How to Stick to a Budget on Vacation

When planning a vacation, the first step in sticking to a budget is determining how much you can afford to spend. While it’s generally recommended to allocate about 30% of your discretionary budget for vacations, the exact amount will depend on your personal finances and the type of trip you’re planning. A great way to start saving for your trip is by using an uatomated savings program like Fifth Third's Momentum^® Savings account. Setting a specific goal, such as saving for your vacation, and using Smart Savings to automatically transfer a set amount each week or month from your checking to your savings account, helps ensure you have the funds you need without added stress. By taking these steps, you can enjoy your vacation without worrying about finances.

You can ensure you stay on budget while traveling by following these tips from Fifth Third Bank:

1. Research Activities in Advance

If you know you’ll be visiting some popular attractions, go online to find discounts on tickets, package deals, or other ways to save on tourist activities. For example, in New York City, you can buy a city pass that provides reduced admission to multiple tourist destinations, such as the Empire State Building and the Museum of Natural History. Also, familiarize yourself with some of the “tourist traps” to avoid, such as overpriced restaurants and souvenir shops close to big attractions.

2. Consider Eating In

Several days of eating in restaurants can become costly. You can make your vacation dollars go further by bringing snacks, booking hotels offering complimentary breakfast, or staying in places with kitchens so you can cook. For instance, food in Hawaii is notoriously expensive. However, by booking an Airbnb and making a quick trip to the grocery store, you can save on food and put that money toward other vacation experiences.

3. Travel During the Off-Season

Visiting places during the off-season is a great way to avoid crowds and higher prices. Traveling to popular destinations during off-seasons or the adjoining periods, known as shoulder seasons, can save money on flights, lodging, and more. Resorts and hotels in ski towns, for example, often reduce their rates in the fall and spring. You can experience the resorts, do some hiking, and enjoy the small-town vibe for much less than if you visit during the height of ski season.

4. Take Public Transportation

Renting a car for a week costs an average of $700 at the cheapest rental car company, according to consumer website Nerdwallet.com. For many travelers, that’s a big chunk of their vacation budget. If you’re visiting a city with public transportation, consider taking the bus or subway instead of paying for a car (and the inevitable expensive parking). Public transportation not only costs significantly less than renting a car, but it allows you to experience a city in a different way and reduce your carbon footprint.

5. Live Like a Local

You can also stay on budget—and have more authentic experiences—by avoiding tourist areas altogether and seeking out local attractions. This might mean staying in a neighborhood instead of in the city center, seeking out lesser-known beaches or parks, or visiting favorite local food carts. You can find local blogs for inspiration or be brave and ask the locals you meet on the street for recommendations.

6. Skip the Souvenir Shopping

There’s nothing like a vacation to spur classic impulse purchases. Before your trip, think about buying one or two small things while on vacation that truly remind you of your trip and make finding those things part of the fun. In most cases, the best souvenirs of a great vacation are the memories and the photos, both of which are free.

7. Take Advantage of Travel Rewards

You can save a lot on vacation flights and lodging by leveraging travel rewards programs. If you use a credit card that provides various rewards or cash back throughout the year, you can cash in those perks for free flights or upgraded hotel rooms. Explore which programs make the most sense with your financial plan, and then put your everyday spending to work.

The Fifth Third 1.67% Cash/Back Card¹ is a great option to consider - apply online today!

8. Use Native Currency

Last but not least, using local currency while traveling abroad allows you to better manage your budget, avoid exchange rate fluctuations, and enjoy smoother transactions. Fifth Third Bank offers branches—make sure to set aside time before your trip to get the native currency you need for your adventure.

Vacations should provide you with the opportunity for rest and fun without breaking the bank. Use these tips to stay on budget while you travel, and you’ll come back refreshed and ready to plan another.