Don't Let
Vacation Spending Break the Budget
Ah, summertime vacations.
For many families, it's time for rest and adventure as Midwest vacationers
start packing their bags and their credit cards for a trip across the
country, or just up north.
But be careful. A family in
the Midwest can expect to spend right around $2,510, according to one
national consumer education group. Ka ching!
"A summer vacation can be
expensive, especially if you haven't saved for your trip," explained Jody
Anderson, program director with Lutheran Social Service's Financial
Counseling Service. "Unfortunately, there will be some who pay for their
entire trip with a credit card with no plans to pay it off at the end of
the month. That can spell disaster."
Anderson said that with 16.5
% interest on a credit card, it would take a family 18 years and 10 months
to pay for their summer vacation if the family paid only the minimum
balance. What's more, the cost on interest alone would be $3,818, which
amounts to more than the cost of the vacation itself.
What to do? Here are some
vacation spending tips from Anderson:
Set a workable budget.
Make sure you have enough cash to pay for at least most of your trip. If
you don't, save up and wait until next year.
Do your research.
There are lots of deals out there, including family packages and
early-booking discounts. Go on the Internet and plan ahead.
Bring your own. The
AAA reported in a spring survey that a family of four spends about $118 a
day on meals. Try packing picnic lunches instead of eating out and avoid
point-of-purchase expenses at tourist traps on your vacation.
Vacation close to home.
You can always steal away to a vacation spot that's nearby and save up
for a more expensive, far away vacation later on.
Lutheran Social Service
offers free budget counseling, financial education and confidential debt
management planning via in-office appointments, phone counseling or the
Internet. Lutheran Social Service is a member of the National Foundation
for Credit Counseling (NFCC).
For more information, call
the LSS Financial Counseling Service at 1-888-577-2227 or visit
www.lssmn.org/debt
