Learn to Plan Your Holiday Budget by Breaking Down Typical Holiday Costs

Read our article to find out how to plan your holiday budget by breaking down typical holiday costs.
Colby Brin
November 22, 2022
min read

Enjoying a holiday is a luxury many people look forward to each year, but holiday costs can add up if you don’t plan your holiday budget. A relaxing holiday in paradise or an adventure-packed week away from it all sounds amazing, but they don’t come cheap. If you’re worried about holiday costs getting out of control, a holiday budget can help.

This guide will cover why budgeting for your holiday is necessary, the average holiday cost, and how to create your holiday budget. 

Why is Budgeting for Your Holiday Important?

Having a budget is helpful when planning a trip because it will help you save for your holiday before you go. You can keep your finances on track while you’re away when you have already planned for the holiday costs. Researching and planning your holiday is fun and exciting, but paying for it can strain your finances. With some planning and a clear budget, you can ensure your holiday finances are sorted before stepping on the plane. 

Budgeting for your holiday is essential so that:

-   You don’t return having overspent
-   You won’t be stressed about spending money on holiday as your budget has already been planned
-   You don’t put yourself into unnecessary debt
-   You can enjoy your holiday to the fullest as you know exactly what you can afford
-   You have enough money to provide the basics as well as anything else you want to do while on holiday

Budgeting for your holiday means enjoying your well-earned break while keeping an eye on your spending. When you know what you can afford to spend, you can plan your holiday to suit your budget so you don’t overspend. Sticking to a holiday budget can help you relax, knowing that you aren’t living above your means.

What are Typical Holiday Costs?

The average holiday cost can vary significantly. You can expect to pay more or less depending on where you go, how long, and the time of year. Many factors contribute to holiday costs, and in case you miss any, we’ve put together a list of the typical holiday costs you’re likely to come across.

Here are some typical holiday costs to include in your budget: 

Food and drinks

Depending on the board basis of your holiday, you will need to plan for three meals per day plus drinks and snacks for everyone. Take a packed lunch for your travel day, so you don’t have to fork out for expensive airport food. Look for cheaper places to eat if you want to keep your food budget to a minimum.

Attractions and entertainment

What will you be getting up to while you’re on holiday? There may be excursions or trips you want to take or shows or attractions you want to visit. You can research the costs of the things you want to do beforehand to include them in your budget. 

Travel costs

Travel costs include everything you need to spend to get to your destination. This includes:

·   Petrol or public transport to get to the airport/train station/cruise terminal
·   Parking charges
·   Flights
·   Transfers
·   Taxis or Uber


Your accommodation cost will be one of the main chunks of your holiday budget. Along with travel, it will take up most of your money, so think about your options carefully. Wherever you stay, look at the review, the location, and the distance from local amenities. Sites like Airbnb have great offers, especially if you book last minute.

Important Documentation

Travel insurance is essential for your peace of mind on holiday. It covers several important things, including medical costs, so you must invest in travel insurance before your holiday. If the country you travel to has visa requirements, you will need to add these to your budget too. If your passport has expired, the current cost to renew a UK passport online is £75.50.

Medical costs

Travel insurance should cover you if the worst happens, but other medical costs must be covered. If the country you’re travelling to has vaccine requirements, you must pay for these in advance. Don’t forget items such as sun cream, insect repellent, medicines, tablets and first aid kits.


Add shopping costs to your holiday budget if you have your eye on something special for yourself or loved ones back home or can’t resist a trinket or two. 

How to Budget for a Holiday?

Budgeting for a holiday can be overwhelming when you don’t know where to start. A holiday is a great way to get going if you haven't budgeted before. To get started with your holiday budget, work out how much the average cost of your holiday will be using the sections above. Remember that it’s better to have too much than not enough, so be generous with your budget where you can.

-   Look at your current income and outgoings and determine how much you can save each month. This will give you a timeline for achieving your savings goal. For example, if your holiday will cost around £1,200, you’ll need to save £200 a month for six months
-   Use a budget calculator [SY1] to visualise your financial commitments and habits easily. This will help you to be disciplined and keep to your holiday budget. 
-   If you have any savings already, could you use a chunk of this to start your holiday fund? Don’t dip into emergency funds or take savings away from something important.
-   Look at the above sections and set budgets or limits for each cost.
-   If you see significant differences between holiday savings and expected costs, you must change your budget accordingly. This could be lowering the cost of your holiday or ramping up your saving efforts.
-   It’s easier to save when you break your savings up over time. You can do this easily with HyperJar Jars. You can realistically grow your holiday savings by adding to your jar or setting up a direct debit into your savings jar, so you save without noticing.

Our Tips for Saving for a Holiday

Saving for a holiday doesn’t have to mean changing your lifestyle completely. Just by making a few simple changes, you can keep the average cost of a holiday down. A holiday budget will help you calculate and save for your holiday costs and stay on top of them. 

 Here are a few of our tips for saving for a holiday:

-   Have a no-spend month to save for the holiday.
-   Travelling as a larger group often means you can get discounts or share the cost making it more affordable for everyone.
-   Create a HyperJar savings jar just for your holiday, so you keep it separate from your other savings and aren’t tempted to dip into it.
-   Have an idea of what you plan on doing while you’re on holiday so that you can calculate the costs. 
-   Holidays are a great time to relax, enjoy time with your loved ones and get away from it all. Use your holiday as motivation to save!
-   Put away little and often to help relieve some stress and prevent it from becoming overwhelming. 
-   When you know how much you will need to pay for your holiday, including spending money, set up a sinking fund.
-   Don’t travel during peak seasons or school holidays if you can. This will make the holiday cost cheaper, giving you more money to spend and enjoy while you’re there.

Everyone needs a break from the day-to-day, and holidays are a great way to experience new things and make lifelong memories. With a well-thought-out budget and a savings account, you’ll be heading on your holiday before you know it. By making saving a habit, you can continue to save long after your holiday is over. If the holiday blues set in, you can begin to save for the next holiday with HyperJar.

Colby Brin

Head of Copy

Colby Brin is Head of Copy at HyperJar. With over 17 years of professional writing experience, Colby’s been a journalist, ghostwriter, language consultant, and writing trainer. Having previously served as Head of Copy at Wise, he’s worked in fintech for over six years. A native of New York City, Colby graduated from the University of Michigan, and has lived in London for two years.

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