H&R BLOCK: DOLLLARS AND SENSE

Avoid a vacation financial hangover

You know the feeling. Whether it’s regret after an impulsive purchase, the sinking feeling as you open your credit card bill after the holidays, or getting the check after a lavish meal. At one time or another we have all experienced a financial hangover. It’s a feeling of anxiety, remorse or even shame after we have spent more than we should have.

Vacations often lead to financial hangovers. It is easy to overspend while traveling. In addition to the added expenses of lodging and dining out, vacations take us out of our routines and can make us less conscious of our spending. Whether you’re planning a weekend camping trip or a cross-country journey, a little preparation can go a long way toward protecting you from a financial hangover when you come home. In fact, vacations offer a great opportunity to practice healthy money management and to teach these skills to your children. For starters, plan ahead and consider involving your teens in the planning. Where will you go? What kind of accommodations do you want? How will you travel? What will you do? How long will you be gone?

Involve your kids in developing a travel budget. When you know what your vacation entails, you can determine how much you need to save and what you can afford to spend. Do you need to drive instead of fly? Should you camp or stay with relatives? Should you shave a day or two off the trip?

Also, involve your family in saving for the vacation. Decide how much money you need to set aside from each paycheck and include your teens in the process. Use a jar to collect money or a white board on the refrigerator to track your weekly progress. You can even ask your teens to make small contributions from their allowance.

In addition, involve your whole family in financial decisions throughout the trip. For example, set a daily food budget and decide as a group where and how you will eat each meal. For example, perhaps you decide on a fast food or packed lunch in favor of a more expensive dinner.

Involving kids in the process of planning, saving and managing money during your vacation teaches them the benefits and rewards of impulse control and delayed gratification. It shows them that money is a finite resource and demonstrates how small sacrifices now can lead to improved quality of life later. These are important skills they will need to develop and if you don’t teach them, who will?