As Summer commences, so do solo and group trips as well as family vacations and baecations. However, the discussion surrounding financial etiquette when going on group trips is always constant. How much money should you spend? Should you discuss a group budget beforehand? How much money should you take with you?
The peer pressure to spend more than you have can be overwhelming when traveling, especially in group settings. In fact, according to a survey completed by National Debt Relief, spending more than you have available and going into debt can be detrimental to your mental health. Dasha Kennedy, National Debt Relief Financial Wellness Board member and financial activist at The Broke Black Girl encourages travelers to plan ahead to avoid stress around spending, friendship breakups, or peer pressure.
If traveling is an activity you enjoy participating in, it is never too early to start saving and searching for deals. Though emergencies may come up and require you to travel suddenly, in most instances, if you’re planning for a vacation, early preparation is key. Some suggest booking six months to a year in advance to spend low on flying and hotels, but before you decide on a destination, budgeting is a great way to financially prepare. Plus, it’s customizable to the individual creating it — meaning what you budget for and how much money you put aside is up to you.
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Kennedy recommends, having a clear idea of how much money you can put aside so you can splurge when it’s time. Putting small amounts of money away for monthly travel can cover things like wardrobe, tickets, lodging and excursion costs. Consider using a zero-based budgeting system when adding travel as an expense to your budget. This system accounts for every dollar of income, giving it a job. When money comes in, you can add it to the travel tab in your budget by treating travel as a monthly expense.
Though you may not travel every month, you should treat it as a bill so you can travel freely when it’s time. This can also eliminate some of the stress, shame or guilt around traveling because you won’t be spending money set aside for other bills. You can also consider becoming the friend who plans the itinerary for group travel. If you’re hoping to save money on excursions or dining, you can use travel boards to find inexpensive activities or restaurants in your destination.
You can price excursions ahead of time or even look at the menu to pre-plan what you’d like to eat. Also, consider using popular websites like YouTube or Pinterest to gather recommendations from people who have already been to your destination. Nothing is worse than spending money on an activity or restaurant that doesn’t meet your approval. Consult with other group members to see what they’d like to do. You can also ask how much they would like to spend on each activity. Consulting everyone beforehand opens the conversation and ensures everyone’s lifestyle is considered.
You still deserve some rest and relaxation if you cannot afford to travel outside your home state by plane, boat, or train. Staycations are the perfect way to explore your city without breaking the bank. Kennedy encourages us to “define what [your] own vacation looks like for you.” This could mean exploring local cities on a road trip, visiting new parks or museums, and spending quality time in a new lodging environment or at home. These vacation-like activities can still be fun and help you make healthy financial decisions.