How to save for vacation

Whether it's time at the beach, skiing down a snowy mountain or backpacking through Europe, you’ll need to know how you're going to pay for your getaway. Whatever your dream trip looks like, tools and resources are available to help you save money for your big adventure. Find out how to save for a vacation with the six tips below.

1. Determine your dream vacation budget

The average cost of a one-week vacation in the U.S. for one person is $1,558. For a family of four, it goes up to $4,580.

Before you create a budget for your own 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?

Once you've determined your destination, come up with an accurate estimate of how much to save for vacation travel 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 customary
• Activities: show tickets, museum passes, excursions, park admission
• Souvenirs: clothing, art, local crafts and gifts

Once you add up your travel expenses, you can focus on how to save for vacation while maintaining enough money to cover your usual monthly expenses.

2. Create a vacation savings plan

Possibly the hardest part about saving for vacation is resisting the urge to spend the money sitting in your bank account. Opening a separate savings account dedicated to funding your vacation can help put you into a "savings first" mindset, and you might earn a little interest to build up your vacation funds.

To help grow your money, you can automate your savings by setting up transfers from your checking account to your savings account. And if your employer offers direct deposit, set it to deposit a small amount into your vacation savings account every paycheck to help you automatically save more.

The Citizens Savings Tracker in the Citizens mobile app can help you find more ways to save for specific savings goals.

3. Shop for travel deals

Sticking to your vacation budget can be challenging, but finding travel deals can help you save.

• Airfare: Fly during off-peak and off-season travel dates and check nearby airports for cheaper rates. Airfare costs can fluctuate daily, so research pricing for a few different days and times before booking.
• Hotels: Expand your hotel search a few miles out from your destination for low-cost options. If you're traveling with a group that's too large for one room, look for larger suites or house rentals.
• Car rentals: Consider ride-sharing or public transportation to avoid car rental charges. Car rental prices also change frequently, so book in advance to find the best price.
• Reward and loyalty programs: Check your points balance and cash in your available upgrades and rewards from loyalty or frequent flyer programs when booking flights or hotels.
• Additional discounts: Look for personalized travel deals, such as employer or military discounts. Ask about special travel pricing when booking through AAA, your credit card company or a membership retail warehouse.

4. Use travel rewards and points

You can earn rewards toward airfare, hotel rooms, car rentals and more by enrolling in loyalty programs with travel brands. With each purchase, you accrue points, miles or discounts that you can use for travel-related expenses for your next vacation. Using specific online shopping portals, usually associated with airlines or hotel chains, may also enable you to earn points or cash back.

If your credit card allows you to earn travel-related rewards, small purchases can help you accrue points if you can manage your credit card use responsibly and keep your balance low. You’ll also want to make sure annual fees and interest charges don’t outweigh the benefits.

5. Cut back on spending

Planning and saving for a vacation in advance enable you to evaluate your current spending habits and identify where you can cut back. Review your monthly expenses and look for unnecessary purchases you can live without.

For example, do you have streaming services or memberships you're not using? Can you decrease your dining out? Put whatever you normally spend on those expenses into your vacation fund. Although the amount you save may be small, it will add up over time.

6. Increase income with a side hustle

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

You can also send unexpected cash inflows, like a work bonus or tax refund, straight to your vacation savings.

Save 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

Take the stress out of saving and focus on what really matters: your next adventure. Open a Citizens savings account to help you save for your dream vacation faster.