I’m a personal finance expert and here’s how to save for your dream family holiday

Despite the cost of living and inflation rising, consumers are still looking to prioritise travel in 2024.
Online travel agent, loveholidays, has teamed up with personal finance expert Ashley De La Haye to provide tips on budgeting for this year's trips.
Mum of one, Sophie Hayes, a HR professional from Leeds, explains how she budgets for her summer holiday.

It's expected that 54% of families who travel are planning on taking a family holiday and with searches for ‘holiday payment plans’ up +85% and ‘low deposit holidays’ up +125% many are looking to smart budgeting to finance their much needed getaways.

Brits cherish their family holidays, its a chance to escape the hustle of everyday life and spend time enjoying your loved ones company, memories are made on the beach and kids will always remember the anticipation of the journeys there. It's no wonder that despite increased living costs, four in five Brits (81%) are making travel their non negotiable priority. To help those planning holidays abroad this year, online travel agent loveholidays has teamed up with Ashley De La Haye, personal finance writer at My Community Finance, to provide holidaymakers with useful budgeting tips.

Using flexible payment options

When it comes to saving for a holiday, after calculating the exact amount needed, it can seem a bit overwhelming, but don't worry – saving up for your trip is doable.

Planning ahead can mean cashing in on early-bird discounts, better availability, and allowing ample time to save up. Being more organised can also give you more options to spread the cost, from low deposits to monthly payment plans meaning you can book a trip in with minimal upfront costs, giving you more freedom and flexibility to pay the rest as you go. When booking direct, there isn’t always an option to utilise payment plans which is why it can be more financially viable to use an online travel agent - not to mention the peace of mind that comes with ATOL protection.

Manageable instalments offer better budget control, opening up travel experiences with minimal to no financial strain.

If you have planned ahead of time, many travel agents offer different payment plans to help spread the cost or offer low deposit rates.”

Where to save

When it comes to where to keep your savings, De La Haye suggests setting up a dedicated savings account and automating a realistic amount to transfer from your current account to your savings account every payday.

She goes on to highlight comparison websites as a great way to find the best savings account for your needs , including providers promising a good return on your money and maybe even an added perk for opening the account. “This is something I’d suggest keeping up post-holiday too, helping you save for future adventures or even life’s little hiccups.”

Budgeting for your holiday

Before travelling on any holiday, consider the price of everything from getting to the airport and back, food, drinks, and tips, to souvenirs, Wi-Fi and additional roaming data costs.

Don't forget to set some money aside for travel insurance, visas, and passport renewal fees (if applicable), as well as any equipment, luggage, toiletries or clothes you’ll need for your trip.

“It’s also important to check if you need to pay for vaccinations because they aren’t all free on the NHS and if you've got pets, kennel or cattery expenses should be factored in too - you can always ask friends or family members to pet sit for free whilst you’re away.

Finding funds where you wouldn’t expect

With budgets being stretched with increased living costs, finding the additional funds to save isn’t easy, but you may be able to find some unexpected funds to add to your holiday pot by reviewing your bills, insurance policies and subscriptions to make sure you’re getting the best deal.

Reviewing these things regularly can potentially help save hundreds of pounds that you can put towards your ‘holiday pot’ for the year.

Mum of one, Sophie, Hayes, a HR professional from Leeds saves to take her daughter away every year. Sophie states, "I aim to go away every year with my daughter, work can get busy throughout the year and weekends can sometimes get taken up with chores and general life admin, when we go away I see it as a chance to escape all those stresses and spend our time bonding, doing all the things we love. Last year I only paid a low deposit which means I can spread the cost throughout the year and don't have to splurge all at once."

“Flexible payment options have been a huge help in making this trip possible and I have some time to budget and save up for spending money once I'm there.”

Chief Marketing Officer at loveholidays, Al Murray explains:

“Flexible payment options play an important part for many when booking a holiday. They provide various ways to spread the cost, taking away the pressure of paying a big amount upfront to secure your holiday.

“While booking flights and accommodation is one thing, there are also expenses while you’re away to contend with and these can vary significantly by destination. If you’re looking to cut back on costs while you’re abroad, booking all-inclusive can help you to stay in control of your holiday spending, while visiting a lesser-known destination can also offer great value for money.”

For more information on loveholidays payment options, please visit https://www.loveholidays.com/about-us/spread-the-cost-holidays.html?usp-header-spread-the-cost