How To Budget for Family Vacations Without Overspending

Cost is probably your first concern when planning family travel. Fortunately, there are ways to keep your spending in line while still creating lasting memories with your family. 

A family travel budget can help you keep your finances in check without sacrificing fun. 

Identify how much you can spend without neglecting other financial goals. Then, create a realistic daily budget (while considering unexpected costs that can arise) and look for cost-saving tips to get the most bang for your buck. 

Steps to Create a Family Vacation Budget

Setting a family vacation budget is like creating any other budget. You need to know your starting point and end goal, but leave some room for flexibility.

Here are three steps to get you started: 

1. Define your travel goals

As you plan your family trip, whether it’s for two people or 10, figure out your top travel goals.

Are you looking for adventures like skydiving or bungee jumping? Do you hope to experience a different culture? Or is it all about relaxation?

You can pick more than one goal, of course, but then you’ll need to balance them all out. You probably won’t do it all in one trip. 

2. Calculate costs for key categories

Look at the main travel categories:

• Flights (or gas, if driving)
• Accommodations
• Food and drink
• Transportation (rental car, train, public transport)
• Activities
• Miscellaneous spending such as souvenirs
• Pet care (boarding fees if you leave Fido at home)

Come up with a rough estimate of these costs in your preferred destination. 

You may also want to change destinations to save money — the closer you are, the less you’ll need to spend on gas or airfare.

3. Include an emergency fund

Emergencies still happen on vacation. Reserve funds for things you hope won’t happen, like medical issues or flat tires. 

Also consider travel insurance, which can protect you in case of lost luggage, delayed flights, and more. 

If you’re not sure where to start, you can browse an online platform like VisitorsCoverage or SquareMouth and compare policies.

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How To Track Expenses During Your Trip

Budgeting ahead of a vacation is smart, but monitoring your spending while you’re traveling is just as important. 

• Use budgeting apps: Find a budgeting app like Goodbudget or PocketGuard that allows you to plan your spending in advance or even input transactions on the go, so you don’t need to worry about going over budget. 
• Set a per-day spending limit: Take your total trip budget and divide it by the number of days (although flights will be separate). Then, set up spending alerts on your credit card or bank account, so you’ll know when you approach or surpass your limit. You can give older kids a per-day spending limit, too. 
• Record all purchases: Whether you use an app or a tiny notebook you carry around, hang onto receipts and note every purchase you make. If going over budget isn’t a big concern, you can check receipts or credit card transactions once you return.

If you’re not in the mood to track spending during vacation, one way to stay in line is to book an all-inclusive trip instead. This way, nearly all costs are wrapped up in your total, so you can pay upfront and then relax. 

READ MORE: How To Find All-Inclusive Resorts for Families

Tips for Saving Money on Family Vacations

Following a budget is great, but don’t forget there are also money-saving tips to ease your vacation spending. 

Use travel rewards and credit card points

I love credit card rewards for saving on travel. If you’ve got a card like the Chase Sapphire Preferred® Card or Capital One Venture X Rewards Credit Card, you can rack up points for everyday purchases, then redeem points for free flights and hotel stays. 

The Sapphire Preferred, for example, lets you earn elevated rewards on travel purchases and 25% higher point redemption value on Chase Travel^TM. 

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Travel during the off-season

If you’re able to, travel during off-peak times. Flights and hotels will nearly always cost less midweek or during seasons that aren’t considered ideal. 

For example, you could decide to go to Europe between November and March. It might be chilly or rainy, but you’ll save money and avoid stifling crowds.

Airline search platforms like Google Flights show you prices across various dates, so you can easily see the cheapest times to fly. 

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Book accommodations with kitchens

One of my favorite money-saving family vacation tips is to stay somewhere with a kitchen, or at least a kitchenette. It’s helpful if you can prepare meals on your own (you might get tired of eating out, anyway). 

You don’t have to make everything from scratch, but cooking in a vacation rental for a percentage of meals makes it that much more special when you go to restaurants. 

Look for free or low-cost activities

You can find exciting activities for free — and when multiplied over several family members, that cost savings really adds up. Family-friendly destinations often have plenty of outdoor spaces like parks and trails to explore. 

There are free museums as well. For example, in Washington, D.C. your family can explore the National Zoo and all Smithsonian museums for free. 

Other locations might not be free, but you can look for discounted admission days. On some trips, you might find it more cost-effective to purchase passes that give you access to multiple attractions for one flat price. 

READ MORE: Tips and Tricks for Saving Money on Travel

Common Budgeting Mistakes Families Make

Make sure to avoid these pitfalls in your family vacation budget.

Underestimating food and transportation costs

Don’t focus all your budgeting efforts on flights and hotels. Those are big, but other smaller purchases will add up and could take you over budget if you’re not careful. 

Plan to pay for snacks, tips for service workers, local transportation to and from your daily activities, and other miscellaneous costs. 

Not accounting for hidden fees

Resorts and certain hotels may tack on hefty resort fees or destination fees, often on a per-night basis. Extra taxes on bookings can also put a dent in your budget. 

If flying, you may have noticed that economy airlines tend to charge higher baggage fees. So when booking flights, remember that while the fare may look cheap, baggage fees could cancel out any savings. 

READ MORE: How To Avoid Hidden Fees When Traveling

Overpacking the itinerary

I know! You want to see as much as you can, in case you never return to this destination. But avoid the temptation to overschedule yourselves. 

Not only is a packed schedule stressful, but you may find you don’t even want to do all the things you planned, and your costs will inflate unnecessarily. 

READ MORE: Family Travel Planning Tips for Unforgettable Vacations

How to Adjust Your Budget if Plans Change

Sometimes you’ll need to change plans mid-vacation, whether it’s because of overspending or unexpected expenses — like your hotel was overbooked when you arrived or one of your kids got sick and you couldn’t do the tours you prepaid for.

• Reallocate funds: Be ready to pivot and put money earmarked for something else toward the essential expenses. 
• Use travel insurance: Coverage through an insurance company or your credit card can reimburse you if you have to cancel (for covered reasons), your luggage is lost, your rental car is damaged, or your flight is canceled. 
• Cut back on non-essentials: If spending gets out of hand, it’s time to tighten your budget. Cut out non-essentials like souvenirs, treats, and attractions to get back on track. 

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FAQs About Budgeting for Family Vacations

How much should I budget per day for a family vacation?

A daily vacation budget can vary a lot from family to family. Start with the total amount you’re willing to spend and divide the cost by the number of days to get an estimate. 

You might subtract flights and lodging and focus your daily budget on other costs like attractions and meals. 

What are the best ways to save on family airfare?

Traveling during off-peak times is a great way to save on airfare. You can also redeem credit card rewards for free flights or sign up for an airline loyalty program. 

How do I balance a tight budget with meaningful family experiences?

Remember that a memorable family vacation doesn’t hinge on spending a lot of money. Consider individual family members and what will be fun and meaningful to them, then take a realistic look at your budget. 

TL;DR: Managing a Family Vacation Budget

You don’t want to stress about money before, during, or after a family vacation. 

By setting a budget and prioritizing your travel goals, you can avoid turning your trip into a debt trap. Track your spending in real-time, use rewards programs, and protect yourself with travel insurance so you can enjoy your vacation and make great memories.

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Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.