Spring is finally here and summer is just around the corner, making this an ideal time to start thinking about summer vacation plans. Finding a vacation you can afford as well as enjoy can be tricky but, with a little planning, it's possible to not break your budget on your summer holiday.

Use these five tips to make your vacation affordable and relaxing:

  1. Set a budget. With anything related to finances, budgeting is critical. Do some research online to come up with an estimate of what your vacation will cost. This amount will be your budget. Once you have settled on that amount, stick to it. Don't keep adding new activities that will derail you financially.
  2. Start a travel savings account. Set up a specific savings account for your vacation and put something aside monthly. Your bank may offer a vacation savings account that works similarly to a Christmas savings account; ask for details. With these savings out of sight and out of mind, you will know your vacation funds will be available when it's time for your trip. Figure out how much you need to set aside each month, and make it a habit to build up your savings. After your trip, keep contributing to your vacation savings account to get a head start on next year's vacation.
  3. Cut back on spending before your trip. About three months before your trip, take a look at what you can temporarily cut out of your budget that will help you save for your trip. Entertainment expenses are a key category where you can find some last-minute savings. Whether you eat out less during those three months, skip the extra coffee runs, cancel a short road trip or two, or put off seeing a few new movies at the theater, the savings can add up quickly.
  4. Use prepaid debit cards or credit cards. Once you have your savings built up, consider loading those funds on a prepaid debit card to ensure that you don't exceed your budget. Or, you can consider using a credit card and pay off the balance from your savings account all at once. If you have a rewards credit card, you may also earn cash back or other rewards for your trip's expenses.
  5. Monitor your accounts. Let your bank or credit card issuer know that you're going on a trip to they don't flag any of your purchases as suspicious. Many banks and credit card issuers offer online service or mobile apps that allow you to create a travel plan yourself, without contacting them. While on vacation, keep monitoring your account for any fraudulent or suspicious activity to prevent becoming a victim of identity theft. Continue to monitor your statements for transactions that may trail your trip.

This information is provided as a courtesy by Iowa State Bank in partnership with the Iowa Bankers Association and is for information purposes only.