How to Budget for Your 2025 Dream Getaway...

Happy New Year! I’m writing this week’s newsletter from the cozy confines of an Airbnb in west Michigan. We’re in a renovated old farmhouse and the snow is softly falling while both kids nap. If there’s a more perfect setting to ring in 2025, I can’t think of it. This was one of a few “joy of missing out” trips that we planned for the year and if you don’t have one scheduled for the slow winter season yet, consider this your official reminder that you deserve a family reset!

On the topic of travel planning, I thought that January would be the right time to focus on the biggest obstacle for most of us when it comes to grand adventures—finances. Prices have only risen in the past year and putting down deposits for expensive travel can create a pit in anyone’s stomach. Creating an actionable and achievable plan is the first step to turn your dream into reality and trust me when I say there is nobody championing you along more than me. Scroll down for our tips on budgeting for your epic escape in the New Year.

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I don’t consider myself an expert on much. But I’ve always been a personal finance nerd and when my family made the decision to leave our jobs in 2023 and take a year off to travel, you can bet that I made amping up our savings my top priority.

Whether you’re planning for a big or small trip, feeling confident that your budget can accommodate it is key to a low-stress experience. As you consider your travel goals in 2025, consider the below tactics to ensure that you’re on track for your next journey and potentially get the kids involved, too.

1. Put a pin in the map, so to say

Whether you’ve got a place in mind or you sit down as a family to determine your next destination, it’s far easier (and way more fun) to save for a tangible goal. Being able to envision the sights and sounds of your getaway truly lends appeal to the typically not-so-exciting budget-planning phase of travel.

On top of that, having a firm idea of what your adventure will entail allows you to create a budget plan that’s as close to accurate as possible, rather than buying cheap airline tickets only to find out that your destination is home to a single resort with only luxury suites available to book. Once you’ve picked the place, research costs for on-ground transportation, lodging, food, and activities. (If you’re not sure where to start, we’ve found Facebook Groups to be hugely insightful and full of real-time, word-of-mouth feedback. Simply search for “Groups” on Facebook specific to your destination, resort and “family travel.”)

💡 Kid-friendly tip: We’ve had fun searching for and watching YouTube videos on family travel in the destinations we’ve planned to visit. Another option is to search for the location name on YouTube Kids and seek out cartoon-style videos on the region’s history or major attractions. Getting the kiddos excited and involved goes a long way in the anticipatory joy of travel planning.

2. Create a zero-based budget

This is the tried-and-true tactic that I’ve always relied on—a budget that allocates every dollar. I start with the total amount of money coming in each month, deduct the expenses that we know we have to prepare for (mortgage or rent, car payment or insurance, childcare, utilities, groceries, etc.) and then assign a “home” for every remaining dollar. That means some dollars are assigned to investments, cash savings or savings buckets like a travel fund. (We’ve had a great experience banking with Ally - I used to work there, as an aside! You can name your savings accounts and for years, our largest was “Year of Travel.”)

The most impactful part of this process for me has been logging into the account or setting up automatic withdrawals to move those designated dollars into their homes or buckets as soon as they’re deposited into the account. By doing so, I leave far less wiggle room to justify pointless spending (hello, Homegoods).

💡 Kid-friendly tip: If your kids don’t have a bank account or savings yet, now is a great time to introduce the concept. Allow them to pull from cash gifts or allowances to build up their own “souvenir fund” or save for a special activity on the trip.

3. Make a visual tracker (or download ours!)

Turn your savings goals into a focal point of the home that everyone can get excited about. A colorful chart or thermometer that tracks progress can make saving a family effort; we’ve created a suitcase tracker that you can color in as you go—download it for free here! Or you can use a whiteboard, poster, or even a digital app to keep everyone on the same page.

💡 Kid-Friendly tip: Visual trackers make the concept of saving real for kids. They’ll see how each contribution brings the trip closer—and it’ll make them proud to be part of the process. If you want an easy place to start, download ours! You can print it out and fill in the spaces to customize it for your own vacation.

4. Consider leveraging credit card points

If you pay off your credit cards in full each month, travel-focused cards like the Capital One Venture card or the Chase Sapphire Preferred card are great options for redeeming points toward future travel (or crediting yourself back for travel-related purchases). By using your credit cards for nearly all expenses and paying the bills off monthly, you can easily rack up points without incurring any interest-related charges—a win-win!

5. Be flexible and realistic

Life happens, and budgets need wiggle room. Build in a cushion for unexpected expenses or last-minute changes. It’s better to save a little more than scramble later.

But mostly, give yourself grace. If you’re struggling to justify the expense associated with travel, consider reading Die With Zero, a book that really helped put into words my own philosophy on spending on experiences (while I’m young and in good health, and able to fully enjoy adventuring). And don’t be turned off by the title; it’s not a greedy read, I promise!

Looking for inspiration on where to plan your next trip? The Kid-Friendly Stays travel directory is the perfect first stop in your next family vacation adventure, offering a curated collection of hotels, resorts, Airbnbs and VRBOs for your perusal.

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