Budgeting Tips for Young Travellers

In 2024, Aussies are getting super smart about saving for travel, especially with the rising cost of living. Recent research shows people are becoming more disciplined in their discretionary spending and more determined in their saving, to make sure they can still enjoy their favourite adventures. But budgeting is not just for adults. Younger family members can pitch in too and families are getting creative with earning extra money. It’s a team effort for a shared goal.

Kids and teens can learn valuable financial skills by helping track the family budget, searching for the best travel deals, and planning fun parts of the holiday. By working together, families can turn saving into a fun and educational experience, making those future travels even more rewarding.

Here are some practical tips for young explorers (and the whole family) to budget and save for your next adventure. Let’s dive right in:

Hold Family Meetings

• Discuss the trip and set a family budget including everyone’s role in saving.

• Encourage open communication and involve everyone in the planning process.

• Schedule follow up meetings to share progress as you power towards your holiday.

Decide on Your Priorities and Destination

• Are you committed to a particular destination or are you flexible with location and instead guided by budget? The answer will set the foundation for the rest of your planning.

• For example, from Australia, a trip to Europe can be pricey, while Asia-Pacific, New Zealand or domestic travel will be more affordable. This is different if you live another part of the world.

Budget Breakdown

• Identify all expected costs: passports (ensure they are up to date with 6 months validity  from your chosen travel); visas (if required); transportation; travel insurance; food and drink; tours and activities; travel gear and souvenirs.

• Also include an amount for unexpected events that may crop up, to give you peace of mind.

• Create a detailed budget spreadsheet to visualise the costs.

• You may wish to use online tools and apps to keep track of expenses and savings.

Start Saving

• Begin saving and planning well in advance to spread out expenses and avoid last-minute stress.

• Allocate an amount that as a family, you can afford to put aside regularly into a travel account. The sooner you start the better. Set up automatic bank transfers to help keep deposits consistent.

Set Saving Milestones

• Divide the total savings goal into manageable milestones.

• Regularly check your budget spreadsheet and savings account to stay on track.

• A great tip from one of our readers was to create a chart and stick it up on the wall so everyone can see how well the family budgeting is going.

• Plan mini-celebrations for each milestone achieved to keep motivation high.

Teach Financial Literacy

• This is a great opportunity to teach kids about budgeting, saving, and financial responsibility. Show them how to compare prices, find deals, and make smart financial decisions.

Research Together

• Look for free or low-cost activities at your destination.

• Find family discounts or travel deals to reduce expenses.

• Leverage reward programs and take advantage of credit card rewards and family discounts to save on flights and accommodations.

• With flights, flexibility is key. Use tools like Google Flights or Skyscanner to compare prices across different dates. Flying mid-week can often be cheaper.

• Look beyond hotels. Hostels, Airbnb, and even house-sitting can offer budget-friendly options.

• Consider applying for a credit or debit card with zero international fees eg Wires and Latitude 28. Use local ATMs for better exchange rates, and where possible avoid airport currency exchanges which typically have higher fees. 

If Looking to Save, Embrace Minimalism

• Make your own travel gear, like personalised luggage tags or travel journals.

• Pack light and avoid unnecessary purchases.

• Focus on experiences rather than souvenirs to make lasting memories.

 

Checklist for Young Explorers looking to Contribute

1. Set Your Travel Goals 🎯:

• Research your destination.
• Decide what spending money you’ll need and set a personal savings goal. E.g. money for experiences you don’t want to miss, souvenirs or trying local food. Perhaps even shouting mum or dad a gelato!
• Create a vision board or scrapbook to stay motivated.

2. Save Smartly 💰:

• Use a piggy bank or open a savings account specifically for the trip.
• Put aside a portion from your allowance each week and watch your savings grow with compound interest.

3. Get Creative with Earnings 🏡🚜:

• Offer to babysit, mow lawns, walk dogs, recycle for the neighbours at ‘Return and Earn’ to earn extra cash. 
• Sell off some pre-loved toys or handmade crafts, or organise a garage sale to boost your savings. You will be surprised at what is possible.

4. Track Your Progress 🗓️:

• Keep a journal or use a budgeting app to monitor your savings.
• Celebrate small milestones to stay encouraged and focused.

5. Show Up and Participate in Family Travel Meetings 😊💡:

• This is your chance to learn how to budget for a big goal, compare deals and see all the different factors that go into coordinating a trip such as passports, visas, transportation, lodging, food, and activities.

• Help parents research and find the best deals to stay within budget.

• If you are anything like Geo, this process will spark your imagination and soon you will be planning trips all around the world ... just like him!!

 

Budgeting for a family holiday can be a fun and educational experience for everyone involved. By working together and following these tips, it can help you save effectively and embark on your chosen journey. Happy travels, and may your family adventures be filled with joy and discovery! 🌍✨

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