Trying new restaurants, visiting world-famous attractions and enjoying a nice hotel room are some of the best parts of a vacation. They’re also things that tend to cost money.
And if you don’t pay attention, you can easily fall into the trap of spending too much during your travels. It’s the one mistake many travelers often make when going on a trip.
“‘Vacation mindset’ can be to blame for overspending on vacation,” Julie Everett, a senior financial coach at Financial Finesse, told HuffPost. “The excitement of doing something other than your usual day-to-day can cause you to lose sight of the long-term consequences of spending more than you can afford.”
Countless people prioritize travel as part of their lifestyle, and there’s nothing wrong with spending your hard-earned dollars on travel ― within reason.
“Vacations are meant to be enjoyed, but spending recklessly while away can have lasting consequences on your financial standing,” said Courtney Alev, a consumer financial advocate at Credit Karma. “Do the work before you plan and head out so you know your spending limits.”
To help travelers do just that, we asked Everett, Alev and other personal finance experts to share their advice for avoiding overspending on vacation.
Resist peer pressure.
“Social influences, especially when traveling with friends or family, can contribute to overspending as individuals may feel pressured to participate in costly activities or dining experiences,” said Kara Stevens, the author of “Heal Your Relationship With Money” and founder of The Frugal Feminista.
Indeed, a 2023 survey from Credit Karma found that more than a third of millennials adnd Gen Zers have a friend who encourages them to overspend.
“Even if you feel secure in your financial limits, it can be especially difficult to say ‘no’ to a friend’s expensive request while on a trip together,” Alev said. “Have conversations about money with your travel partners both before and during your trip. Knowing what each of you is comfortable spending can prevent awkwardness or resentment, and make your vacation more fun!”
Social media and childhood experiences can also put pressure on travelers to spend more than they should on travel.
“You see other people on your feed having lavish vacation experiences and want to ‘keep up,‘” said Stephanie Zepeda, a therapist specializing in financial therapy for couples, families and individuals. “Or you never got to go on…