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How saving for a vacation can be a valuable budgeting lesson for your kiddos

When it comes to creating your budget for the year, a vacation allowance is not typically considered an important expense. But maybe it should be, especially if you have little ones in your household. Planning and saving for a vacation is a great way not only to create life-long memories but also give your children the tools to learn how to create a budget and instill saving at a young age.

Where do you start?

The most important lesson you can teach your children is conceptualizing money and to living within their means. Give your kids a budget and some geographical restraints and then let them brainstorm ideas about where they would like to relax on their next vacation. This initial step is important because it gets your children excited about the upcoming getaway and increases the likelihood of them wanting to be involved in all steps of the process.

Figuring out the logistics

Who says kids can’t also be part of planning the logistics? When you choose a location, have your little ones pick two or three activities they would like to do while there. Have them research how much tickets cost and determine what’s the best way to get there. By setting a limit on how much each excursion or meal can cost for the whole family will help your children conceptualize how much things cost while on vacation.

During this stage, it’s also beneficial to have your children examine the hidden costs of when leaving on vacation. For instance, finding room and board for your pets while you are gone and making sure that your bills are paid before you leave. Having your children involved during these steps will increase awareness of all the minor and hidden costs that add up over time.

Challenge them to score a deal

Have your children look at the overall budget of your trip and challenge them to find a way to save. This will force them to look analytically at your budget and transition into problem-solving mode. You might be surprised by what they suggest. If your kids need some guidance maybe suggest to them how to alleviate minor costs within the budget. Does it cost more to eat breakfast out instead of at the hotel? Have them find a solution to eliminate unnecessary expenses.

Children of all ages can be involved in vacation planning. Whether you have teenagers or young tykes, it’s never too early to learn about money and why it’s important to start saving earlier rather than later. Don’t forget to stop in and set your youngster up for a successful financial future. Falcon’s staff can help open their first accounts and help them get ready for their bright futures.