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.
Here are some tips on building your holiday savings fund so you
can really enjoy your big trip.
How much will your holiday
The first step in saving for a holiday is to work out how much
you'll need. The cost of your holiday will depend on where you want
to go and how you like to travel. Some costs to consider
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
Considering these costs will help you work out how much you'll
need for your holiday. The next step is to put a savings plan in
place to reach this goal before you take off.
Work out how much you'll need to save each week to reach your
Savings goals calculator
Think about how you are going to access money while overseas. If
you carry lots of cash around, you risk losing it. You could get a
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 traveller
Australians and travel insurance
Our Australians and travel
insurance infographic explains why Australians travel, where
they go, what is covered and isn't covered by travel insurance and
how to get the best policy for you.
Tips to build your travel
With your weekly savings goal in mind, it's time to get serious
about reaching it. A great way to do this is by using a budget. By
cutting back on spending before you go, you'll have more money to
spend on your trip.
See where your money goes and find ways to spend less on
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 right across your budget.
Rein in restaurant meals
- Cut back on how often you go out for dinner
- Try cheaper alternatives on the menu
- Order water instead of expensive drinks
- Skip the dessert menu and get a cheaper alternative
Cut clothes costs
- Visit markets or secondhand shops instead of buying brand new
- Swap or borrow clothes from a friend
- Shop for classic, long-lasting items rather than styles that
will soon go out of date.
Save on groceries
For ideas on saving at the supermarket, visit our webpage for
ideas on how to save money on
Reduce takeaways and coffees
- Plan your meals for the week so you're not tempted to order
- Cook extra for dinner and eat the leftovers for lunch the next
- Eat breakfast before you leave home so you don't need to buy
- Fill a reusable bottle with water before you go out so you
won't need to buy drinks
- Pack snacks and fresh fruit to avoid buying food when you're
Trim the fat on your fitness costs
Visit our webpage for ideas on cheap ways
to get fit.
Grow your savings
Once you've cut back on your spending, make the most of your
savings by 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
It might also help to visualise your holiday so you keep in mind
what you are saving for. Our app will help visualise your progress
towards achieving your goals.
Track your savings goals on the go with our free app.
Case study: Laura and Kaz save up for Europe
Laura and Kaz dream of backpacking around Europe.
They have only 18 months to save as much money as they can for
Laura opens an online savings account with an interest rate of
3% 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 that has an interest rate of 1.5%. She
tries not to use the money but regularly takes out $50 a fortnight
to get her through to the next pay day.
Eighteen months later, Laura has saved more than $18,400, while
Kaz has only $16,394. 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 account.
Last updated: 09 Mar 2018