12 Ways to Save Money for Vacation
- Vacations work best to relieve stress when they involve minimal debt.
- Saving up in advance sets the foundation for a worry-free vacation.
- Knowing how to save while you're on vacation helps you return home without new debt.
When you've been working hard, a vacation can be an oasis, a time to relax, recharge, and enjoy family or friends. It’s even better if your vacation finances can be worry-free.
With a little planning, you can have a cost-effective and guilt-free vacation—one that steers clear of the need for debt relief.
Laying the groundwork starts well before you pack your bags. Then it continues with smart choices while you're on vacation. This helps you stay free of nagging money worries while you're away, and free of too much credit card debt when you get back.
6 Ways to Save Money
A successful vacation often starts months in advance, by saving money. It may take some thought, but planning in advance can help you find better deals on travel and accommodations. Locking in better deals now could leave you with more money to spend on other things.
Saving for a vacation ahead of time can also allow you to avoid using credit cards, which often charge 20% interest or more. Why pay that money to a credit card company when you could spend it on yourself instead?
Here are six ways to save for a vacation so you can avoid debt stress.
1. Rent out a room in your home
If you have extra space in your home, you can turn that into money for your vacation. Millions of people rent out rooms via Airbnb, VRBO, and other portals. These services are designed to make it easy to list a space for rent—they can sometimes even help you find a co-host to help you prepare. Plus, meeting guests from other places may get you in the vacation mood.
2. Volunteer to work overtime
If you get paid on an hourly basis, ask your employer about opportunities to work overtime. Adding a few hours a week, especially at a higher overtime pay rate, can really be a game-changer. The extra money you bring home is over and above your usual household budget, so it can go directly to your vacation savings.
Putting in the extra hours may add to the grind, but it's easier to bear if you know it's temporary. Plus, thinking about what the overtime can buy you in terms of a debt-free vacation may make the added effort feel more rewarding.
3. Get a side job
If you're not paid hourly, or you can’t work overtime at your main job, think about getting part-time work on the side. It's the same idea as working overtime—you could generate cash to put entirely toward your vacation fund.
There are side hustles to suit all types of abilities. They range from using your car to drive for Lyft or Uber to finding a seasonal job such as working weekends at the farmer’s market.
If the cost of childcare is holding you back from getting more work, there are other options. Check out opportunities for call center and data entry work that you can do from home.
As with working overtime, a side hustle takes some extra effort. However, sometimes a little change in the work routine can be refreshing, especially when you know it's only temporary while you save money for vacation. As an added plus, those extra hours you put in reduce your opportunities to be out there spending money, so you might save even more.
4. Open a vacation account
Open a savings account that you use only for vacation funds. If possible, set up automatic deposits to put money directly in the account, so you're less tempted to spend it.
Look for an account that has no ongoing maintenance fees and has a competitive interest rate. Every little bit helps. The extra money you earn in interest could buy you a few drinks or extra desserts on your vacation!
5. Set up flight alerts
Check out online tools that can alert you to deals on airline flights. Simply enter your departure point and destination along with your planned travel dates. When an alert pops up, you might snag a bargain price. That frees up more money for other uses.
6. Use your credit card points
Don't overlook the rewards points you may have built up on your credit cards. According to the Consumer Financial Protection Bureau, Americans let $500 million a year worth of credit card rewards expire unused. Don't leave your share of that money on the table.
If you have credit card points, look for opportunities to put them towards some of your travel expenses, like hotels and airfare. Or simply apply them as statement credit, so you have a little extra spending money on your trip.
6 Ways to Save Money
Saving money in advance lays the foundation for an enjoyable vacation. You can then build on that foundation while continuing to save once your vacation starts. Here are six ways to do that.
1. Play your cards right—credit cards, that is
If you have multiple credit cards, figure out the best way to use them on your trip.
For example, you might have one card that offers generous rewards for certain types of charges, such as hotels. Make sure you use that one whenever you check in on your travels.
If you need time to pay off some of your vacation purchases, choose your lowest-interest credit card whenever possible.
If you're traveling abroad, be sure to check in advance on the foreign transaction fees your cards may charge.
2. Journey off the beaten path
Consider locales that aren't the trendiest hot-spots, but still have the beauty, weather, or attractions you're after.
Also take a different path when it comes to timing. In travel, the “shoulder season” is a period that's just a little before or after peak season, but not completely off-season. It varies from destination to destination. Consider traveling during the shoulder season instead of at the peak.
A little outside-the-box thinking on destinations and timing can allow you to save money while avoiding the biggest crowds.
3. Get a house, not a hotel room
When planning for a family, it can often be cheaper to stay at a house via Airbnb or VRBO. You won’t get daily housekeeping, but many listings offer amenities that are tough to find in most hotels. For one thing, you can get a larger group into a single unit if it has multiple rooms.
Besides offering accommodations more suited to a family's needs, this type of rental may be at a lower nightly or weekly rate. Also, instead of paying for restaurant meals plus tips, you can stock up on groceries, and prepare less-expensive meals and sandwiches to take with you as you explore.
4. Eat street food
If you eat every meal at a sit-down restaurant, your expenses can add up quickly. In many cities, food trucks are popular gourmet alternatives that feature everything from Korean tacos to New England lobster rolls. You may have to find your own seating, though some food trucks supply a small seating or standing area.
Try out some street food for a meal or two a day. You can often save a lot, while also getting to sample some of the local cuisine.
5. Make photos your souvenirs
Often people get swept up by wanting to hold onto a memory by buying souvenirs. That can be fun, but often it leaves you with a lot of overpriced junk to carry home.
Photos of you and your family in scenic locations provide a much more personalized souvenir of your journey. This avoids the cost of paying for souvenirs, and allows you to share the experience with your friends on social media.
6. Seek out free entertainment
Many cities offer free evening events, such as theater in the park or live music at the museum plaza. These places are perfect for an evening picnic that you can create from a local cheese shop or deli.
Also, cities often have free parks and scenic walkways, and some even offer free tours.
Come Home With Pleasant Memories Instead of Vacation Debt
Saving money doesn't have to be stressful. It can pay off by allowing you to afford a vacation you otherwise couldn't. If you've been struggling to get out of debt, these vacation saving techniques may allow you to take an occasional vacation while preserving all the progress you've made.
After all, vacations should relieve stress, not cause it. You'll travel more happily knowing you've prepared a vacation you can afford. Plus, not coming home to credit card bills is even better than avoiding jet lag.
A look into the world of debt relief seekers
We looked at a sample of data from Freedom Debt Relief of people seeking the best debt relief company for them during May 2025. This data highlights the wide range of individuals turning to debt relief.
Credit card balances by age group for those seeking debt relief
How do credit card balances vary across different age groups? In May 2025, people seeking debt relief showed the following trends in their open credit card tradelines and average credit card balances:
Ages 18-25: Average balance of $9,117 with a monthly payment of $274
Ages 26-35: Average balance of $12,438 with a monthly payment of $380
Ages 36-50: Average balance of $15,436 with a monthly payment of $431
Ages 51-65: Average balance of $16,159 with a monthly payment of $528
Ages 65+: Average balance of $16,546 with a monthly payment of $498
These figures show that credit card debt can affect anyone, regardless of age. Managing credit card debt can be challenging, whether you're just starting out or nearing retirement.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In May 2025, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| District of Columbia | 34 | $71,987 | $203 |
| Georgia | 29 | $59,907 | $183 |
| Mississippi | 28 | $55,347 | $145 |
| Alaska | 22 | $54,555 | $104 |
| Maryland | 31 | $54,495 | $142 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Richard Barrington
Richard Barrington has over 20 years of experience in the investment management business and has been a financial writer for 15 years. Barrington has appeared on Fox Business News and NPR, and has been quoted by the Wall Street Journal, the New York Times, USA Today, CNBC and many other publications. Prior to beginning his investment career Barrington graduated magna cum laude from St. John Fisher College with a BA in Communications in 1983. In 1991, he earned the Chartered Financial Analyst (CFA) designation from the Association of Investment Management and Research (now the "CFA Institute").
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
What's better for a vacation fund—a savings account or a CD?
In most cases, a savings account is a better choice for saving up for a vacation, because it lets you put money in bit-by-bit over time. While certificates of deposit (CDs) may offer a higher interest rate, these typically require you to put your money in all at once.
Should I take more than one credit card with me when I travel?
It depends on how many you have. It might be best to figure out which ones are best suited to your needs for this trip. You should have at least one backup with you. Also, be sure to check your balances and credit limits to make sure the cards you bring can cover your expenses while you travel.
Why should I save up for a vacation when I can put it on my credit card and pay for it later?
If you save in advance, you earn some interest on your savings to add to your vacation fund. In contrast, if you put the cost of a trip on your credit card, it costs you interest while you pay it back. That subtracts from the money you have to spend on yourself. It's always better to earn interest than to pay it!
Personal Finance
Debt Consolidation
