Take a moment to remember back to the days when you were a kid planning for summer vacation. It was so easy back then, wasn’t it? Your parents made all the plans and you had a good three months of stress-free time on your hands. Today, things are different. You’re the one in charge of planning and those family trips are no longer covered by mom and dad. So now is the time to plan ahead. When it comes to finances, Central Federal has you covered. Here are 6 ways to save for summer vacation.
Open a Savings Account
According to WalletHub, “savings accounts are designed for earning interest on your deposits, deferring your spending and earmarking the funds for specific purposes” – like summer vacation. Central Federal offers you many options for putting away money on a regular basis. The need for creating good financial habits seems more important than ever in today’s economy to help you prepare for vacations, emergencies, and even retirement.
Transfer from Checking to Savings
Take advantage of our automatic transfers from checking to savings, where you can decide how much money you’d like to put into your vacation fund. We recommend this process as it’s easier to save more when you have an account in place. Central Bank’s online banking and savings calculators can also help you plan moving forward.
What are you currently spending your money on? Mortgages, rent, and utility bills are fixed costs that you can’t afford to miss each month. What you can miss out on, however, are regular trips to the mall or to your favorite restaurant. Try cutting costs on items like clothing or food while saving up for summer vacation by discount shopping and making more meals at home.
Start a Budget
While you’re cutting costs, you might as well create a budget to keep you on track with your spending and saving. Like we mentioned before, your fixed costs will not change much per month. Write those down in a spreadsheet, along with any other monthly costs you may have including grocery bills, gas station visits, and so on. Then, keep track of how much you’re saving and give yourself a goal you’d like to reach.
Research Vacation Pricing
The goal you’d like to reach for saving should equal how much your ideal trip will cost. Are you planning to fly to your destination? Baggage and car rentals can be additional expenses you’ll want to plan on. How long will you be out of town? Staying with family members is always cheaper than paying for a few nights in a hotel.
Consider Checking Accounts with Travel Incentives
Make your typical purchases count by opening a checking account that allows you to earn more while you’re spending now. Central Federal is working to incentivize travel for its customers. More details to come soon!
Share your summer vacation plans with one of our friendly and experienced bankers. They will be more than happy to help you start saving for your trip today. You can also give us a call at (573) 364-1024.