The struggle is real these days, at least when it comes to consuming the news. Whether it is the thousands of weekly layoffs happening all around us, people struggling to pay for persistently high food prices, or — depending on where you live, if we didn’t already have enough to worry about — ever-spiking fuel prices thanks to a war thousands of kilometres away, there is no way to sugarcoat things: the economy, whether regionally, nationally, or globally, is not looking good.
While this may not necessarily affect every individual or family, there is always the worry that even if you are doing well now, that could change later on. That is why it is important to be responsible, prudent, and frugal with your money.
So, with this as the backdrop, would it be irresponsible to take a full family vacation at this point? This is a question our family has been contemplating as we think about taking a vacation. It has been close to two years since we last took a major vacation, and we do allocate a portion of our family savings toward future travel and vacations. So while we already have most of the money needed for a vacation saved, that does not necessarily mean it is the right time to take one, as some or all of that money could instead be used to pay down debt, invest, or strengthen our financial cushion.
The Experience vs. Financial Prudence
For us, the idea of taking a vacation at this time is all about the experience, while still recognizing that it may not be the most financially sensible decision right now — even if we have the money saved. Given that we have two kids, one of whom has only been on one vacation in their lifetime and does not even remember it, this is more about them than it is about us as parents.
Yes, I would love to go on a vacation, but I can do without one. A vacation can wait. Time, however, does not. Our kids are growing up, and postponing a vacation for a few more years — while potentially the right financial decision — could also mean missing out on valuable memories and experiences together.
Some of our best and most memorable moments have come from family vacations, especially the ones where we travelled with the kids. It simply is not the same without them. To me, the kids are what make the vacation more memorable and enjoyable.
The Alternative to a Vacation
Okay, so if not now, then when? How do we know when the “right” time is?
I have been hearing bad news about the economy for more than two years now, at least here in Canada. Who is to say things will not stay like this — or even deteriorate further — for another one or two years? By then, my oldest son will be a teenager, and my younger one will already be halfway there.
But let us assume we make a family decision to postpone the vacation until at least the second half of 2027, or even early 2028. That is another 12 to 18 months from now. What do we do with the money we specifically saved for that vacation?
If the money was saved with the intention of eventually taking a vacation, would it not make sense to simply keep it on the side until then? Sure — and that is likely what we would do, unless we had debt to repay or wanted to invest part of it. But then again, despite the economy going through a downturn, the stock market has continued moving in the opposite direction, with many stocks sitting near all-time highs. That makes investing the vacation money feel less appealing, unless you are committed to dollar-cost averaging and are not overly concerned about short-term pricing.
While we have not yet made a final decision, if we do decide to book that long-pending vacation, we will make sure to stick to a budget and enjoy it without overspending or returning home with a large credit card balance.
Coming home with great memories is only meaningful if those memories did not come at the expense of financial stress afterward. Every family is different, but what matters most is that if you are going on a vacation, you have planned and saved for it properly — and that you stick to a budget while you are there.