Five Financial Tips for Vacation Planning

Spring is finally here and summer is just around the corner, making this an ideal time to start thinking about summer vacation plans. Finding a vacation you can afford as well as enjoy can be tricky but, with a little planning, it’s possible to not break your budget on your summer holiday.

Stressing about finances is the last thing you want to do while on vacation. That’s why it’s important to take a few steps to make sure you don’t have a financial surprise that breaks your relaxation.

Following are five tips you can use to make your vacation affordable and relaxing.

1. Set a budget. With anything related to finances, budgeting is critical. Do some research online to come up with an estimate of what your vacation will cost. This amount will be your budget. Once you have settled on that amount, stick to it. Don’t keep adding new activities that will derail you financially.
2. Start a travel savings account. Contact Iowa State Bank to set up a specific savings account for your vacation and put something aside monthly. With these savings out of sight and out of mind, you will know your vacation funds will be available when it’s time for your trip. Figure out how much you need to set aside each month, and make it a habit to contribute that amount to build up your savings. After your trip, keep contributing to your vacation savings account to get a head start on next year’s vacation.
3. Cut back on spending before your trip. About three months before your trip, take a look at what you can temporarily cut out of your budget that will help you save for your trip. Entertainment expenses are a key category where you can find some last-minute savings. Whether you eat out less during those three months, skip the extra coffee runs or put off seeing a few new movies at the theater, the savings can add up quickly.  
4. Use prepaid debit cards or credit cards. Once you have your savings built up, consider loading those funds on a prepaid debit card. This will allow you to make sure you don’t go over budget as your full budget will be loaded on that card. You can also keep track of all of your expenses using a credit card, then use the funds from your vacation savings account to pay for the trip all at once. If you have a rewards credit card, you may also be able to earn cash back on your trip.
5. Monitor your accounts. Let your bank or credit card issuer know that you’re going on a trip so they don’t flag any of your purchases as suspicious. While on vacation, keep monitoring your accounts for any fraudulent or suspicious activity to prevent becoming a victim of identity theft.

More Information

To learn more ways you can save for your vacation, contact your local Iowa State Bank office.