Smart banking tips for your next getaway
When everyone seems to be talking about their travel plans—if they haven’t jetted out already—it’s time to decide what your vacation will look like this year. Before you hit the road with the kids or set sail to your dream destination, here are a few things to keep in mind.
Paying for your vacation
Whether your plans include backpacking, a luxury cruise, or something in between, they’re going to cost something. So, what’s the best way to pay?
- Save up the entire amount in advance. That doesn’t mean walking around with a cash-stuffed wallet. It means having enough money in your account to cover everything and taking some cash with you. When you run out of cash, you can pay with your debit card or withdraw more from an ATM. (We’ll get to ATMs later.) If your trip is a few months away, you can build up your savings in a regular savings account, earn more with a high-yield savings account, or open a CD to lock in a great rate. Your kids can put money aside for souvenirs with kid-friendly savings. You can also round your debit card purchases up to the next dollar and save the difference, so every time you shop, you’re adding to your trip fund.
- Pay with plastic. If you’re a fan of earning points or getting cash back, be extra careful. Please, please, please do not put everything on a credit card without a plan to pay it off right away. It’s easy to find yourself in a credit hole and incredibly tough to dig yourself out. Your money should go toward vacation fun, not boring credit card interest.