Looking for some creative ways to save money so you can take a family trip this year? These are some smart strategies you need to know about.
With all the expenses that come with having a little one, it feels like you have no extra money for a trip. As a toddler mama that loves to travel, but also needs to eat and pay the electric bill, I am giving you some creative ways to save money that I use to put money aside for vacation.
You are going to learn effective money-saving strategies including ways your employer can help you save and how you can save while your toddler is in daycare.
After learning about all of these creative ways to save money, you will see your travel fund start to grow.
This post is all about creative ways to save money so you can plan a family trip and make lasting memories.
Creative Ways to Save Money for a Family Vacation
1. Take advantage of pre-tax accounts through your employer
If you have a toddler, then you probably have daycare and medical bills for them. Since you have these expenses, you might as well save on taxes while paying for them, and less money going towards taxes means more money for vacation!
Many employers offer health savings accounts, healthcare flexible spending accounts, and dependent care flexible spending accounts. You can put pre-tax dollars into these accounts to use for eligible healthcare or dependent care expenses. And putting money into these accounts will reduce your taxable income. Win-win!
You can check with your employer to see if they offer these accounts, if you are eligible, and when you can enroll. You also want to ensure you understand any rules for these accounts, such as deadlines to incur or submit claims.
2. Look into your daycare vacation policy
If we give our daycare two weeks advance notice that our son will be out for a week, they do not charge us for that week. This is huge! We can put the money we would have spent on daycare for the week toward our vacation instead.
We even take this a step further and try to keep our son home for a few weeks during the year to save money. My husband and I will take different days off one week so our son can stay home. Or we have family help out too by watching him for a few days.
A lot of daycares charge you even if your child is out for a week. If you are looking into daycares and you want to travel, then make sure you ask about their vacation policy. Some daycares might not give you unlimited weeks, but they might at least let you take two weeks of vacation without charging you for the weeks.
3. Saving hack for anyone paid bi-weekly
If your employer pays you bi-weekly, then you get 26 paychecks each year. This means most months you get two paychecks, but in two months of the year, you get three paychecks.
When making your budget, plan on receiving 24 paychecks for the year – two paychecks every month. Those extra two paychecks each year can go right into savings for vacation.
If you can’t save the full amount of these two paychecks, then set a goal to at least put some of the money into savings.
4. Pay in cash
Paying in cash can make you think twice before purchasing something, and therefore help you save.
It’s probably not feasible, or at least not convenient, to pay for everything with cash. However, if paying in person, then pay in cash.
For example, your weekly (or maybe daily?) Target run. If you are anything like me, then when you go to Target you probably get sucked into buying more than what’s on your list. But if you take just enough cash to pay for what’s on your list, you are less likely to spend money on any extras.
Paying in cash can also be a great way to teach your child about money management. If they want a different snack, then explain you can only afford one and have them choose which snack to get.
You might also start to realize just how much you are spending and be able to cut some expenses. Then the extra money can go into your vacation savings!
5. Rewards, rewards, rewards
If you have a credit card, ensure you are getting rewards and take advantage of the rewards you earn.
Toddlers are expensive! All of their gear, food, daycare, and medical bills add up. You can benefit from these purchases by using your rewards credit card to pay for them. Then, you can build up your rewards to use for a family trip.
If you have a flexible spending account or health savings account for daycare or healthcare expenses, you can use your rewards credit card to make the purchase and then reimburse yourself from these accounts so you get the best of both worlds.
There are so many reward credit cards out there so do your research. You want to make sure you are getting the most rewards based on your spending habits.
6. Set up direct deposit for vacation savings
You can open a bank account just for your vacation savings. Then set up direct deposit with your employer so a set amount goes into the account from each paycheck.
This way you won’t have to set aside money from each paycheck for vacation and you can avoid the temptation of using the money for something else.
Even if you can’t save a lot, just setting it up to have a little come out of each paycheck will help with saving for your next family trip.
7. Downsize to one car
There are usually two cars in households where both parents work. Nowadays, so many people have moved to remote work, or at least a hybrid work arrangement, and don’t commute to an office as often.
If your work arrangement has changed, or you have the flexibility to change where or when you work, then reevaluate your need for two cars.
If you can downsize to one car, you can save on car insurance and routine maintenance. Not to mention the money you will get for selling your car. You can add this money to your family trip savings fund!
8. Review subscriptions and memberships
You might be surprised by how much you are spending on subscriptions and memberships. Whether it’s subscriptions to streaming services, meal delivery, or store memberships, there are subscriptions for just about everything.
Review your subscriptions and how often you use them. Do you really need multiple streaming services for your little ones or can they just watch shows on one?
You can also look for alternatives. Instead of paying for a gym membership, you could start to exercise at home.
Although subscriptions might seem cheap when paying monthly, they can get expensive over time, especially if you have a lot. So look to cut some and put the money towards vacation instead!
9. Reduce your debt or other payments
If you pay something off or no longer have the expense, you can put the money you would spend each month into your vacation savings.
One way to do this is by paying off a car loan. If you no longer have a monthly car payment, you can put the money you spend each month into savings.
Another opportunity is your daycare expense. Once daycare is in your rearview mirror, you can put the money you spent each month on daycare towards your next family trip.
If there is anything you can pay off, and not replace with a new expense, then you can put the money you were spending for the expense each month into savings instead.
