Note from the editor: This month, we’re proud to introduce Family Finances, a regularly appearing column presented by First Security Bank. Little Rock Family is dedicated to strengthening families in every aspect, and in our new editorial column we’ll explore ways that families can make healthy financial choices. To suggest a topic or ask a question for an upcoming Family Finances column, email Blair at BNeel@abpg.com.


Every time my wife and I sit down to plan the annual family summer vacation, I can’t help but think of Clark Griswold firing up the family computer to break down a cross-country journey to Wally World in the 1983 classic “National Lampoon’s Vacation.” I can’t help you with a crazy cousin-in-law or an aunt and her untimely demise in the backseat, but I can offer you five tips on being fiscally sound in your trip planning.

1. Cash or Credit?

Paying for your trip with cash can help you stay within your budget and prevent overspending. It’s easier to see how much cash you have left than to figure up your credit card balance. You also won’t have to pay off your trip little by little, or pay any interest on your vacation purchases if you pay for your trip with cash.

On the other hand, the protection offered by using your credit card can be a benefit, too. For instance, if you buy refundable airline tickets with your credit cards, the airline must forward a credit to your card company within seven days of receiving your application for a refund. Then there’s the possibility to receive travel insurance when paying with your card, including baggage protection or travel accident insurance.

Bottom line, consider the benefits of both. It may make sense to mix and match your payment methods depending on what costs you’re covering.

2. Money Back Guarantee?

What happens if you are forced to cancel your trip for an unforeseen reason? Will you still have to pay? In most cases, you’ll be charged with a penalty. Before booking the trip, research your options and the cancellation process. It’s stressful enough to cancel your vacation; you don’t want the added frustration of paying for a trip you don’t get to go on!

3. Budgeting

If you have a propensity to overspend, try setting a daily budget for yourself. You can make this as simple or as in-depth as you’d like, from setting a spending cap for each day to breaking down how much you’d like to spend on each activity.

Instead of overspending, try over-budgeting. Plan for those surprise expenses before they surprise you. Add $25-$50 per person per day into your existing budget to build in the cost of that phone charger you forgot to pack or cab ride you didn’t expect.

You can also leverage technology as your aid in vacation budgeting—a variety of travel budget calculators can be found online. For tracking expenses while you travel, try a phone app, such as Trail Wallet for iPhone users; Toshl is a good bet for Android users.

4. Health Insurance

Before traveling, make sure you know what your insurance will cover while you’re away. If you have an HMO or PPO plan, service from an out-of-network provider will cost more. It’s a good idea to take a list of in-network physicians and hospitals for the area in which you are traveling.

And if traveling outside of the United States, your insurance may not cover you at all; call the claims department and ask. If you find you will not be covered, consider a short-term supplemental policy to cover accident or sickness coverage. Coverage and terms vary from policy to policy, so make sure you understand what’s covered and what’s not.

5. Protect Your Money

Ensure the safety of your money by avoiding carrying large sums of cash. Debit, credit and ATM cards are the safer way to go, at least until you arrive at your destination. If you’re using cash as your daily budgeting technique, you can withdraw smaller amounts as you go.

I can’t promise that you won’t drive off the road and into the Grand Canyon, or arrive at your destination only to find it closed for repairs like the Griswolds, but you might find yourself better prepared and more at ease by considering these five commonly overlooked vacation planning steps.

Dale Nicholson, III, AAMS is a Financial Advisor at Raymond James & Associates, Inc. Member New York Stock Exchange/SIPC, located in Little Rock. Dale is a former sports anchor turned financial advisor. He describes himself as a food addict, sports fanatic, golf hacker, fish catcher, husband to Cassie, and father to 6-year-old Natalie and 3-year-old LD.