How to Save Money for Summer Vacations in 2023

February 21, 2023
Yahne Jackson
PFCU Financial Educator
Philadelphia Federal Credit Union
[email protected]

Save Money on Summer Vacation Planning: 6 Tips to Start Saving & Planning Today!  

Even though we’re in the midst of the drab and dreary winter, it’s never too early to start dreaming of summer fun. In fact, vacation planning during the winter months actually has many numerous benefits.

To start planning your summer vacation, follow these tips to save you money on your upcoming trip.

Figure Out Your Destination

The first order of business for any vacation is figuring out where you are going. You can visit many places on a limited budget. Although they might not be the most popular destinations, you’d be surprised by the list of the cheapest places to travel. U.S News and World Report outlines a unique and diverse list of affordable vacation options that all have something different to offer, including the Grand Canyon, Bar Harbor, Maine, and Colorado Springs.

Budget Well Ahead of Time

Once you’ve decided where you’re going, start getting your budget in order. Explore different housing options in the area, such as hotels and Airbnbs, as well as flights and entertainment options to get a sense of how much things will cost. Make sure to factor in other expenses, such as food, as well. Once you have a number, divide that number by how many paychecks you’ll receive until the trip. That will give you the amount of money you should be setting aside each payday until your vacation to ensure you won’t be in over your head when it comes time to pay the bill. The further ahead you plan things out, the less you’ll have to worry about setting aside each time. You can help save toward this goal by cutting out frivolous expenses in the lead up.

Sign Up for Price Alerts

Another perk of starting the planning process early is you have time to track the best price. To assist with this, sign up for price alerts so you are notified when the price of what you are looking for dips. With Google, Kayak, and Expedia, you can fill out when and where you are planning on going and your price range. The sites will then send you notifications when flights and hotels for your desired trip reach your price range.

Be Flexible (with Flights)

To maximize your financial savings, being flexible with your time is one of the most important factors. This is especially true if you are flying somewhere. By flying on a less busy travel day such as a Tuesday, Wednesday or Saturday, you can save anywhere from 10% to 40% per ticket. Also, while nonstop flights are certainly the most convenient, they are also much more expensive. Choosing a flight with a layover can save you $100 to $200 per ticket. There are also savings to be had flying by exploring prices at different airports. Compare flights to your destination at a number of airports within driving distance and gauge whether the price difference warrants a drive to an airport a little further away from home.

Take Advantage of Credit Cards

Make sure you are taking advantage of credit card rewards. There are a number of credit cards out there that offer points toward flights, hotel rooms, restaurants and more that can help take a chunk out of your next trip’s expenses. While there are many great travel cards out there, here are a few good options:

  • Capital One Venture Card: The Venture Card offers unlimited 2 miles per dollar on every purchase, along with unlimited 5 miles per dollar on hotel and rental cars booked through Capital One Travel. You can also earn 75,000 bonus miles by spending $4,000 on purchases within the first 3 months of opening the account. The annual fee for the card is $95.
  • Chase Sapphire Preferred Card: The Sapphire Preferred Card allows you to earn up to $50 in statement credits each account anniversary for hotel stays purchased through Chase Ultimate Rewards, 5x total points on travel purchased through Chase Ultimate Rewards, 2x points on other travel purchases, 3x points on dining including takeout and delivery, 3x points on groceries, 3x points on streaming services, and 1 point per dollar on all other purchases. You can also earn 60,000 bonus points by spending $4,000 on purchases in the first 3 months from the account opening, that equates to $750 toward travel when redeemed through Chase Ultimate Rewards. The annual fee is $95.
  • American Express Gold Card: With the Gold Card you can earn 4x points at restaurants, 4x points on groceries, 3x points on flights, and 1x points on all other purchases. With this card you also receive a $120 dining credit, giving you $10 each month to use at select restaurants and food delivery apps. If you spend $4,000 on purchases in your first 6 months with the card, you’ll receive 75,000 in membership rewards points. The annual fee for the card is $250.

With most cards offering major bonuses for reaching a spending threshold in your first few months, getting a card right before you book a trip would make sense. The points earned through receiving the bonus would help pay for your next trip.

Also, as with any tip involving credit card rewards, always remember to only spend what you have. If you aren’t paying your bills on time and in full every month, the credit card debt will offset any potential perks.

Learn From the Locals

Many vacation destinations are filled with restaurants, bars, shops, and entertainment options that are ‘tourist traps.’ These places are often very overpriced and aimed specifically to attract travelers. To avoid being price gouged while vacationing, learn from the locals. You can do this ahead of time by scouring options on review sites such as Yelp to get an idea of which places to look for and which to avoid. Once there, the easiest thing to do is just talk to the locals to find the best spots. From your Uber driver to hotel employees, there is no better way to find the best places to go while on vacation than by asking the people that know that place the best.

It’s never too early to start planning your dream vacation. By following these tips, you can save some money and reduce some stress so you can spend more time enjoying yourself.