Winter Break that Doesn’t Break the Bank
Staying within a budget is like sticking to a diet. Just like dieting comes down to the difference between calories consumed and calories burned, a successful budget is about balancing money earned and money spent. But like dieting, budgeting effectively is easier said than done. It takes a lot of discipline and can bring up complicated psychological and emotional issues that have to be navigated. And like dieting, there are no quick fixes or one-size-fits-all solutions. You need to figure out a system that works for you as part of your unique lifestyle.
But budgeting is often easier than people think, once they take the time to think clearly about their finances and intentionally plan for a more secure financial future. The best gift money can buy is not a new car or a five-star vacation—it is the ability to lead a financially secure life within their means and consistent with their values.
And this time of year is especially fitting for this conversation.
Winter break can be a great time for families to relax, spend time together and explore new destinations. It can also be a tough time financially. Whether you plan to travel internationally, visit family, or staycation and play tourist in your hometown, the key is to be thoughtful about what is important to you, and to plan ahead by setting a budget and saving toward it.
Your vacation budget will depend on some things that are in your control (where you are going, how long you plan to stay, and what you will do) and some things that are not (like how big your family is and what you can afford). It’s important to discuss priorities and tradeoffs with your spouse and (at a different level) with your children. How much does this vacation mean to your family compared to your other financial goals? How much money are you willing to spend on this trip at the expense of saving for other things you want or need?
Whether you plan to travel internationally, visit family, or staycation and play tourist in your hometown, the key is to be thoughtful about what is important to you, and to plan ahead by setting a budget and saving toward it.
Budgeting is much more effective when everyone is aligned on a collective goal. For example, I had a childhood friend whose family always put any spare change they had lying around into a big container, and they would use that money to fund their family vacation. They all chose to forgo spending pocket money on candy or other small items so they could work together toward a nice family trip.
When creating a vacation budget, you will want to break your expenses down into smaller categories like travel, accommodations, food and activities. Here are some helpful tips you can use to stretch your vacation budget a little further:
Travel
• Drive instead of fly
• Use the Google Flights grid to find the dates that are cheapest to fly
• Set a flight price alert and do research on when the flight has been the cheapest in the past
• Pack light and do laundry at your destination to reduce or avoid luggage costs
• Pack snacks and reusable water bottles to avoid buying overpriced snacks and drinks in the airport or rest stops
Accommodations
• Stay with relatives or friends
• Look into Airbnb or Vrbo, especially if you are a large group
• Do a house swap with someone who wants to vacation in your hometown
Food
• Consider eating out less and either staying somewhere with a kitchen or bringing along a Betty Crocker pizza maker or a HotLogic Warming Oven
• Grocery shopping in a new destination can be fun and is much less expensive (and much healthier) than eating out at a restaurant
• Instacart or other grocery delivery services can save time and are helpful if you don’t have a car or a store within walking distances
Activities
• Research free activities at your destination
• Sites like Groupon and LivingSocial have great deals on activities in many cities
• Booking activities in advance can save money (many websites offer coupons or discounts)
• Many venues have reduced cost or free admission days
Miscellaneous
• Use credit card points
• When possible, book on the actual vendor site (e.g. Jetblue vs. Expedia, Marriott vs. Hotels.com)—if there is a problem, you are more likely to get a resolution with a direct booking than with a third party vendor
• Use a separate high yield savings account to save for your vacation so you earn interest and reduce the temptation to dip into your savings
While creating a vacation budget, you might find that the trip you originally had in mind will cost more than you had hoped to spend. If so, you can scale down your budget by reducing the length of your stay or changing your accommodations, or you might decide to do something different altogether. Going through the budgeting exercise in advance allows you to come up with creative solutions so that you can enjoy a great vacation with your family while staying on track with your overall financial goals.
Safe travels!
Chava Cohen is a financial coach for the OU’s Living Smarter Jewish coaching program, which is dedicated to helping individuals, couples and families achieve financial freedom by providing access to educational resources and guidance.