Budgeting for Family Travel: Smart Ways to Save on Vacations

Wanderlust doesn’t have to end just because you’ve got kids. While traveling is a great way to bond and share memories as a family, it comes with a price tag. Airfares, hotel rooms, and meals add up when there’s three, four, or more of you. 

Here are some smart ways to save on vacation costs without sacrificing fun. 

How To Create a Budget for Family Travel

Like home renos, it’s easy for the cost of family travel to creep up. So, start by creating a budget.

That way, you’ll have a better handle on what you intend to spend, so you come home with memories — not an expensive credit card bill! 

Breaking down costs (flights, hotels, food, activities, and extras)

Let’s face it, travel can be expensive. Depending on where you go and the size of your family, on average, it could cost around $8,000 — or more. 

The first step in creating a travel budget is to break down all your costs. It doesn’t need to be complicated; a simple Excel spreadsheet or even pen and paper works. 

While preparation is key to creating a budget, it’s just as important to track your spending as you go, so you and your family can make adjustments in real time. 

Consider the following categories:

• Flights
• Car rental 
• Gas
• Accommodation
• Planned activities
• Meals out and/or groceries 

Beyond that, think of any miscellaneous spending, such as:

• Travel insurance
• Resort fees
• Seat selection fees or luggage fees
• Transportation to/from airport
• Costs associated with caring for pets or your home while you’re away
• Spending money for the kids 
• Taxis or Uber 
• Roaming charges 
• Gratuities 
• Foreign transaction fees

Make sure there’s a buffer in your budget to cover these unexpected items. Even small amounts can quickly add up.

Using travel reward programs to supplement your budget

If you’ve earned travel rewards through your credit card or loyalty programs, now’s the time to spend them! 

Credit card points can be redeemed for flights and hotels. For example, points from the Chase Sapphire Preferred® Card are worth up to 1.75x the value when redeemed through Chase Travel℠. 

Also, explore any transfer partners — those Chase points (or points from another travel card) could be worth 2x the value or more when you transfer them to a partner airline or hotel. 

READ MORE: How To Use Credit Card Points for Travel

Steps to Planning a Budget-Friendly Family Trip

1. Choose your destination carefully

The first step of planning a budget-friendly family trip is to choose your destination carefully.

You know the expression: “Champagne tastes on a beer budget.” Perhaps you’re dreaming of a week in Florence, Italy, but can only afford Florence, Alabama. 

Once you have a realistic budget in mind, start by researching destinations known for their affordability. 

Take into consideration all travel costs, including flights, accommodations, and eating out. Even though Vietnam is a cheap place to visit from North America, if it’s going to eat up your travel budget paying for flights, then you may want to rethink your destination. 

Keep these money-saving travel tips in mind:

Visit less-popular destinations

Consider traveling off the beaten path to places where your dollar will go further.  

Families in North America may want to consider parts of Mexico, Belize, Brazil, or Canada. If you’ve got your heart set on Europe, look at Macedonia, Serbia, Romania, or Poland. 

READ MORE: International Travel with Kids: Where to Go First (and What to Know)

Travel off-season

Saving on family travel shouldn’t mean travelling during monsoon season, but visiting when it’s not peak season can save you money — especially on flights.

Be flexible with your dates and search for off-peak or mid-season flights or all-inclusives to find a better deal. 

2. Save on family flights and transportation

Flights and transportation are likely to be one of your family’s biggest expenses. 

Here are some tips to help your money travel further: 

Book at the right time

If you’re planning to fly domestically, the best time to book is one to three months in advance. For international travel, more than three months in advance. 

Staying at an all-inclusive? Booking two to eight weeks ahead of time can save you money on a last-minute deal. 

Save with flight booking sites

Travel booking sites like Expedia, Skyscanner, and Priceline make it easy to hunt for deals, including flights and car rentals. 

Google Flights is also a great resource for price prediction and tracking prices, or use their “explore” function to search for cheap flights anywhere in the world. 

READ MORE: Tips for Finding Cheap Flights for Families & Saving Big

3. Find budget-friendly family accommodations

Hotels can take a big bite out of your travel budget, especially when you need to accommodate the whole family. 

Here are some ways to make your money go further: 

Save money with group accommodations

If you have a large family or want to double up with one or more other families on your vacation, then booking accommodations for a group instead of individual rooms is a great option. Not only can it be more affordable, but you’ll have more privacy to relax. 

Families have space to cook and eat together. The ability to cook meals will also save you money on eating out. Depending on where you stay, you could score a vacation rental with a private pool, access to the water, or a play area for kids. 

Find budget-friendly family resorts or hotels

Hostels aren’t only for backpacking students. If your next family adventure involves seeing more than one city (like a mini-tour of Europe), then staying at a hostel could be the way to go. 

Hosteling International offers more than 2,500 options, and you’ll find cheaper places to stay in the heart of major cities. Not only do hostels have private rooms for groups, but your family can also meet like-minded travelers. 

If hosteling isn’t for you, there are still plenty of budget-friendly hotel chains and resorts available. Compare prices on sites like Hotels.com or Expedia and look for stays where breakfast is included, or rooms with a kitchenette available to prepare simple meals. 

The beauty of an all-inclusive resort is that you won’t go over budget paying for meals, and there’s built-in entertainment or kids’ clubs available. 

Look for deals online, check for any hidden fees before you book, or plan your trip for low season to save on costs. 

READ MORE: How To Find Budget-Friendly Family Resorts & Rentals

Use loyalty rewards for free or discounted stays

If you’re a frequent traveler, consider signing up for a hotel loyalty program. 

IHG offers exclusive rates for members, and kids under 12 can stay and eat free at participating hotels. Marriott also offers this promotion at participating hotels. 

Rewards cards like the Chase Sapphire Preferred® Card and the Capital One Venture X Rewards Credit Card can be used to book top-rated hotels through either the card’s own travel portal or by transferring to hotel partners. 

READ MORE: How To Save on Family Vacations With Rewards Programs

4. Cut costs on family-friendly activities and dining

When you’re on vacation, you want to see and do as much as possible and try new-to-you foods. But all of that can add up if you’re not careful.

Here’s how to keep the costs down without sacrificing the fun:

Find family-friendly discounts

Many cities offer tourist or multi-attraction passes where families can see multiple sites for less. Have membership to specific programs or associations like AAA? You might be eligible for discounts to amusement parks and local attractions. 

Also, check out sites like Travelzoo or Viator for discounts, or shop with sites like Rakuten to earn cashback on booking family attractions. 

READ MORE: How To Find the Best Family Travel Discounts & Deals

Budget for kid-friendly activities

Depending on your destination, you might be surprised to discover how many free or low-cost activities there are for families. If you have little ones, look for local parks and playgrounds where they can run off steam or cool off at a splash pad. 

Many world-class museums and art galleries, including the British Museum, Smithsonian, Metropolitan Museum of Art, Musée d’Art Moderne de la Ville de Paris, and the National Art Center, Tokyo, are free to visit. Others may offer discounts on certain days. 

Wandering around a local market (especially in another country), exploring a state park, or attending a local music or cultural festival will also keep kids entertained. 

Manage food costs 

Trying new foods and checking out local restaurants is one of the appeals of travel. But you can still sample local flavors without blowing up your travel budget. 

Determine how much you want to spend on food and plan accordingly. If you aren’t staying at an all-inclusive, skip the touristy areas and look for less expensive restaurants where locals eat, opt for takeout, or visit the local market for a DIY picnic. 

Stock up on snacks and drinks if you’re sightseeing or at the beach. 

Staying at a vacation rental or booking a hotel with a kitchenette gives you flexibility to prepare your own food and save on costs — that way, there’s money in your dining budget to splash out on a memorable family meal. 

READ MORE: How To Manage Food Costs on Family Trips

5. Get travel insurance

While there are plenty of ways to save on your next family vacation, one item you shouldn’t skimp on is travel insurance. 

Adequate travel insurance protects you and your family from the unexpected — from a lost suitcase to a bout of food poisoning in a foreign city. 

Do your research and make sure you choose family travel insurance that has adequate medical coverage, trip cancellation and delay, and coverage for personal items. If anyone in your party has a pre-existing health condition, consider adding extra coverage. 

You can use a marketplace like VisitorsCoverage to compare policies and quotes from different providers. 

Finally, read the fine print! High-risk activities, such as zip-lining, skiing, or hot air ballooning, are typically not covered. If your family plans on doing these, buy travel insurance from a company that specializes in adventure activities, such as World Nomads. 

READ MORE: How To Choose the Right Travel Insurance for Family Vacations

Alternative Budget-Friendly Family Travel Options

Don’t let a tight budget stop you from making memories! Here are some ideas to get you started: 

Plan a family staycation on a budget

Staycations had their moment in the sun during the pandemic, and it’s still a great way to save money and be a tourist in your own backyard. 

But like with any holiday, create a budget ahead of time and decide on what you want to spend. 

All it takes to make the most of a family staycation is a little imagination and some planning:

• Look for cheap or free museums and other local attractions
• Check out a local festival 
• Plan on a picnic instead of a pricey lunch 
• Explore playgrounds, parks, or local swimming pools in a new neighborhood 
• Catch a movie or kid-friendly theater when tickets are discounted
• Take teens thrifting or visit a craft store and make something new
• If you live in a multicultural city or town, try a new food in another neighborhood 
• Camp out in the backyard 
• Splurge on a night at a local family-friendly hotel

RELATED: Best Family Road Trip Ideas

Take a family camping trip

A family camping trip is a wonderful way to get away for less. There are plenty of free and affordable campsites available across the U.S. For example, Koa has family-friendly campsites in many U.S. states and Canada. 

Depending on your budget, you can pitch a tent, hire a cabin, or go glamping. 

You also don’t need to be in the middle of the wilderness to get away. If you have small children, find a public site close to home, or camp out in your own backyard and sleep under the stars. 

To save money, you can:

• Borrow, rent, or buy gear second-hand
• Plan easy-to-cook meals
• Pack household kitchen items rather than buying new ones specifically for camping 

Mother Nature is its own playground. Keep the family engaged with nature walks, stargazing, watching the sunrise, telling ghost stories around a campfire, making s’mores, biking, or swimming. 

Many state parks also have information on things like kid-friendly hiking trails, free bike rentals, and nature centers for families to explore. 

READ MORE: National Parks Perfect for Family Adventures

FAQs About Budgeting for Family Travel

TL;DR: Smart Ways to Save on Family Travel

Family travel creates lasting memories and introduces your kids to other people, places, and cultures, but it shouldn’t come with a high price tag. 

Start with a realistic budget and prioritize what aspects of your vacation are most important to your family. Save money by comparing prices, booking ahead of time, using rewards points, and researching free or low-cost activities your kids will enjoy. 

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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.