for destinations with free or low-cost attractions, like beaches, hiking trails, or local museums.
✅ Are family vacations worth the money?
Absolutely! Family vacations are totally worth the money because they give you special chances to spend time together, make awesome memories, and try new things. Having fun adventures and exploring together makes family vacations a great investment in making strong bonds and creating memories that will last a lifetime.
✅ Is $5,000 dollars enough for a vacation?
Yes, $5,000 can be enough for a family vacation, but it depends on where you want to go and what you want to do. Some destinations and activities can be expensive, while others are more affordable. It’s important to plan and budget wisely to make the most of your money.
Conclusion: How To Start a Travel Savings Account And Why You Need One
Starting a travel savings account is important because it helps you save money for exciting trips.
First, set clear travel goals, like where you want to go and what you want to do. Then, assess your budget to see how much you can save each month. Choose a savings account that suits your needs and set up automatic transfers to save regularly.
Remember to track your progress and celebrate milestones. By saving money, you can make your travel dreams come true and have amazing adventures with your family.
Maybe we will see you out there!
