Budget Know-How

The first rule of thumb, say travel industry insiders, is coming up with a detailed budget and sticking to it. You can even go so far as to create a vacation account (if putting money aside won't cost extra at your bank). If you have your paycheck direct-deposited, have a certain amount put into a separate account.

Another money-saving option: get a credit card that offers frequent flyer miles and use it everywhere, so you can cash in come trip-time. Or look for promotions, as Ingram did with Discover and Priceline.

Advance planning also helps, as Ilene Gordon of Potomac, Maryland, can attest. She and her family sit down and talk about where they'd like to go, then book within a reasonable time frame--a year in advance.

"Booking ahead is important to getting a fair rate," confirms Cathy Palaez of New Jersey-based Liberty Travel. "Family travel is centered around school holidays, making space at a premium. The farther out you book, the better your chances that you will get what you want. It's a question of supply and demand. When demand is high, prices are high." She suggests planning trips ten months to a year in advance, so you, "get what you want and don't feel like you have to settle for what you can get."

Gordon also involves her sons, ages 9 and ll, in their vacation discussions, including their expectations about trip expenditures. Before a trip, she and her husband give the boys a certain amount of money (or have them use their allowance) so there's a limit to souvenir spending.

Kathy McNally, Vice President for National Financial Literacy with the Silver Spring, Maryland-based National Foundation for Credit Counseling (NFCC), agrees with Gordon's tactic. The NFCC, a non-profit organization for consumer credit counseling, says involving kids in budgeting at a young age, say five and above, is a good time to teach lessons in money matters. "Children begin to understand the meaning of budgeting when they have to empty out their piggy banks or use their own money for souvenirs," McNally says.

Last, but not least: save change--it can add up. Kelly Newcomb of Summit, New Jersey, says her family keeps a gallon jug in their kitchen and periodically fills it with coins and the occasional dollar bills. When they emptied it last year, they had a whopping $5,000--enough for a trip to Grand Cayman. While your jar may not have that much, emptying it at vacation time can mean extra spending money for your kids--or you.

Please keep in mind that phone numbers, addresses, and prices are subject to change. Updated August 2005.