Planning for a vacation can be an exciting endeavor, but without proper financial preparation, it can quickly turn into a nightmare. Whether it's a quick getaway or the trip of a lifetime, our tips will help you enjoy your time off without the financial stress. Here's a comprehensive guide to managing your finances when planning a vacation.

Before Your Departure

Research your travel options. Compare the costs of travel on different dates and to different destinations. If your travel dates are flexible, you may be able to find substantial discounts by traveling during the off-season or to less expensive places. Additionally, consider investing in travel insurance to safeguard your finances in case of trip cancellations, delayed flights, illnesses or unexpected mishaps.

Look for deals. Hunt for special offers and packages on travel-planning platforms like AAA, Orbitz and Expedia. These can help you save money by bundling your flight and hotel. If you prefer personalized assistance, consider using a travel agent. They often have access to discounted flights and hotels, and they typically work on commission, so there's no additional fee for their services.

Create a vacation spending plan. Estimate the total costs associated with your journey, including transportation expenses (such as airfare, rental cars, gas and parking), accommodation (hotel or Airbnb, including taxes and fees), meals, sightseeing tours, activities and any souvenirs you intend to purchase. Update your spending plan during your trip to avoid getting off-track. Download our spending plan worksheet to build your plan now.

Start saving. Divide your expected travel costs by the number of months remaining until your trip. For example, if you anticipate your trip will cost $1,500 and you plan to go in six months, aim to save $250 each month leading up to your trip. Use the savings goal feature in Credit Human's digital banking app to set a savings goal and keep track of your progress.

Notify your financial institution. Let your financial institution and credit card providers know of your upcoming travel plans, specifying the location and duration of your trip. This proactive step ensures you can use your debit and credit cards without the risk of having your transactions flagged as potentially fraudulent activity.

Automate bill payments. Avoid late fees by setting up automatic payments for bills that will be due while you're away.
 

During Your Trip

Optimize food expenses. Another option for food apart from dining at expensive, tourist-marketed restaurants is to seek recommendations from locals. You can enjoy an authentic experience while managing your expenses by avoiding the up charge at tourist restaurants.

Prioritize your wants. Identify what holds the most significance for you and allocate your financial resources accordingly. Take advantage of social media platforms and local community calendars to identify low-cost activities. Depending on your destination, you may also uncover local deals and discounts on websites like Groupon.

Monitor your spending. Safeguard your finances by preserving receipts and regularly reviewing your account activity while traveling. This will help identify any discrepancies or potential fraudulent charges, allowing you to address these issues promptly instead of waiting until your return home.

As a member of Credit Human, you have a partner for every step of your financial journey. Visit Financial Health Center before your next vacation to make sure you get the most out of your finances.