How I Create a Travel Budget (For Family Trips Too!)
I love to travel, but let’s be real—traveling can get expensive fast if you’re not careful. Over the years, I’ve learned that creating a travel budget is the key to enjoying a trip without coming home to an empty bank account or a huge credit card bill. Whether I’m planning a weekend getaway or a longer adventure, I always take the time to figure out my budget ahead of time so I can make the most of my trip without stressing about money.
If you’re wondering how to create a travel budget that works, don’t worry—I’ve got you covered. I’m going to walk you through the simple steps I use to plan out my travel spending, so you can enjoy your next vacation without any financial surprises.
Step 1: Figure Out How Much You Can Spend
The first thing I do is figure out how much I’m willing (and able) to spend on the trip. I look at how much I have saved up, how much I can save before the trip, and whether I have any extra money coming in (like a bonus or side income).
Once I know my total available budget, I can start breaking it down into different categories like transportation, accommodation, food, and activities. This helps me avoid overspending during the trip because I know exactly how much I can afford in each area.
Step 2: Research the Destination
Before I finalize my budget, I spend some time researching my destination to get a feel for how much things cost there. This is super important because it helps me avoid surprises, and the cost of living can vary a lot depending on the location.
I look into:
- Accommodation prices (hotels, rentals, hostels)
- Flight and transportation costs
- Food prices (restaurants, street food, or groceries)
- Activities and entertainment (tours, excursions, attractions)
Websites like Nomadlist is great for checking the average cost of things in a specific destination. This research helps me set realistic expectations for the trip and plan my budget accordingly.
Step 3: Break Down Your Expenses
Once I’ve done my research, I break my budget down into categories. Here’s how I usually divide it:
1. Transportation
This includes flights, local transportation (like buses, trains, or rideshares), and any other travel costs. I use comparison sites like Kayak, Google Flights or Skyscanner to find the best deals on flights. Don’t forget to include extras like baggage fees or gas if you’re renting a car.
2. Accommodation
I decide where we’ll stay and for how long. Sometimes we splurge on a nice hotel, especially if it’s a shorter trip, but we also save money by staying in vacation rentals or budget-friendly hotel. It really depends on the destination and whether we’re traveling with just the kids or with extended family.
3. Food and Drink
Food is one of the easiest places to overspend, so I make sure to budget for this carefully. I don’t usually cook, even when I’m not on vacation, but if there’s a kitchen available, making a meal or two can definitely help you save some money. Otherwise, I like to balance things out with a mix of fancy restaurants, local street food, and grab-and-go options. This way, we still enjoy some great meals without blowing the food budget.
4. Activities and Entertainment
I always try to plan ahead by researching activities and entertainment. One of my favorite budget-friendly options is free walking tours. They’re a fantastic way to get to know the local area, and the guides (often called "local gurus") offer great recommendations for things to do, see, and eat. Plus, you get the chance to learn about the culture and history of the place without spending much—just a tip for the guide at the end.
In addition to walking tours, I also look for other free or low-cost activities, like hiking, visiting local markets, or exploring parks. For paid attractions (like museums or tours), I always try to budget for them in advance so I know what to expect.
5. Miscellaneous Expenses
This is where I add a buffer for unexpected costs, like souvenirs, travel insurance, tips, or anything else that pops up during the trip. Having some extra money in the budget gives me peace of mind.
Step 4: Track Your Spending (Family-Specific Tips)
When we’re on the trip, I always track our spending to make sure we’re staying within the budget. Here's how I do it, depending on who I’m traveling with:
For Immediate Family (Husband and Child)
I use a simple Excel budget tracker to keep track of our expenses. I have different columns for transportation, accommodation, food, and activities, so it’s easy to see where our money is going. I update it daily, and this helps me stick to our budget while still enjoying the trip.
For Extended Family Trips (Mom, Uncles, Aunts, Cousins)
When we travel with extended family, things can get a little more complicated with shared expenses. To keep everything fair, we use Splitwise, an app that helps track shared costs like meals, transportation, and group activities. Everyone enters what they paid for, and the app splits the expenses evenly. At the end of the trip, Splitwise shows who owes who, making it easy for everyone to settle up without any awkward conversations.
Using these tools keeps our trips organized and stress-free. Plus, it prevents anyone from feeling like they’re paying too much or too little.
Step 5: Be Flexible
Even with the best planning, things don’t always go as expected. Sometimes transportation costs more than I anticipated, or we find an activity that’s too cool to pass up, even though it wasn’t in the original budget. That’s okay!
If I overspend in one area, I try to cut back in another. For example, if we decide to splurge on a fancy dinner, I’ll balance it out by eating cheaper meals the next day. Flexibility is key to sticking to the overall budget while still enjoying the trip.
Step 6: Save for the Trip
Once I have a clear idea of how much the trip will cost, I start saving. I set a savings goal and break it down into monthly or weekly amounts. For example, if the trip will cost $2,000 and I have 10 months to save, I aim to set aside $200 a month.
To make saving easier, I set up automatic transfers to a separate savings account dedicated to travel. This way, I’m consistently saving for the trip without having to think about it.
Step 7: Enjoy the Trip Without Worrying About Money
The whole reason for creating a budget is so I can enjoy the trip without constantly worrying about how much everything costs. By planning ahead and tracking my expenses, I can relax and have fun, knowing that we’re staying within our financial limits.
Plus, having a budget means I can prioritize what matters most to us on the trip. If we really want to splurge on a special experience, I can adjust the budget in other areas to make it happen without feeling guilty or stressed about the money.
Final Thoughts: Why You Should Create a Travel Budget
Creating a travel budget doesn’t take much time, but it makes a huge difference in how enjoyable the trip is. Having a clear plan for your spending helps you make the most of your time and money, so you can focus on making memories instead of worrying about finances.
Whether I’m traveling with my husband and child or with my extended family, having a budget keeps everything organized and stress-free. So, if you’re planning a trip—whether it’s a solo adventure or a big family vacation—take a little time to create a budget. Trust me, it’ll make your trip so much more enjoyable.
Happy travels!