Considering a summer vacation? Don’t let costs get away from you while planning your trip. Here are some easy ways you can manage your finances and save money on your summer getaway.

MANAGING EXPENSES

It’s important to know how much your vacation will cost before you begin saving. Consider expenses such as transportation, accommodations, activities, and meals to get a clear picture of how much to budget.

One way to help achieve your expected budget is to find ways to save and earn. Opening a vacation-specific savings account has become a popular way to put aside money with several added benefits:

  • An account allows you to stash funds specifically for your travel goals. 
  • By setting up automatic deposits, you don’t have to worry about adding funds to the account.
  • Shopping for an account with a high interest rate can help you reach your goal faster. 
  • You can resume saving immediately after your trip, gearing up for your next vacation.

TAKE ADVANTAGE OF CREDIT CARDS WITH TRAVEL REWARDS

While a set-aside travel savings account will help you reach the amount you need for the vacation of your dreams, a good travel credit card will help you maximize savings, too. 

A good travel card can help you earn rewards, like multiplied airline or hotel points, on your everyday purchases, and many also offer strong fraud protection and premium travel insurance. Some also come with luxury perks–airport lounge access, free checked bags, and TSA Pre-Check or Global Entry, which provides you with an even more comfortable and cost-effective trip. 

Be sure to research which is the best option for you–many with the strongest perks have a hefty annual fee, or a high interest rate. Make sure you double-check that it is worth it for your needs, and you’ll be able to pay it off in time. As long as you’re smart with them, the benefits of these cards can often heavily subsidize your travel. 

TRAVEL INSURANCE

Speaking of travel insurance, we highly recommend it, at least for international trips. It is also incredibly helpful when you have health insurance that doesn’t cover you abroad. 

Travel insurance will cover unexpected medical emergencies, lost luggage, weather delays, and cancellations. On vacation, we often tend to overdo it, or at least eat unfamiliar foods/try unfamiliar activities. Travel insurance gives you the freedom to do so without the constant worry of unexpected medical expenses or a cancelled flight. 

We think it’s worth it for the peace of mind it grants, letting you really enjoy that vacation you’ve been dreaming of. If you can find a credit card that offers it as a free reward, great! Even if not, it’s probably worth the small percentage of the total trip cost. 

BOOKING TIMING

Another easy way to lose money is by simply booking at the wrong time. If you want to be wise with your vacation financial planning, this step is essential.

For the best prices and availability, be sure to book your domestic flights 1-3 months in advance and your international flights 3-5 months in advance. Even before this, set notifications on sites like Google Flights and Hopper to monitor price changes for your preferred dates or routes. 

Before deciding whether to bundle flights and hotels, assess your needs. If you book separately, you have a much wider selection of places to stay (which could be cheaper, especially if you use reward programs). On the other hand, bundling flights and hotels can be much cheaper than booking them separately and can often make the search more convenient.

Always be sure to purchase your airline tickets directly through airlines, though. Tickets from third-party sellers often have hidden fees and are much harder to troubleshoot if anything goes wrong. 

VACATION SECURITY MEASURES

Something you should always do is notify your bank of your travel, regardless of where you’re going. This simple step prevents them from flagging your purchases as suspicious, which could cause an inconvenience. For Riverwind customers, give us a call before you travel to avoid your account being temporarily disabled. Find your local Riverwind contact.

Stay on top of your account’s safety by turning on alerts. When enabled, you'll know immediately when something unusual happens to your account, so you can act quickly.  To activate financial alerts from the Riverwind app, locate the Alerts and Control Preference screen. From there, you can control how you’ll receive your alerts and what types of transactions to receive them for. 

Before traveling, make sure all of your bank accounts are secure. Common practices include changing your banking passwords, adding a personal phone password, and turning on two-factor authentication. These security measures make it more difficult for thieves to access your bank account. 

It’s also a good idea to pack extra funds when you travel.  Backup cards are beneficial in situations where a card has been canceled due to fraud. If you’re married, it’s possible to get two cards for the same account. It’s also beneficial to pack extra cash if you are planning to use cash. Just remember to keep the extra cash and backup cards separate from your daily spending money to avoid any mishaps.  

DEALING WITH FOREIGN TRANSACTION FEES

When you use your debit or credit card to make an international purchase, your bank may charge a foreign transaction fee of 1-3% of the purchase price. For example, you spend $200 in a foreign department store. With a 2% foreign transaction fee, you will see a $4 surcharge on your statement. This charge exists with both in-store shopping and ATM withdrawals. 

There are a few ways you can avoid or minimize these fees when traveling abroad:

  • Consider applying for a credit card with zero foreign transaction fees. 
  • Look into checking accounts or debit cards that waive foreign transaction fees. 
  • Get some cash before you leave home to minimize ATM trips.
  • Avoid transaction fees entirely by paying in cash while abroad. 

Another way to save is to be smart about exchanging currency–if you have time, you could exchange a small amount of currency before leaving home for immediate expenses, like tips or taxis from the airport. Airport kiosks are notorious for offering poor rates, and the best way to exchange money is to use a debit card at a local ATM upon arrival.

A well-thought-out financial strategy is crucial in turning your summer vacation into a reality. By managing expenses, securing your finances, and understanding foreign transaction fees, you can plan a vacation with confidence. Start planning early, and make your vacation a financial success.