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A discount rate report before the summer season, 36% of vacation planners said they would go into debt to finance their trips, whether by putting the cost on a credit card that they can't pay off immediately; using a buy now, pay later plan; borrow from friends or family; or take out a personal loan.
According to the survey, millennials were even more likely than older people to resort to debt for their summer destination.
Before you pack your bags, consider these five tips to help you avoid breaking the bank. travel budget.
It's okay if you don't see the real Mona Lisa
During a semester I spent studying abroad, other students in my journalism program in London kept talking about going to Paris and see the Mona Lisa at the Louvre Museum.
I felt I had to follow their example. What a desappointment.
Leonardo da Vinci's masterpiece is displayed behind bullet-resistant glass. Of course, it's for the protection of the painting, and I understand. However, between the window and the hordes of tourists, I was able to see Mona Lisa's smile better thanks to the postcard bought outside the museum.
I had a better experience visiting small museums in Paris.
If you don't have the money to see everything others insist on, be selective.
What made you want to visit the location?
Was it the food scene, a particular beach, a historic landmark, or a cute little jazz club?
If you're traveling to India, you might well pay for a guided tour of the Taj Mahal. Checking off a popular tourist spot might be on your bucket list.
Still, it's good if you just want to relax. You don't have to fill your vacation with sightseeing and sightseeing just because that's what the masses do.
Your trip won't be ruined by avoiding an overrated tourist trap that may not be worth your money or time.
Don't be thrifty, stupid
If there is an attraction you want to visit or an experience you want to have, don't skip it because of the cost. Instead, save money by skimping on something else that doesn't matter. (See previous tip.)
I love the water, so I'll fit a nice boat cruise or snorkeling excursion into my budget.
But I don't need to eat out a lot while on vacation. If I'm staying somewhere with a kitchen, I'll cook most of the time.
Just be careful that your frugality is not inadvertent will cost you more money or have a good time. One day my husband and I thought we'd save money on car rentals and plane tickets by taking the Auto Train to Florida. In reality, we didn't save as much as we thought, and it was a long and bumpy trip with three young children in cramped quarters. We only did it once.
Memories last a lifetime, cheesy T-shirts, not so much.
One of the most liberating things you can do financially is let go of the guilt of having to buy everyone and your mom a souvenir.
Do your family and friends need another shot glass, refrigerator magnet, or trinket to store in a drawer?
This doesn't mean that if you find something unique that your mother might cherish, you shouldn't buy it. But resist the urge to splurge on gifts for the people back home.
You're on vacation and that doesn't necessarily mean you have to shower people with gifts from your trip.
Good parenting shouldn't change on vacation
Children know that your financial defenses are down because you are more relaxed. Stay alert.
My husband and I discussed our vacation spending before we hit the road. Our children knew there were limits to their demands. Nagging didn't work at home and it won't work by the resort pool.
This can be a teaching moment on good financial management. To have fun, you don't have to please your children unnecessarily.
Even on vacation, live within your means
Get rid of that expression: “You only live once.”
It's the kind of thing you might say on vacation. But it's often a part of your brain, intoxicated by the pleasure of sunbathing on a Caribbean beach, that tries to justify its excessive spending.
You shouldn't rack up credit card debt to finance your fun. Credit card interest rates are at record highs. As of June 4, the average rate was 24.8 percent, according to LendingTree. At the same time, A a growing number of Americans are maxed outwith Generation Z in the lead, according to a report of the Federal Reserve Bank of New York.
This is why you need a budget for your trip as well as careful research to ensure you don't get stuck with stealth fees and other hidden costs.
It's okay to leave some wiggle room in your budget for an excursion or experience you might not know existed. But don't let most of your spending depend on your vacation mood.
If you can afford a vacation, I want you to have fun. But don't let your time away from home trump the financial fundamentals that serve you well during the rest of the year.
