Saving for a holiday
Save now and play later
Whether it's snorkelling on the Great Barrier Reef or going on
safari in the Serengeti, your next holiday will cost money. It's
much better to save as much as you can before you leave, so you
don't rely entirely on your credit card. You don't want to spend
the next year paying off your trip debts.
Work out your holiday costs
The cost of your holiday depends on where you go and how you
like to travel. Some costs to consider include:
If you are exchanging money here or overseas shop around with a
few different operators. Different fees and charges can have a big
impact on how much cash you receive.
- Airfares or transport costs
- Visa and passport charges
- Travel insurance
- Transport at your destination e.g. hire car
- Entry fees to sights and activities
- Entertainment costs
- Extra money in case of emergencies
- Charges for using your phone for calls while you're
Think about how you are going to access money while overseas. If
you carry lots of cash around, you could risk losing it. You
could get a travel prepaid card or you could talk to
your bank about how you can access your money overseas without
paying high fees.
For more information on travelling and safety precautions, see
the Australian Government's Smart
Save as much as you can
Cut back on spending before you go and you'll have more money to
spend on your trip. Use our budget planner to see where your money
goes and find ways to spend less on non-essential items.
For example, Paul is going to Mexico and decided to save money
by not going out for dinner for 2 months. He saved $300, which he
put towards dining out on his Mexican trip.
Look for savings in your:
- Entertainment costs
- Restaurant meals
- Takeaway lunches and coffees
Growing your savings
Once you've cut back your spending, you should make the most of
Think about putting your money where it will earn interest, such as a term deposit
or a savings account. These accounts will
give you a higher rate of interest than transaction accounts. Learn
more about the compound interest you could earn in a
Use the saving goal calculator to make the most of your savings
or try our app TrackMyGOALS.
Savings goals calculator
Case study: Laura and Kaz save up for Europe
and Kaz dream of backpacking around Europe. They have only 18
months to save as much money as they can for their trip.
Laura opens an online savings account with an interest rate of
5% and deposits $500 every fortnight. She resists the temptation to
dip into the money as she knows she will lose some of her interest
if she does. Kaz saves $500 of her pay every fortnight in her
everyday transaction account. She tries not to use the money but
sometimes takes out $50 to get her through to the next pay day.
Eighteen months later, Laura has saved more than $20,700, while
Kaz has only $16,200. Hard-to-access, high interest accounts can
make a big difference.
The more money you can save before a
holiday, the better. Start saving now by opening a savings
Last updated: 12 Apr 2016