How to save for a holiday

A UK coast with a white and blue building by the shore, with boats in the harbour
Maisie Pollard

- SEO Specialist committed to ending UK poverty by helping CAP reach more people in need.


Dreaming of a break? Discover practical tips on how to save for a holiday that fits your budget, from smart budgeting to cutting travel costs. 

Holidays can be a lovely way to rest and recover, but when money’s tight, even the idea of taking a break can feel out of reach. At CAP, we understand that finances can look different for everyone. This blog shares practical ways to save for a holiday – whether big or small – while being kind to your budget and wellbeing.

A green icon of a wallet with a pound coin next to it.

Remember

A holiday should be a source of joy, not new debt. Always avoid borrowing money to fund your break, as this can quickly turn a well-deserved rest into a long-term financial burden.

How to budget for a holiday: top saving tips

If a break is something you’d love to work towards, here’s how to plan for it in your budget:

1. Work out how much spare cash you can save

The first step to saving for a holiday is to know how much money you can get together before you go away. This is where taking a deeper dive into your finances really helps. 

Start by downloading a budget worksheet. This’ll help you break down all your essential costs, knowing how much money you’ll have left to use towards holiday savings.

2. Work out what the total cost of a holiday will be

Start with a rough idea of what your holiday might cost. Think about: 

  • Travel (flights, airport parking, train fare, fuel)
  • Accommodation (camping pitch, Airbnb, hotel)
  • Food (eating out or cooking your own) 
  • Activities (entry tickets, excursions, treats) 
  • Extras (souvenirs, sun cream, ice creams etc.)

It’s also worth factoring in extra in your budget for unexpected costs, such as cancellations, travel delays or health emergencies. Compare the prices of different travel insurance options to make sure you’re covered.

If you’re considering a holiday aborad, compare the price of booking your flights separately to a package holiday. Traditionally, booking separately was seen as a cheaper option. But these days, you may find some cheaper package deals that include things like transfers and hold luggage, essentially working out cheaper than booking these separately.

3. Use a separate savings pot

Divide the total cost of the holiday by the number of weeks or months until your holiday. For example, if you estimate your holiday will cost around £200:

£200 per person ÷ 6 months = £33.33 per month per person (around £8.33 per week).

Small, regular amounts are easier to manage and it’s easier to save when the money is kept separate. You could: 

  • Shop around for the best savings account deals using comparison websites

  • Use a budgeting app that lets you set savings goals

  • Get motivated with some money saving challenges

  • Try the no-spend challenge to boost your holiday savings

Need help to save?

Explore free money coaching workshops near you to learn how to budget, save and get the most from your money

Working out how much spending money you’ll need to take on holiday can be tricky to calculate, as it’ll depend on a number of factors: eating packed lunches or eating out, budgeting for activities or sightseeing, and the amount of time you’ll be on holiday for. Think about what an average day on your holiday might look like and go from there. If you’re really stuck, use Tui’s spending money calculator to give you an idea of how much you might need to take. 

Tips to save money on flights

If you’re specifically thinking of booking a holiday abroad and want to know the best way to get a good price on flights, here are some top tips:

1. Look out for flight release dates

It’s worth noting that although booking early isn’t guaranteed to save you money, you may be able to get cheaper flights when they’re first released by airlines for the holiday season. The reason for this is that some airlines increase their prices when a flight is in more demand, as people are typically willing to pay more. Check each airline’s website for more information.

A green wrist watch

Feeling spontaneous?

If you’ve already saved up some cash for a holiday, you could grab yourself a bargain with a last-minute deal. Lots of holiday companies sell off holidays a few days before, so it’s worth checking. Just make sure you already have the money saved with this option, as well as travel insurance. 

2. Check school holiday dates

Find cheaper family getaways by checking school holiday dates in other UK regions – a different half-term or summer break could mean cheaper flights from a nearby airport. Also, keep an eye on your children’s inset/​training days, as flying out on these non-teaching days can often save you money.

3. Consider a different destination airport

Often, flights travel into a popular airport of a country or tourist destination, but have you considered finding flights to alternative airports? Sometimes, budget airlines can fly out to other airports away from the destination, making it a cheaper option.

One thing to remember is that flying to a different airport may mean that you have a longer drive or transfer time to your destination, so you’ll need to factor in extra costs like care hire, taxi fares or public transport costs.

4. Check the cheapest days to fly out

When booking flights, have a look to see if there are other days that are cheaper to fly on. Fridays and Sundays are typically more expensive, so you could adjust your holiday dates slightly to see if you can find a better price. Have a look at a calendar view on the airline or flight comparison’s website to look at all your options.

A green wrist watch

CAP top tip!

It’s also worth looking at flight times; if you’re happy to sacrifice a bit of sleep, you could find a better deal with an early morning or late night flight. Just make sure you factor in how you might get to the airport or to your accommodation if public transport isn’t running.

5. Consider the added extras

You can be extra savvy and save some money with the added extras of flights: 

Cut luggage costs 

Hold luggage can quickly add up, especially with budget airlines. To save, consider sharing a suitcase with a travel companion or opting for a smaller carry-on that fits in the overhead locker. Just double-check airline size and weight limits to avoid unexpected fees!

Assigned seating: sit together or save? 

You might find airlines automatically assign seats to your group when you check in online, usually 30 days before your flight. If you’re looking to save, you can choose not to pay for specific seats, but just know your party might be split up.

CAP top tip!

Many people have supermarket loyalty points, credit card points (if used responsibly and paid off) or other reward schemes that could potentially be converted into flight vouchers or discounts on activities/​food during a holiday.

Define what a holiday means to you

It’s worth mentioning that everyone is different, and not every holiday has to include flights or luxury hotels to still be enjoyable. A holiday’ might mean a day trip or overnight stay at the coast, a few nights camping or simply a break from your usual routine. For me, my most memorable childhood holidays were family camping trips together!

Start by asking yourself, what kind of rest do I really need? Then plan that around your budget. Making memories with family doesn’t have to break the bank, and don’t feel pressured by what you see on social media as the perfect’ holiday. Ultimately, a holiday is about rest, connection and creating memories – not about luxury or comparing yourself to others on social media

CAP top tip!

We also recommend that if you have an emergency fund’, try not to dip into this for a holiday, as you’ll want to use this for unexpected life costs so that you don’t get into financial trouble.

Top tips to make a holiday feel special without breaking the bank

A holiday is what you make it, and you can make any time away with family or friends feel special without the pressure to spend lots of money. 

Use what you have

If you have a tent or access to one, camping (even in your own garden) can be fun for all the family and help you connect with nature.

Be holiday savvy and shop around

You might find discounts by calling travel agents to see if they can beat the price you’ve found online, going on holiday at the end of summer, as well as some great last-minute package holidays if you’re feeling spontaneous! 

Borrow or swap

To save some cash, you could borrow camping gear or swap accommodation with a family or friend who lives in a different part of the country.

Stay local

Explore areas nearby that you’ve never properly visited, like nature reserves, hidden walking trails or small villages that can give a sense of escape. Use apps like AllTrails to see what’s near you and see if your local community has any events, like summer festivals, for a day out.

Find your path to financial freedom (and your dream holiday!)

Saving for a holiday, like managing any part of your finances, can feel overwhelming. But with some practical tips and expert support, that well-deserved break can become a reality.

At CAP, we believe everyone deserves to live a life free from the burden of unmanageable debt and financial worry. We’re passionate about equipping people with the tools and confidence to handle their money well. If you’re looking for more personalised support to take control of your budget, reduce stress and even build savings for those special moments like a holiday, our free money coaching services can help. 

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