How to save for vacation

Picture it: you are on a beach, toes in the sand and the sun glistening off the water. Or maybe you’re skiing down a snowy mountain, with your next stop being a big mug of hot chocolate in the lodge.

After months of working hard with barely a break, you really need a getaway. But reality hits and you wonder — how would I pay for that?

Whatever your dream trip looks like, tools and resources are available to help as you save for vacation.

1. Start budgeting for your dream vacation

Before you set a budget for a trip, you'll need a clear idea of where you want to go. Do you want to sightsee through Europe, take a road trip across the country, hike through national parks or just relax on a beach in the Caribbean?

The average cost of a one week vacation in the U.S. for one person is $1,991¹. For a family of four, it goes up to $3,609. Rather than scraping the funds together for your trip, planning ahead can ease the stress of paying for a vacation.

When building a budget, it's important to come up with an accurate estimate of how much to save for vacation costs. Here are some expenses to consider:

• Travel (airfare, resort fees, rental car, transportation and fuel)
• Lodging (hotel rooms, house rental or timeshare)
• Food (groceries and meals out, including tips, if they are customary at your destination)
• Activities (tickets for shows or events, museum passes, cruise excursions and admission to national parks)
• Souvenirs

Once you add up your travel expenses (with some extra padding, just in case), you can focus on how to save for vacation while still maintaining enough money in your bank account to cover your usual monthly expenses.

2. Create a dedicated vacation savings account

Possibly the hardest part about saving for vacation? Resisting the urge to spend the money just sitting in your bank account.

Opening a separate checking or vacation account can put you into a "savings first" mindset. As a bonus, you might earn interest to build up your vacation funds. You can also maximize the benefits of online banking tools, such as mobile check deposit² in your mobile app³, to send money directly to your vacation savings account before you're tempted to spend it.

Once you've put together an estimated cost of your trip and designated an account for it, the next step is to set a vacation savings goal. This is where Citizens Savings Tracker®⁴ can help. A tool built right into the mobile app making it easy to visualize your goals, automate transfers and monitor your progress – whether you’re saving a little each week or rounding up daily purchases. It’s a simple way to stay consistent and motivated as your vacation fund grows.

Before you know it, you’ll have funded your goal just by saving bit by bit.

3. Shop for travel deals like a pro

Sticking to your vacation budget can be challenging, but there are ways to find deals on travel. If you're a member of any loyalty or frequent flyer programs, check your points balance and cash in your available upgrades or rewards when booking flights or hotels. Also, watch out for flash sales. Tracking price movements and being prepared to dip into your vacation savings when you receive a low price alert can knock a significant amount of money off the cost of your trip.

Airfare

The cost of airfare sometimes moves up and down daily, so it pays to research pricing across a few different days and times before you book. If the price of airfare drops after you've purchased tickets, you may still be able to take advantage of lower fares by calling the airline and asking if they can refund the difference.

The timing of your airfare purchase may also help you get the best prices. Booking in advance can sometimes mean cheaper airfare. For additional savings on a tighter budget, consider flying at off-peak times, such as early morning flights. Check all nearby airports for flights and remain flexible with your dates of departure. Midweek flights may be cheaper than weekend trips when traveling to vacation destinations.

Hotels

Many hotels require you to join their loyalty programs to secure the best rates and receive upgrades. If you're a frequent traveler — or would like to travel more in the future — try to stick with one brand to build up your rewards balance.

If you're traveling with a group that's too large to squeeze into one room, look for larger suites or compare hotel prices to house rentals. If you get one with a kitchenette, it can also help you save on meals.

One more consideration is that it may be convenient to stay in the center of the action when touring a large city or attraction, but you may want to expand your search a few miles or more out as these will usually cost a bit less. If it's your first time visiting an area, ask friends, family, a travel expert or your social media network to recommend safe, budget-friendly accommodations close to your travel destination.

Car rentals

Depending on where you're going and your planned length of stay, using ride-shares or public transportation may save you money over renting a car. Like plane tickets, car rental prices change frequently based on availability, so booking in advance can help you find the best price.

Additional discounts

Look for personalized travel discounts available to you, such as employer or military discounts. Also ask about special travel pricing when booking through AAA, your credit card company or a membership retail warehouse. Another way to save on your next vacation is to consider traveling in the off-season or shoulder season, so keep that in mind when choosing your travel dates.

4. Find one area where you can reroute money to your trip

When your vacation is planned well in advance, it can be easier to review your spending habits to determine where you could cut back to save for your trip. Could you one of your streaming services or a membership? Even saving restaurant or take-out meals for a special treat on the weekend instead of multiple times a week can save substantial money over time. Just remember to put whatever you normally spend on those discretionary expenses into your vacation fund right away.

With Citizens Savings Tracker®⁴, you can set your savings goals and see how even small changes add up over time – giving you a clear picture of your progress and helping you stay on track.

Unexpected cash inflows, like a work bonus or tax refund, can also be kept out your normal budget and sent to straight to your vacation savings.

5. Start a side hustle

If you're saving every month and still coming up short, you can fill the gap with a side gig or part-time job. Place whatever extra money you earn directly into your vacation savings. Do you have the skills to freelance or help others with something like website construction, tutoring or bookkeeping? If you're an animal lover, would you consider dog walking or pet-sitting?

Bonus: Saving while you're on vacation

When you're having the time of your life at your destination of choice, saving money may be the last thought on your mind. But you don't want to return from vacation and feel like you're suddenly behind financially. Stay mindful of your budget while traveling and consider these additional tips to help you spend smart:

• Buy weekly public transportation passes if you feel comfortable and safe navigating your way around the cities you visit.
• Travel light to save your back and your luggage fees.
• Look for free attractions such as museums or public parks.
• Buy travel insurance in case something unexpected happens and you have to miss your trip.
• Look for package deals that include a combined discount on airfare, hotels and car rentals.
• Stay in hotels that offer free breakfast so you have one meal you don't have to pay for.
• Consider visiting lesser-known places that aren't famous tourist destinations for a more low-key (and possibly less expensive) experience.
• Ask the hotel concierge for recommendations of things to do within your budget.

Get ready to relax

You work hard all year; don't forget to take a break. Vacation time offers you the chance to unplug, recharge and relax. If money is tight, you have plenty of ways to plan ahead for a future trip and maximize your budget by taking advantage of available discounts and low-cost pricing.

Set a vacation goal with a budgeting app like Citizens Savings Tracker®⁴ and automate your savings by diverting money from your primary checking or savings account. It’s a smart way to take the stress out of saving and focus on what really matters: your next adventure.