Many people are caught off guard when planning their summer vacation, so it is important to start saving as early as possible. Whether you are planning an international trip or a quick weekend getaway, the reality of the costs eventually sets in.
Saving for summer vacation does not have to be a source of stress or debt. By taking action early and strategically leveraging tax returns, salary, or dedicated savings accounts, you can ensure you are fully prepared for the summer season.
Why start planning in winter or spring
Knowing when to start saving for summer vacation is just as important as how much you save. Starting early lets you enjoy your holiday without the last-minute budgeting stress. This is especially true for families of four, where expenses can quickly add up and budgeting is often overlooked.
Planning in the winter or even spring helps you save more for the holiday, get better deals, or have peace of mind without something else to worry about. That’s because spreading the cost of a trip over a few months is more manageable for a monthly budget than attempting to finance the entire expense in the weeks leading up.
On average, data shows that in 2025, people in the Netherlands paid approximately €2,378 per person for a vacation. For a family of 4, a one-week vacation can rapidly add up to €7,500 or more. Instead of setting aside €500-€1,000 each month until June, waiting until May would require setting aside €3,000, which is unrealistic for most household budgets.
Define your total vacation budget
Before opening a savings account and starting to set money aside, you must determine exactly how much you need to save and why. A common mistake people make is failing to consider all the small expenses and focusing only on the “big ticket” item. To create an accurate target, you must map out all potential costs.
Break your budget down into specific categories:
- Transportation: Flights, gas, rental cars, and parking fees.
- Accommodation: Hotels, resorts, or campsite fees.
- Food and Dining: This is often the most underestimated category. Will you be eating out for every meal, or cooking some meals?
- Activities: Guided tours or museum tickets
- Hidden Costs: Fees, entertainment, insurance, phone bill etc.
Once you know how much you need to spend, determine how much to pay upfront and what percentage to pay during the trip. This will help determine how to budget and when to spend or save.
Set money aside strategically
Setting money aside is where you need to pay attention, as most families lack a strategy or process. The simpler way is to create a savings account and route 10-20% of your income into it. Automating the process helps you stick to the plan and prevents the temptation to spend these funds on non-travel expenses. It’s a good strategy that ensures you’re saving for summer vacation without having to monitor or handle the transfer yourself manually.
If you already have a 50-30-20 rule and are saving, you can flip the script. This means you can save 50% of any extra income and add it to your vacation budget. This approach allows you to enjoy a portion of the money now while heavily subsidizing your future travel.
Invest your short-term savings
Money that sits idle in your account will likely lose value due to inflation. If you are planning a trip in 6 months, that won’t have such a big impact; however, putting your money in a standard account with zero interest is a missed opportunity.
There are alternatives to that even in the Netherlands. If you are planning for a longer summer holiday and you have a year to save, you can use Yieldfund to save while also getting paid weekly. You can save the lump sum at once, receive it after a year, and also earn high interest without any effort.
Alternatives include bonds or similar investments that last for 6 months to 1 year, or simply selecting a savings account with a higher-than-normal interest rate.
Create a challenge to make budgeting fun
To make the process easier, you can gamify it and make it fun for you and your family. For example, you can set aside €1-€2 every day to complement your existing budget. Another challenge is to save the euro amount that matches the current date.
Making saving entertaining keeps the entire process easy to follow and doesn’t feel like you are giving something up.
Saving money requires discipline, which can sometimes feel restrictive. To maintain motivation, consider gamifying the process with a savings challenge. These challenges provide a structured, often entertaining way to accumulate cash.
Leverage your tax refund
Instead of using your income tax return as spare money, which can easily be spent without making full use of it, you can set it aside as an aid when saving for summer vacation. While the amount you will be getting back from the tax authorities is unknown, your priority when saving should be an allocation from your monthly earnings.
Once you know how much you will receive for your tax refund, if any, then you can budget it accordingly, supplement your budget, and decrease the monthly contribution for the remaining months. Doing this not only helps close the gap but also doesn’t reduce your everyday lifestyle.
Consider the vacation money
In the Netherlands, everyone receives vacation money or vakantiegeld. The way it works is that the company holds 8% of your monthly income and pays it back to you in May. This is a great way to budget for your summer holidays since you know how much you will be getting back. In fact, it is a way of forcing you to save.
Relying on the vakantiegeld as your key source of funding for your holiday means you will have access to the money only in May, and you can’t plan ahead. Use the vacation money as an extra budget, but still plan early to save smaller amounts. Additionally, you can include the expected amount in your final holiday money.
Book trips early to maximize value
Saving money is only half of the equation; spending it wisely is the other. To secure the lowest prices, you should book flights and accommodations months in advance or actively look for deals. Keep in mind that while some costs are upfront, others, such as dining and entertainment, occur only during the trip.
If you begin saving in January and find a deal in February, you can use your accumulated savings to book immediately. Applying this strategy to hotels and transportation ensures you maximize your budget before your holiday even begins.
Start your summer relaxation in the winter
The difference between an enjoyable and a stressful summer trip starts in the winter months. Planning ahead helps you enjoy a memorable vacation without stressing about the budget just one month before your departure.
By defining a budget, automating your savings, and budgeting your vacation money, you will be more prepared than 90% of the people you meet on your next summer holiday. The earlier you begin, the better prepared you will be when summer finally arrives.
