A lot goes into planning and managing summer vacation costs. By setting a realistic budget, using savings strategies, and selecting cost-effective travel options, it’s possible to reduce financial stress and enjoy a memorable trip.
Read on to learn how to save for a vacation, stick to a budget, and use tools to split and pay back shared costs among friends and family.
Whether it's a road trip with family, camping with friends, a beach getaway, or exploring an international destination, it’s important to understand the various costs associated with a summer vacation. Common costs include transportation, accommodations, food, activities, and other miscellaneous items.
Looking for ways to save? Consider these savings strategies:
One way to set a summer vacation budget is to first assess how much discretionary money is available.
For example, if someone manages their overall budget using the popular 50/30/20 rule where 50% of income goes to essential expenses, 30% goes to discretionary spending, and 20% is saved, then that 30% can be put toward vacation costs.
Next, it’s helpful to think about how to manage the different types of expenses that’ll come up during the trip. These typically include:
Using travel rewards to help with summer vacation costs can significantly reduce the overall cost of a trip.
There are several types of rewards associated with credit cards, loyalty programs, and digital wallets that allow travelers to earn points or cash back rewards on travel-related expenses.
For example, travel points on credit cards are rewards earned for eligible purchases. When enough points are accumulated by the cardholder, they can redeem them for things such as flights, accommodation, or sometimes even upgrades.
Another way to earn rewards is via cash back apps that offer earning potential for spending with certain travel-related companies or airlines. For example, PayPal users can get access to travel-related deals and offers in the Travel category in the PayPal app. It’s also possible to earn cash back on travel essentials by savings deals in the app and redeeming them at checkout.2
The way points and cash back are earned and redeemed will vary depending on the program.
This time, it’s the destination and the journey that count. Choosing where to go can have a significant impact on the cost of a summer vacation. Regional price differences for accommodations, activities, and dining can play a role in helping travelers choose their destination if seeking out a low-cost trip.
For example, a trip to Southeast Asia could be more cost effective than a European vacation due to lower local prices. Additionally, traveling during shoulder seasons can result in substantial savings on flights and accommodations.
Flexibility is the name of the game here. Be open to off-peak travel dates and cheaper destinations. This will go a long way to stretching the vacation budget further.
Here are some practical tips to save money on daily travel expenses:
Using secure peer-to-peer (P2P) payment methods can simplify the process of splitting costs, making it easy to send and receive payments between friends and family.
Here are some common examples of shared vacation costs:
The process of splitting costs usually involves selecting the person to send or receive the payment, entering the amount, and confirming the transaction. Different platforms may have varying steps, but the overall process is typically quick, easy, and safe.
Some P2P services offer features like buyer protection, which can help give travelers peace of mind when paying for things while traveling.
For example, PayPal Purchase Protection3 protects eligible purchases when money is sent using Goods & Services. This means travelers can pay merchants selling things like artisan market wares or local activities with confidence, knowing the payment is secure.
Need to send money to local friends and family while traveling? PayPal has this covered, too. It’s possible to send money to people in 110+ countries and in local currency so they don’t have to wait.
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