Families are feeling the 2025 financial pinch.
A Bankrate survey in April found that 46% of respondents plan to travel for their summer vacation this year, down from 53% last year. Why? Cost, with 65% saying they cannot afford to go anywhere because living and travel expenses are too high.
A February Harris poll found that among parents who plan to send their children to summer camp, one-fifth say they will need financial help from relatives, and 18% said that camp costs will create a financial burden. Another 11% said they will have to tap their Dependent Care Flexible Spending Account funds to cover some expenses.
Here’s how to make your summer one to remember rather than one to forget:
- Open a dedicated vacation/camp savings account. Tropical Financial Credit Union offers the Savings Club Account. Segregating the funds there makes you less likely to tap into them to pay bills. While we’re only weeks away from the start of camp in many places, the money transferred from your checking to that earmarked account will put a dent in initial expenses and help you pay off balances when summer ends.
- Sacrifice today for a better tomorrow. You’ve probably noticed how much more it costs to eat out these days, regardless of whether you’re sitting down at an upscale establishment or going through the drive-thru lane at a fast-food joint. A burger meal at the latter now costs $12 versus $7.50 in 2019, according to market-research firm Technomic. The solution: Dine in more often and set a firm limit on how many times a month the family will order pizza or other delivery meals. Put the money saved into the vacation/camp fund.
- Postpone buying things you don’t really, really need. Maybe you think it’s better to buy now before prices increase due to inflation or tariffs. Look at the problem differently: Must you have that new kitchen gadget or home décor item now? Move everything on the “I-want-it list” to the “hold list” and spend only on essentials.
- Shop around for better deals. Which camp has an early-bird signup offer? Which hotel offers a fifth night free? Put your dining-out discipline to work on the road by booking a room with a kitchen and dining in at least one meal a day.
- Clear out the garage, the attic, and the basement. Need to raise money fast? Hold a yard sale and make it a family affair by setting out clothes and toys the kids no longer want or use. Post the sale on neighborhood and classified-ad websites. Dedicate all the proceeds to the savings account.
- Put cash toward camp, rewards toward relaxation. See what you have put away in your savings and how much you have accumulated in your rewards programs. Apply them toward airline and hotel expenses and earmark the savings for camp savings. You can save twice on a car rental if you apply loyalty points and fill up at a station tied to your supermarket chain’s gas price-discount program. The less you spend, the more you can add to your savings account.
Want more tips? Visit Tropical Financial’s KOFE website. There, you’ll learn how to be a better saver, create realistic spending guidelines, cut costs, and more.