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Bankrate report A survey conducted ahead of the summer vacation season found that 36% of people planning a vacation plan plan to go into debt to fund their trip, with methods of borrowing including credit card payments that cannot be paid off immediately, taking out pay later plans, borrowing from friends and family, and taking out personal loans.
Millennials were more likely to get into debt for their summer getaways than older people, according to the survey.
Before you pack your bags, consider these five tips to help you avoid exceeding your travel budget.
You don’t need to see the real Mona Lisa
During the semester I studied abroad, other students in my journalism program in London kept talking about wanting to go to Paris and see the Mona Lisa at the Louvre.
I felt I had to follow their lead. It’s a shame.
Leonardo da Vinci’s masterpiece is displayed behind bulletproof glass – to protect the painting, of course, which is understandable – but the glass and the throngs of tourists meant we got a better view of Mona Lisa’s smiling face from a postcard we bought outside the museum.
It was a better experience than visiting a small museum in Paris.
If you don’t have the money to see everything everyone else claims you should definitely see, be selective.
What was it about that place that attracted you to visit?
Is it the food scene, the special beaches, the historical landmarks or the cool little jazz clubs?
If you’re traveling to India, you might be willing to pay for a guided tour of the Taj Mahal. Visiting the popular tourist site might be on your bucket list.
But if you just want to relax, that’s okay. You don’t have to cram tours and sightseeing into your vacation just because everyone else is doing it.
Avoiding overrated tourist spots that may not be worth your money or time won’t ruin your trip.
Don’t waste a penny by sparing every penny
If there’s a tourist spot you want to visit or something you’ve always wanted to experience, don’t let the cost stop you from doing it. Instead, save money by saving on other things that aren’t as important (see previous tip).
I love the water, so I plan to build a nice boat cruise or snorkeling tour into my budget.
But there’s no need to eat out too much on your days off. If you stay at a place with a kitchen, you can cook for yourself most days.
However, frugality can be a little careless. Whether it costs money or you have a good time is up to you. My husband and I once thought we could save money on rental cars and airfare by taking the AutoTrain to Florida. It turned out we didn’t save as much as we thought and it was a long, bumpy ride with three small kids in a small space. We did it once.
Memories last a lifetime, but cheap t-shirts don’t.
One of the most financially liberating things you can do is let go of the guilt of having to buy souvenirs for everyone and your mom.
Do your family and friends need shot glasses, fridge magnets, or trinkets to stash in a drawer?
This isn’t to say that if you find something unique that you think your mom will cherish, you shouldn’t buy it, but resist the urge to spend money on gifts for those back home.
You’re on vacation, but that doesn’t mean you have to give people souvenirs from your trip.
Good parenting doesn’t end on vacation
Your kids know that your financial defenses are down because you’re relaxed.
My husband and I discussed the cost of our vacation before we left, and our kids know there are limits to what they can ask for. Nagging doesn’t work at home, and it doesn’t work poolside at a resort.
This can be a teaching opportunity about proper money management. You don’t need to unnecessarily spoil your kids in order to have fun.
Live within your means during the holidays
Stop using the expression “you only live once.”
It’s the kind of thing you might say while on vacation, but it’s often the part of your brain that’s getting drunk on enjoying the sun on a Caribbean beach and trying to justify excessive spending.
You shouldn’t accumulate credit card debt for fun. Credit card interest rates are at record highs. As of June 4, the average interest rate is 24.8 percentAt the same time, according to LendingTree, Surveys show that more and more Americans are reaching their limits, with Gen Z leading the way. report From the Federal Reserve Bank of New York.
That’s why you need to budget for your trip and also do your research carefully to avoid getting stumped by hidden fees and other hidden costs.
It’s okay to leave some wiggle room in your budget for outings and experiences you’ve never known about, but don’t let the holiday feeling dictate most of your spending.
If you can afford to take a vacation, enjoy it, but don’t let your time away from home destroy the financial foundation that will serve you well the rest of the year.