How to save for family vacations

Family vacations can be expensive, and persistent inflation has caused many families to change their travel plans or cancel them entirely. Bankrate’s 2025 Summer Vacation Survey shows that only 46% of US adults planning a trip this summer, and many who don’t plan to do so cite affordability as a factor in their homes (65%). But higher prices don’t mean you have to abandon your family trip.

Instead, consider taking the time to plan ahead and develop strategies to save enough for your travel destination. This guide will help you find ways to create a vacation savings plan, reduce costs, and build a dedicated vacation fund.

Family Vacation Statistics

Source for Bankrate’s Summer 2025 Travel Survey.

Make a vacation savings plan

To avoid overexpenditures and ensure a memorable trip, the key is to plan ahead in advance and save enough. Here’s how to create an effective vacation savings plan:

Decide where to go on vacation

Destinations have a significant impact on total vacation costs. With rising travel costs, some destinations are no longer affordable, but there are options to make travel work on your budget.

Consider places with fewer tourists that offer a similar experience at a low cost. Find destinations with plenty of free activities, such as parks, beaches, museums and more. You can also explore stay options or destinations within driving distances to save on airfares.

When selecting a holiday spot, factorize the total estimated costs, including transportation, accommodation, food, and activities. Also consider the distance and ease of travel, age-appropriate attractions and the availability of family group discounts.

Do you need to help plan your destination budget? Use Bankrate’s savings calculator to determine if you need to save each month to meet your vacation cost goals.

Calculate costs and budget trips

Accurate budgeting prevents overexpenditures and saves you plenty of money for travel. We break down all the potential costs to get a realistic grasp of what we need.

Your vacation budget includes transportation costs such as flights and gas, accommodation, accommodation, food costs, activities, and admission fees, as well as other expenses such as travel insurance and tips. Don’t forget to consider a 10-15% buffer for unexpected costs.

Money saving strategies include booking accommodations with kitchens to save on meal costs, looking for a combined flight and hotel package deal, and researching group discounts for attraction entry.

For international travel, please also consider exchange rate fluctuations and foreign transaction fees. Using a credit card with no foreign transaction fees will save you money when purchasing overseas.

Start your budget process using the budgeting template and leave it organized using the Budget app.

Set the timeline

Planning timelines affect both your ability to save and your transactions you can protect. Previous plans usually mean better prices and more time to build a vacation fund.

Plans will begin at least three to four months ahead for domestic travel. This gives you plenty of time to research and book flights and accommodations, while providing enough time to save without straining your monthly budget. For peak season or holiday trips, consider starting at least six months in advance.

International travel requires 6-9 months of advance planning. Passport renewal, visa application and vaccination requirements require time. Plus, you can choose your flight and accommodation better.

Examples of vacation savings plans

Here’s how a realistic vacation savings plan works for four families planning a trip to Orlando, Florida:

Sample Vacation Details:

• Total Estimated Cost: $4,000
• Timeline: 12 months
• Monthly savings you need: $334

Savings Strategy: Open a dedicated vacation savings account (the best high income savings account offers APYs of 4% or more) and automates the transfer of $300 each month. To save $150 a month, cut down on eating out and unused subscriptions and redirect those funds to your vacation account. Add cashback rewards from reward credit cards for $50 a month, and sell unused items to generate an initial deposit of $400.

Results after 12 months: In addition to the basic savings of $3,600, the first boost of about $81 in interest, $600 cashback rewards and $400 on sale items. Savings: $4,681. This exceeds the $4,000 target and provides a comfortable buffer for unexpected costs.

Want to create your own plan? use Bankrate’s Savings Goal Calculator To accurately determine the amount you need to save each month for your dream vacation.

Other tips to save money for your vacation

Paying for vacations can be expensive and it’s important to start saving as soon as possible. This way you can avoid holding debts and help with unexpected expenses while traveling. Savings include throwing away money from your salary, refraining from purchasing, adding that money to your vacation fund, or doing side hustles to earn extra cash.

Beyond basic savings plans, these additional strategies will help you accelerate your progress and save more effectively.

Open a savings account exclusively for holidays

Another vacation savings account organizes travel funds and stays motivated. This psychological separation helps you track your progress towards your goals, while also making it difficult to spend your vacation money on other things.

Having a dedicated account will clearly see the progress of your vacation savings and prevent accidental spending of your vacation funds. It also makes it easier to automate savings transfers, allowing you to gain interest in savings while building towards your goals.

Many banks offer high-yield savings accounts that can significantly increase your vacation fund. Current rates can earn APYs of 4% or more. This means that a $3,000 vacation fund can add between $120 and $150 over a year compared to a traditional savings account.

Are you ready to start earning more by saving your vacation? Compare Bankrate’s best high-earning savings accounts to find competitive rates for vacation funds.

Reduce costs

Reducing your daily expenses will free up your vacation fund money. A small change in daily spending can lead to significant vacation savings over several months.

Instead of eating out, start with the biggest impact area, like planning your meals or cooking at home. Instead of canceling unused subscriptions and streaming services and buying expensive coffee shop drinks, brew coffee at home. Shop popular brands at grocery stores and negotiate monthly bills, such as cable or internet.

Simple cost savings win:

• Instead of ordering takeout, I cook at home
• Cancel unused subscriptions
• Brew coffee at home
• Shop popular grocery brands
• Negotiate monthly invoices
• Avoid unnecessary bank charges

Use the budgeting app to track your savings and transfer the money you save directly to the vacation fund. This ensures that your savings are actually heading for a holiday, rather than spending time elsewhere.

Generate extra income

If the cost of savings is not sufficient, consider ways to increase your income, especially for saving on vacation.

According to Bankrate’s 2024 Side Hustle Survey, 36% of Americans have side hustles, and many use their extra income for certain goals such as travel. Popular options include freelance work in your area of ​​expertise, food delivery during peak hours, and selling items you don’t need.

You can also maximize your revenue through a reward credit card that offers cashback on your daily purchases, or take advantage of the bank account bonus when opening a vacation savings account. The key is to direct all the extra income, especially on vacation savings, to avoid spending elsewhere.

Track your savings goal progress

Monitoring your progress will help you stay motivated and help you adjust your strategy as needed. Use a visual progress chart that shows your savings are growing towards your goals, or try the regular app that sends progress notifications and milestone celebrations.

Schedule monthly check-in to assess progress and make adjustments as needed. Engage your family and stay motivated and accountable through the savings process.

If you are behind your savings goals, don’t be discouraged. Reevaluate your plans and consider additional ways to save money or generate extra income. Even a small adjustment can help you achieve your vacation goals.

Check out our bank rate guide to see more strategies to help you reach your savings goals and stay on track.

Holiday planning is a frequently asked question

Next Step: Start your vacation savings plan

The most important step is simply to start. Choose your destination, investigate realistic costs, then set a timeline that works with your specific savings goals and budget. Open a dedicated high-yield savings account, earn interest while you’re saving, and automate regular transfers from your checking account.

Implement the best cost-saving strategies for your family and keep track of progress monthly to stay motivated. Consider additional revenue streams if necessary. However, don’t forget that even small and consistent savings can lead to large vacation funds over time.