I’m a Financial Expert: How Much the Middle Class Should Spend on Summer Vacation in 2024
Ahh, summer! With its warm beaches, sunny days and endless relaxation, it’s a lovely break in the middle of the year. And since summer vacation is almost here, many are scrambling to figure out what they’re going to do — and how they’re going to pay for it. With rising inflation affecting every aspect of travel, it’s more difficult than ever to know where to go and where to get the money to fund the trip.
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That’s why GOBankingrates spoke to financial experts to help you figure out exactly how much to spend on your summer vacation in 2024.
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It Depends on Your Budget and Priorities
As always, it comes down to looking at what you have and what you want.
Aaron Cirksena, founder and CEO at MDRN Capital, said, “It really depends on income and priorities. Many people follow the 50/30/20 rule — 50% of their money for needs, 30% for wants and 20% for savings — so going off of that, I would suggest no more than 20% of their budget.”
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Consider Your Vacation Style and Savings Timeline
The Shakespearean saying is true: Know thyself — and thy vacation style.
Connor Carnduff, CFP, advised, “First, define what you want your vacation to be. Are you looking at a luxurious getaway or a budget-friendly trip? Do you value the length of the trip, the quality or the destination? Once you have a clear picture of your vacation plans, you want to create a detailed budget estimating the costs associated with each aspect of the trip.”
He added, “Now based on your vacation budget and financials, establish a realistic savings target and timeline to reach your goal before summer arrives. Divide the total cost of your vacation by the number of months or weeks remaining until your departure date to determine how much you need to save each month or week.”
Money-Saving Vacation Tips
Of course, when you’re planning, it’s important to look for deals.
Cirksena shared some money-saving tips: “Don’t stay in the big tourist hotels or go to tourist restaurants. Look for out of the way motels, campgrounds or rental properties, and limit eating out to once a day while on vacation. Food will rack up the expenses quickly. If you cut back on eating out, you can save a lot.”
He also recommended “traveling to places that are in their off season, as prices will be less than their peak seasons.”
Build Vacation Savings Into Your Plan
Summer vacation planning can — and should! — start way before the actual vacation.
Julie Beckham, Rockland Trust‘s AVP/financial education development and strategy officer, said, “Factor the vacation you want to take into your spending plan and work out how much you need to set aside to make that trip a reality. Just like anything, starting early and saving consistently can really pay off. It feels a lot better to save for a year to go away than to go away and spend the next year paying for that vacation.”
Look for Cost-Saving Opportunities
Beckham shared that it’s smart to look for other places you can cut back on to help fund your trip.
“The first step is understanding how much money you have coming in and looking at how you spend that money today,” she said. “You might find places to trim back spending. Are there subscriptions that you don’t use that can put some flexibility back into your budget? Will you be using that gym membership this summer? Are there ways to cut back on food costs by cooking at home as you near your vacation date?”
The Value of a Vacation on a Budget
As always, the most important thing is to have fun — while living within your means. A vacation should never send you into debt.
Beckham shared, “Everyone deserves time for rest and relaxation, and treating yourself is important to overall happiness and well-being! If things are tight, don’t dismiss the ‘staycation.’ Many of us live in areas of the country where you can drive just a little bit and see so much. And if you have little ones, they really just want to spend time with you!”
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This article originally appeared on GOBankingRates.com: I’m a Financial Expert: How Much the Middle Class Should Spend on Summer Vacation in 2024