Key takeaways
- Start saving for family vacations six to nine months in advance to secure better deals and spread out the savings burden.
- Set up a dedicated high-yield savings account specifically for your vacation fund to earn more interest and track progress.
- Cut costs by choosing affordable destinations, traveling off-season, and looking for accommodations with kitchen facilities to reduce food expenses.
Family vacations can be costly, and with persistent inflation, many families are modifying their travel plans or canceling them altogether. According to Bankrate’s 2025 summer vacation survey, only 46 percent of U.S. adults are planning to travel this summer, and many of those not planning to do so cite affordability as the factor keeping them at home (65 percent). But higher prices don’t mean you have to forego a family trip.
Instead, consider taking some time to plan in advance and develop strategies to save up enough for your travel destination. This guide will help you create a vacation savings plan, find ways to cut costs and build a dedicated vacation fund.
Family vacation statistics
- Fewer than half of Americans plan to travel for summer vacation this year. Just 46% plan to travel, 38% domestically and 15% internationally with some overlap between the two.
- Cost and lack of interest cause people to forgo travel. 65% percent of non-travelers say they can’t afford to travel and 23% cite a lack of interest in traveling currently. Not being able to take time off work and travel being too much of a hassle both came in at 16 percent.
- The expense of everyday life tops the reasons people can’t afford to travel. Nearly 7 in 10 people (68%) who can’t afford to travel say everyday life is too expensive, while 64% say travel is too expensive.
Sources Bankrate’s 2025 Summer Travel Survey.
Make a vacation savings plan
To avoid overspending and ensure a memorable trip, the key is planning ahead and saving enough in advance. Here’s how to create an effective vacation savings plan:
Decide where to go on vacation
Your destination significantly impacts your total vacation cost. Rising travel costs have made some destinations less affordable, but you have options to make trips work within your budget.
Consider less touristy locations that offer similar experiences at lower costs. Look for destinations with plenty of free activities like parks, beaches, and museums. You might also explore staycation options or destinations within driving distance to save on airfare.
When choosing your vacation spot, factor in the total estimated cost including transportation, lodging, food, and activities. Also consider the distance and ease of travel, age-appropriate attractions, and availability of group discounts for families.
Need help planning your destination budget? Use Bankrate’s savings calculator to determine how much you’ll need to save monthly to reach your vacation cost goal.
Calculate expenses and budget travel
Accurate budgeting prevents overspending and ensures you save enough for your trip. Break down all potential costs to get a realistic picture of what you’ll need.
Your vacation budget should include transportation costs like flights or gas, accommodations, food expenses, activities and admission fees, plus miscellaneous costs like travel insurance and tips. Don’t forget to factor in a 10 to 15 percent buffer for unexpected expenses.
Money-saving strategies include booking accommodations with kitchens to save on dining costs, looking for package deals that combine flights and hotels, and researching group discounts for attraction admissions.
For international travel, also consider exchange rate fluctuations and foreign transaction fees. Using credit cards with no foreign transaction fees can help you save money on overseas purchases.
Start your budget process with a free travel budget template and track expenses using budgeting apps to stay organized.
Set a timeline
Your planning timeline affects both your ability to save and the deals you can secure. Earlier planning typically means better prices and more time to build your vacation fund.
For domestic travel, start planning at least three to four months ahead. This gives you enough time to research and book flights and accommodations while providing adequate time to save without straining your monthly budget. For peak season or holiday travel, consider starting six months or more in advance.
International travel requires six to nine months of advance planning. You’ll need time for passport renewals, visa applications and vaccination requirements, plus you’ll have better selection of flights and accommodations.
Example vacation savings plan
Here’s how a realistic vacation savings plan might work for a family of four planning a trip to Orlando, Florida:
Sample vacation details:
- Total estimated cost: $4,000
- Timeline: 12 months
- Monthly savings needed: $334
The savings strategy: Open a dedicated vacation savings account (the best high-yield savings accounts offer over 4 percent APY) and automate transfers of $300 monthly. Cut back on dining out and unused subscriptions to save $150 monthly and redirect those funds to the vacation account. Use cash back rewards from a rewards credit card for an additional $50 monthly, and sell unused items to generate a $400 initial deposit.
The results after 12 months: Base savings of $3,600, plus approximately $81 in interest earned, $600 in cash back rewards, and the $400 initial boost from selling items. Total saved: $4,681, which exceeds the $4,000 goal and provides a comfortable buffer for unexpected expenses.
Want to create your own plan? Use Bankrate’s savings goal calculator to determine exactly how much you need to save monthly for your dream vacation.
More tips on saving money for vacation
Paying for a vacation can be expensive, and it’s important to begin saving for it as early as possible so you can avoid holding onto debt and have a cushion of support for unexpected expenses during the trip. Saving can include setting aside money from your paycheck, holding off on purchases and adding that money to a vacation fund or working a side hustle to earn some extra cash.
Beyond your basic savings plan, these additional strategies can accelerate your progress and help you save more effectively.
Open a savings account dedicated to the vacation
A separate vacation savings account keeps your travel funds organized and motivated. This psychological separation makes it harder to spend vacation money on other things while helping you track progress toward your goal.
Having a dedicated account provides clear visibility of your vacation savings progress and prevents accidental spending of vacation funds. It also makes it easier to automate savings transfers and can earn interest on your savings while you build toward your goal.
Many banks offer high-yield savings accounts that can significantly boost your vacation fund. Current rates can earn over 4 percent APY, meaning your $3,000 vacation fund could earn an extra $120-150 over a year compared to a traditional savings account.
Ready to start earning more on your vacation savings? Compare Bankrate’s best high-yield savings accounts to find competitive rates for your vacation fund.
Cut back on costs
Reducing everyday expenses frees up money for your vacation fund. Small changes in daily spending can create significant vacation savings over several months.
Start with the biggest impact areas like meal planning and cooking at home instead of dining out. Cancel unused subscriptions and streaming services, and brew your coffee at home instead of buying expensive coffee shop drinks. Shop generic brands for groceries and try negotiating monthly bills like cable and internet.
Simple cost-cutting wins:
- Cook at home instead of ordering takeout
- Cancel unused subscriptions
- Brew coffee at home
- Shop generic brands for groceries
- Negotiate monthly bills
- Avoid unnecessary bank fees
Track your savings using a budgeting app and transfer the money you save directly to your vacation fund. This ensures the savings actually go toward your vacation rather than getting spent elsewhere.
Create extra income
If cutting expenses isn’t enough, consider ways to boost your income specifically for vacation savings.
According to Bankrate’s 2024 side hustle survey, 36 percent of Americans have a side hustle, with many using the extra income for specific goals like travel. Popular options include freelance work in your area of expertise, food delivery during peak hours or selling items you no longer need.
You can also maximize earnings through rewards credit cards that offer cash back on everyday purchases, or take advantage of bank account bonuses when opening your vacation savings account. The key is directing all extra income specifically to your vacation savings to avoid spending it elsewhere.
Track your savings goal progress
Monitoring your progress keeps you motivated and helps you adjust your strategy if needed. Use visual progress charts that show your savings growing toward your goal, or try savings apps that send progress notifications and milestone celebrations.
Schedule monthly check-ins to evaluate your progress and make adjustments if necessary. Keep your family involved to maintain motivation and accountability throughout the saving process.
If you’re falling behind your savings target, don’t get discouraged. Re-evaluate your plan and consider additional ways to save money or generate extra income. Even small adjustments can help you reach your vacation goal.
Check out Bankrate’s guide to reaching savings goals for more strategies to stay on track.
Vacation planning frequently asked questions
Next steps: Start your vacation savings plan
The most important step is simply getting started. Choose your destination and research realistic costs, then set a specific savings goal and timeline that works with your budget. Open a dedicated high-yield savings account to earn interest while you save, and automate regular transfers from your checking account.
Implement the cost-cutting strategies that work best for your family, and track your progress monthly to stay motivated. Consider additional income sources if needed, but remember that even small, consistent savings can add up to big vacation funds over time.
Read the full article here
