How To Create a Family Travel Fund in 6 Steps

One of the first steps to organizing a family trip is building the funds to take one. 

Creating a family travel savings plan will ensure you have enough money for the vacation you want. 

It’ll clarify whether you can afford to go now or need to wait, the type of accommodation you can stay in, and the activities you can do.

Here’s how to get started with your own travel fund, so you can finally take that family trip!

1. Set Clear, Achievable Travel Goals

Goals should be SMART: specific, measurable, achievable, realistic, and timely. Keep these principles in mind when doing this exercise.

When do you want to go?

Can the funds be saved in time for this trip? If not, you might need to postpone the trip or change to a more affordable destination.

Unfortunately, the school holiday season is generally the most expensive, so keep this in mind when planning your budget.

If you have the flexibility to travel at another time, you can likely score much better deals. 

Otherwise, you can use travel apps and tools like Google Flight’s price tracker or Hopper’s Price Prediction tool to monitor flight prices and know when the best (and worst) times are to go.

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

Where do you want to go?

Narrow your travels down to the city, as the costs of visiting a destination can vary significantly between cities. 

For example, a trip to Paris will be more expensive than a trip to Montpellier, even though both cities are in France.

Check the costs of flights to that city.

Pro tip: You maybe able to find a cheaper fare by flying in or out of a nearby city, if that’s an option for you.

And don’t forget that if you collect travel rewards through your credit card, you can redeem them for discounted or even free flights. 

When searching fares, check the price in cash and the price in points — you may find that with just a bit more of your regular spending over a few more months, you can earn enough points to save big.

READ MORE: How To Earn Credit Card Points Fast for Travel

Where do you want to stay?

Consider whether you want budget, mid-range, or luxury accommodations. Also decide whether you prefer hotels, resorts, or home-style accommodations like an Airbnb. 

Once you know these factors, you can use search engine sites like Booking.com to filter based on your preferences. Be sure to compare prices on a few different booking websites, as well as if you were to book directly with the hotel.

Your credit card may offer its own travel portal, such as Chase Travel℠ or Capital One Travel, where you can also search hotel prices — both in cash and in points.

Keep in mind that how long you stay will significantly impact your accommodation costs, especially if one night costs a few hundred dollars.

READ MORE: How To Save Money on Flights and Hotels

What do you want to do?

Browse activities in your chosen city and whittle down to the top ones you would love to do and need to budget for. 

You may also want to budget for extra activities that aren’t advertised or that you find out about when you get there.

RELATED: How To Find the Best Family Travel Discounts & Deals

Miscellaneous costs

Consider airport transfer and other travel-related costs, such as taxis or public transport. Destination guidebooks or the destination’s tourism website can provide a rough estimate.

Add travel insurance costs for each family member — you can get a quote online within minutes. Gather quotes from a few different insurance companies or use an online marketplace like VisitorsCoverage to compare.

Other costs to consider include souvenirs, meals out, and roaming fees or a travel SIM card for your phone.

2. Break Down the Numbers 

Add up all the approximate costs in step no. 1 for an estimated grand total. Now, you can work backwards to determine how much you need to save each month to reach your goal.

Monthly saving goal = Total costs divided by the number of months until your trip

For example, if the total cost of the trip is an estimated $5,000 and there are 12 months until your preferred date, the formula would be $5,000/12 months. 

So, your monthly savings goal is $600

Ideally, add a buffer to provide extra comfort and cushion.

READ MORE: How To Budget for Family Vacations Without Overspending

3. Automate Savings to Make It Effortless

Who doesn’t love some automation in their life? You can automate your travel savings to reach your goal faster with little effort and without even noticing

It just requires a little setup at the start. 

High-yield savings account

Open a high-yield savings account and automatically transfer an amount from your bank account to this account regularly — daily, weekly, monthly — whatever works best for you. 

Let it build from there without lifting a finger, and let compound interest work for you over time to grow your savings.

Some banks, like Ally and the SoFi Checking and Savings Account, offer “buckets” or “vaults” that make it easy to allocate funds for specific goals, so you could create a dedicated “Disney Fund” bucket, for example.

Round-ups

Some accounts let you round up your spending, so that any spare change goes toward your savings.

The SoFi Checking and Savings Account, Ally, Acorns, and Qapital are just a few examples.

Budgeting apps

A budgeting app can help you track and categorize your spending. 

For example, Quicken Simplifi lets you create savings buckets where you specify different amounts and timelines for certain goals.

Some apps, like Emma, suggest areas and ways you can save money based on your spending. These suggestions include discounts, cheaper internet service, and retailer deals.

Cashback apps

Apps like Rakuten give you money back whenever you make a purchase. 

If it’s something you were going to buy anyway, you’re coming out ahead. Once you get the cash, deposit it into your travel savings fund, so it doesn’t accidentally get spent elsewhere.

4. Cut Daily Expenses Without Sacrificing Joy

Even small, simple switches can help boost your savings:

• Switch to generic brands, which are lower in cost. 
• Buy essentials in bulk or when prices are heavily discounted. You will need them eventually, so bag the savings now and thank yourself later.
• Check for unused subscriptions and cancel them. Consider keeping only one streaming service that you use the most.
• Take advantage of the library, where you can access movies, DVDs, books, magazines, and more.
• Contact your service providers for phone, internet, insurance, etc. Ask if they can offer a better deal — especially if you’ve seen one with a competitor. They may offer a better deal to entice you to stay.
• Use gas price comparison apps.
• Buy second-hand clothes. Some can be as good as new for a fraction of the cost.

5. Boost Your Savings with a Side Hustle

There could be money in the things you have sitting idle at home. 

By selling or renting them out, each dollar you get in return can go towards your savings, and you may be surprised at how quickly the funds can add up. 

For example, you could rent out baby gear on BabyQuip during non-travel months or sell unused toys or clothes on Facebook Marketplace.

You may also be able to put your skills to work with a small side hustle:

• Is there something you could teach for a couple of hours a week or once a month? Bonus if it’s an activity your children can participate in, like pet sitting, photography, fitness classes, music lessons, or online teaching. 
• Is there a service you could provide online in your spare time after the kids are in bed, such as graphic design, social media management, or bookkeeping?
• You may be great at handmaking products that you can sell, such as greeting cards, jewelry, or soap.

6. Involve Your Kids: Turn Saving into a Game

Lastly, get some help from the kids. For example, you could help them learn about saving money and how it’s earned by paying them for household chores — and encouraging them to put that money towards the family trip.

Getting them involved builds their excitement for the trip, and it’s one less expense off your shoulders. 

Here’s how to do it:

1. Let them choose an expense they can save for the vacation as their “reward.”  Give them a savings jar to place their money in.
2. They can earn their money by helping you with housework that is outside of what they normally do.
3. Use a fun and colorful visual chart to track their progress.
4. Motivate them by matching their savings. For example, you can add $1 for every $5 they save.

When shopping together, you can also talk to them about price comparisons so they can start thinking about how much money they can save by choosing the lower-cost option. 

Throw in some math by asking them, “If this package of cheese is $6, but we buy this different cheese that’s on sale for $4, how much are we saving?” Then, give them the $2 difference to put in their jar.

If you would like more inspiration, money apps that are catered to teaching children about money include Greenlight and GoHenry by Acorns.

FAQs About Saving for Family Travel

TL;DR: How To Save for a Family Vacation

Family vacations can be expensive, but there are easy ways to save for one, provided you’re clear about your goals. 

You can even build funds in the background with tools like a high-yield savings account, cashback apps, and budgeting programs.

Saving doesn’t have to be a slog — it can even build excitement for a trip, especially when you involve the kids. As you gradually move towards your savings goal, you also get closer to your trip, which makes it all the more rewarding!