| Just as you do when you’re working on a plan to meet your financial objectives, put your travel goals and priorities in writing. Warmer days are here again and that means many families are starting to plan their summer vacations. But, a holiday can be a significant expense, whether you’re staying in Canada or going abroad, so it’s important to think about some of the same things you consider when you build an investment portfolio:
ON A BUDGET Less than $1,500 The Robsons in Ottawa spent a week over the December holiday season at a Caribbean resort, so they’re looking for something lower key – and less expensive – to do with their kids this summer. Nine-year-old Josie has been studying hydroelectric power at school and has been talking enthusiastically at the dinner table about green electricity, so the Robsons decide to take her and 11-year old Eric to one of the sources. They seize the moment – before the summer rush and before Josie’s attention shifts to another interest – and book train tickets to Niagara Falls, with a hotel room overlooking this natural wonder. The price? Just over $1,000 (including taxes) for the four of them – leaving them with enough money for meals and a few souvenirs. Across the country in Vancouver, the Frasers are looking for something a bit more adventurous. Their son, Brad, is 14 and fascinated with boats of all shapes and sizes. He has been bugging his parents to take him and 12-year-old Lucy on a cruise for months, and they finally relent. But instead of booking in peak season, they decide to save money by taking an October berth. Their fournight Pacific coastal cruise, round trip from Seattle, in an inside stateroom will cost them about the same amount as the Robsons’ vacation – just over $1,000 (including taxes) for the entire family. READY TO GO $1,500 to $3,000 The Everest family in Halifax has a bit more room in their budget, thanks to careful saving throughout the year. They book a spring holiday at Disney World®, keeping a promise to take their two kids there when the older one, Derrick, turned 10. He’ll get to spend his birthday racing from ride to ride and singing “It’s a small world” at the top of his lungs. The Everests’ flight to Orlando, rental car and six nights’ accommodation will set them back about $2,800 (including taxes). Passes to Disney World will put them a little over budget – but it’s worth it for the excited gleam in their childrens’ eyes. In Edmonton, the Abbots have something similar in mind, but their kids have already been to Disney World so they decide to try out Disneyland® in California. Even mid-summer, in July, they are able to arrange roundtrip airfare to Los Angeles and three nights’ accommodation at a hotel right across the street from Disneyland’s main gate for just under $2,000. Airport transfers and a three-day pass to the park will cost them another $800. And they’ll have a few hours to explore the stars on Hollywood Boulevard in L.A., so there’s something in the trip for the parents and the kids. LIVING IT UP More than $3,000 The Masons in Toronto want to give their children a taste of Europe. They book a flight and six nights in London at a hotel across the River Thames from the Houses of Parliament and Westminster Abbey. Their 15-year-old daughter, Angela, can’t wait to visit Madame Tussaud’s famous wax museum and their 13-year-old son, Colin, is a big Harry Potter fan who is thrilled at the prospect of setting foot in England. Their airfare and accommodations will cost them about $4,000 – but the memories will be priceless. The Lavoie family in Montreal, including six-year-old Hélène and eight-year-old Marc, are ready to splurge as well. Their priority is spending a longer time away together and they decide the best way to do that is to rent a cottage in the Laurentians. They fall in love with a four-bedroom chalet on a lake with a dock and a canoe and spring for the $1,850 per week cost for two splendid weeks in August. The location, about an hour and a quarter away from home, means the drive there will be relatively inexpensive and they can cook their own meals in the well-equipped kitchen. NOW IT’S YOUR TURN! Of course, vacation possibilities are endless, so now that you’re inspired, it’s time to work out what your family wants to do. Sit everyone down and do some brainstorming. Talk about your interests and hobbies. Then get creative. If your family likes professional sports, consider a trip that takes in a few different cities. New York, Philadelphia and Washington are all within driving distance of each other and each host a professional sports team. If you enjoy the outdoors, think about planning a camping expedition in a national park – there are many in both Canada and the United States. If your family is keen on city-based museums and theatre, pick a big urban centre – perhaps even the city where you live – and explore it head to toe. Just as you do when you’re working on a plan to meet your financial objectives, put your travel goals and priorities in writing. That way, you’ll know exactly what to trim if you run out of time or money. For example, your primary goal may be to go bird-watching in a nature reserve, but a secondary goal could be to go whitewater rafting. If you can’t find a location that allows you to do both, prepare your entire family for the idea that you may have to go on a separate trip, maybe next year, to accomplish the second goal. Once you’ve determined your goals, you need to work out a budget that you can afford while you continue to save for other important objectives such as your childrens’ education and your own retirement. Keep in mind that transportation and accommodations are generally the biggest expenses, so start your calculations there. Remember to build in a contingency budget for the costs you can’t accurately predict, such as restaurant bills and cab fares. You may want to do some preliminary destination research and costing online, but you’re now at the stage when a travel agent can be tremendously helpful. Choose one who is a specialist in the geographic region that interests you and you’ll get plenty of insider tips that can help you plan a more satisfying trip and save you money. After you’ve made your booking, take the opportunity to teach your children a valuable financial lesson by encouraging them to save up for the trip too. Start piggy banks or, if your kids are older, open a bank account dedicated to your holiday. Tell them that you will convert everything they save from their allowance into the appropriate currency so they can bring it with them on the trip. Explain that they can use the money to buy souvenirs that will help them remember the experience once you’re all at home again. Help them understand that your vacation isn’t free and that by setting aside some money of their own, they’ll enjoy more flexibility to make purchases while you’re away. The bottom line for you and your kids is that when you plan well in advance, you can achieve your goals. That’s true when you’re building a financial plan, and it’s equally true when you’re developing the itinerary for your dream vacation. In both cases, it helps to consult the experts – a financial advisor and a travel agent – to help you realize your vision. Their expertise can help you determine what you can afford, present you with a range of options that meet your requirements and offer guidance as you make choices that get you where you – and your family – want to go. Happy travels!
TOP 10 TRAVEL TIPS
All travel cost examples except the Laurentian cottage were provided by Flight Centre and are accurate as of February 8, 2007. The Laurentian cottage cost was provided by www.atthecottage.com and was accurate as of the same date. All examples cover major vacation costs (travel, accommodations, rental cars and park passes) and do not include variable expenses including meals, attraction fees and souvenirs. |
© Copyright of this article is held by The Manufacturers Life Insurance Company (Manulife Financial).
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