5 Ways to Vacation on a Budget

You need a break—a getaway to a unique destination you haven’t been to before. Somewhere you can lounge by the ocean, climb a lighthouse, or hike in the mountains. It’s time to start budgeting for an affordable and fun family vacation.

It’s no secret that traveling costs money, but the good news is that there are plenty of ways to cut expenses while still ensuring an enjoyable experience. From setting a budget to picking the right dates, learning how to vacation on a budget can help you save serious cash.

Ready to start planning? Check out our guide for five vacation-on-a-budget tips for you and your family. 

1. Start with a budget 

First and foremost, setting a budget is a crucial step when planning an affordable vacation. Look at your fixed costs, like lodging and flights, and things you know you must spend money on. Then, create a hard budget, accounting for the length of the trip and everyone going.

Other expenses to consider are:

• Variable: These costs include food, entertainment, or souvenirs, where the amount you spend will vary depending on your trip. Think of ballpark ranges for variable expenses, like $100 to $150 for souvenirs for the whole family, for example.
  
  
• Emergency: Set aside some money for emergencies. If someone gets sick or injured during your trip, or if you experience car issues, that’s an extra cost. If you have an emergency fund, you should be able to cover some or all of the expenses.

A straightforward way to create a spending plan for costs like food and gas is to purchase gift cards through RaiseRight. Buy the denomination you anticipate needing for your vacation, and stick to that amount to stay within budget. 

Read more: Smart Strategies for Saving Money at the Gas Pump

Prioritize brands or services that offer a better deal

Additionally, consider some of the following tips to score a better price for your travel expenses:

• Buy package deals that include flight, hotel, and/or car rental
• Opt for a lower-cost airline, such as Southwest Airlines 
• Browse third-party sites like Hopper or Hotels.com to find lower rates

You can also get a discount on all bookings by planning your trip around brands available on RaiseRight, such as:

• Disney 
• Airbnb
• Carnival, Royal Caribbean, or Princess Cruises
• Hilton, Sheraton, or Best Western hotels 

Browse all 40+ travel brands on RaiseRight.

What about transportation? 

Transportation costs will vary depending on how you travel to your destination and how you travel once you arrive. As one Reddit user points out, "When possible (and if you have time) opt for public transport instead of Uber/taxi. In many countries, public transport is ridiculously cheap."

2. Use travel rewards 

Travel rewards can add up fast—especially when you know how to earn them. If you have a credit card with travel rewards, start earning them in advance so you can cash them in for flight or hotel discounts.

You can also enroll in rewards programs for your favorite hotel chains or airlines. With each reservation you make, you can earn points to put toward discounted flights or free hotel nights.

In fact, some people earn enough points to pay for most of their trips, like Reddit user u/SnarkandStormy: "Run all your bills and expenses through a good travel reward card and pay it off completely every month. My husband and I just booked our anniversary trip to Mexico completely with points."

3. Research international exchange rates 

With international trips, consider the exchange rate of the US dollar to other currencies. Exchange rates change often, making research crucial before selecting a destination. That said, several countries that usually offer the most for your money include:

• Mexico
• South Korea
• Peru
• Hungary
• Vietnam
• South Africa
• Japan

Once you’ve chosen a location, consider how you’ll exchange currencies. For the best rates, withdraw cash from your bank or credit union instead of a currency exchange provider in your destination country. 

4. Travel off-season or on "odd" days 

Spring break, summer, and winter holidays are some of the most popular travel times, so they hit your wallet harder. Vacationing during the off-season and off days (i.e. weekdays instead of weekends) can help you keep costs down.

Flying or staying on “odd” days can also be a cost-saving measure. For example, traveling from Wednesday to Tuesday may be cheaper than traveling from Friday or Saturday to Sunday. 

5. Book hotels and flights in a timely manner 

The earlier you start booking your trips, the better. General guidelines for how early to book include:

• Domestic flights and hotels: One to four months in advance
  
  
• International flights and hotels: At least six months in advance

To stay on top of pricing, download flight and hotel tracker apps. Many apps will compare hotel and flight costs for you and even notify you when the price drops to ensure you get the best deals possible.