How to Save Money for a Vacation: Top 12 Tips

Even the best-laid plans for family financial planning can go out the window when you take a vacation. But that shouldn’t stop you from taking a much-needed break. Whether looking up tropical getaways or cozy cabins in the mountains, planning and saving in advance can make a difference.

We’re here to help! Here are our 12 tips on how to save money for a vacation. Let’s jump right in.

Key Takeaways

• Start saving early with a vacation jar or dedicated savings account.
• Create a budget and track expenses with apps like Mint or YNAB.
• Save money by traveling during off-peak seasons or trying a staycation.
• Use cashback apps, price alerts, and meal prepping to boost savings easily.

1. Start a Vacation Savings Jar

Having a designated vacation savings jar can be an effective way to visually track your progress. Every time you have spare change, consider dropping it in the jar. Over time, you might be surprised by how much money you have saved. You can even save money for a house using this method.

To make things more effective, you can challenge yourself by saving a fixed amount per week. Apps like Qapital or Chime’s Automatic Savings allow you to round up your purchases to the nearest dollar. They can also act as a digital version of your savings jar by letting you automatically deposit funds into a savings account.

To keep yourself motivated, place the jar somewhere visible and set a target goal, like $500. By seeing the savings grow, you’ll feel encouraged to keep adding to it. Plus, it’s a great way to get the whole family involved in saving for a vacation.

2. Set Up a Vacation Budget

Budgeting can give you a clear idea of how much you can comfortably spend and save. The first thing you should do is calculate how much money you need for:

• Travel
• Accommodation
• Food
• Leisurely activities 

Once you have the total amount, break it into weekly or monthly savings goals. You can even set up a separate vacation savings account (see tip 12) so the money you’re setting aside does not get mixed up with your regular spending.

Online budgeting tools like Mint, YNAB (You Need A Budget), or PocketGuard can help you monitor your spending, track your progress, and send you alerts if you’re veering off track. 

3. Plan Off-Peak Travel

Traveling during off-peak seasons is typically more affordable, especially when it comes to flights and accommodation. Airfare and hotel rates tend to be much cheaper when you avoid peak vacation dates. You can even get lucky to find affordable private flights.

For example, you can often save hundreds of dollars by traveling during shoulder seasons like late spring or early autumn. If you’re flexible about your travel dates, you can use Google Flights or Kayak Explore to help you compare prices.

4. Use Cash Instead of Cards

Although most of our transactions are cashless switching to cash can actually help you stick to a fixed budget. The logic is when you have a set amount of cash to spend each day, it’s easier to limit your expenses. 

It’s reported that people tend to spend less when using cash because it feels more real than swiping a card. Try using the cash envelope method, where you allocate specific amounts of cash for different aspects of your vacation, such as food, souvenirs, and activities. 

Once the cash is nearly gone, you will know it is time to stop spending.

5. Try a Camping Vacation

A camping vacation is a fantastic way to save money while enjoying the great outdoors. Campsites are often much cheaper than hotels. Many state and national parks offer affordable camping options for as little as $10 to $30 per night.

Book those campsites in advance on sites like Recreation.gov or Hipcamp. If you don’t own camping gear, consider asking friends or renting equipment from stores like REI.

6. Go on a Staycation

Staycations are becoming increasingly popular as people opt to explore local areas without the high travel costs.

By looking up things to do in your city or a nearby area, you can save a significant amount of money for your vacation. Look for:

• Local events (concerts, food festivals, etc.)
• Cultural attractions (museums, galleries, etc.)
• Hiking trails 
• Zoos and safaris 

Websites like Eventbrite and Meetup can help you find local activities and events. You’ll be amazed by how many hidden gems are under your nose.

7. Set Price Alerts for Flights

As mentioned above, flight prices can fluctuate wildly, so there are a lot of tips to save money on flights. Apps like Skyscanner, Hopper, and Google Flights allow you to track specific flights and receive notifications when prices suddenly drop.

Many airlines and travel agencies often send out email alerts for discounts or flash sales. To make sure you don’t miss these, subscribe to airline newsletters.

As a general rule of thumb, booking your flight at least six to eight weeks in advance is a method to find good deals. However, using the price alert method described above can get you even better savings.

8. Use Cashback Apps 

Cashback apps can help you save money on everyday purchases, freeing up more funds for your vacation budget. Apps like Dosh or Rakuten offer cashback deals when you shop at certain retailers or book accommodations.

You can also get cashback on flights, car rentals, and other purchases you likely often make. It may not look like much at first, but over a few months, you could be looking at a few hundred dollars you can deposit directly into your vacation fund.

9. Cut Back on Non-Essential Subscriptions 

It’s so easy to forget about recurring subscriptions to streaming services, gyms, and other websites you might’ve once used. But these hidden costs can really add up.

You could save money by cutting back on non-essential subscriptions (even if just for a few months). Let’s say you’re paying $15 each for three different streaming services. Pausing them for just six months could save you $270.

Not sure if you remember all of your subscriptions? Use services like Trim or Rocket Money to identify and cancel any subscriptions you are not using regularly. These tools will also negotiate lower rates for certain bills, putting even more money back into your pocket.

10. Meal Prep and Skip Dining Out

Dining out is often the more convenient route, but it can quickly drain your budget. By prepping meals at home and limiting the times you go out to restaurants, you can save hundreds of dollars over the course of a year.

Cooking in bulk, packing lunches for work, and freezing meals are all great ways to save time and money, and even the richest people have this frugal habit. Websites like Budget Bytes can provide you with meal-prep recipes that are tasty and cost-effective.

11. Sell Unused Items 

If you want a quick way to boost your savings for a vacation, look into selling unused items around the house. Consider going through trinkets, technology, clothing, or other appliances you have but do not use.

Decluttering not only helps you make space at home but also gives you the chance to earn extra cash. Many people can easily make $200 or more selling their things on platforms like eBay or Facebook Marketplace.

12. Open a Dedicated Vacation Savings Account 

Last but not least, you can stay focused on saving for a vacation fund by opening a separate savings account.
By keeping the money separate from your regular spending, you’re less likely to dip into it. Many online banks offer high-interest savings accounts to help your money grow while you save. 

Even small weekly transfers of $25 can add up to $1,300 by the end of the year. 

Saving for a vacation is easier than you might think. Even the smallest changes, like cooking at home or starting a vacation jar, can really make a difference. Start now and stick to your goals, even if you can’t see immediate results. Remember, every little bit adds up!