News

Budgeting: Saving money over the summer

  • Published
  • By Airman 1st Class Matthew Hubby
  • 436th Airlift Wing Public Affairs
DOVER AIR FORCE BASE, Del. --  Summer is a time for many families to take vacations and spend more time together.

For some, this means packing up the car and taking a week-long road trip to the grandparent's house. For others, it means loading everyone up in a plane and flying to the nearest theme park.

But trips cost money, be it at the time they are taken if paid for by cash or for months or years if paid for with credit.

"Ideally, a family would save throughout the year for vacation expenses," said Jennifer Aubrey, 436th Force Support Squadron community readiness consultant. "For example, assuming a 1.5 percent savings rate, if a family started saving $100 a month now, this time next year they would have approximately $1210 for vacation."

One way to save money for specific summer vacations or activities is to have an allotment go from a member's military pay directly into a savings account. Preferably, an account that is not easily assessable.

"If a family charges a $1,200 vacation on their credit card, they would have to divert funds over the year to pay it back," said Mrs. Aubrey. "At an 18 percent interest rate, the family would pay about $120 dollars in interest, making their trip now cost $1,320, instead of the $1,200 it would have been if they had just paid in cash. A family saves quite a bit by paying cash for a vacation, as opposed to charging it. By saving up for a vacation and paying cash, families can go on vacation without worry about how they will pay for the vacation once they return home."

Saving over the year can be difficult, so it is important to set goals that you can accomplish to get you where you want to be financially, said Patricia Edwards, 436th FSS Airman and Family Readiness Center consultant.

"A family should look at a vacation as a short term goal in a year, and should set aside what they can as often as they can, to stay within their goal of having a vacation," said Mrs. Edwards. "This is true for anything the family would like to do over the summer, be it a family trip or a large purchase."