Americans aren't letting costs hold them back from a summer vacation with 78% planning to take a trip. However, they aren't planning to go very far from home, according to a new survey.
Americans aren’t letting costs hold them back from a summer vacation with 78% planning to take a trip despite the hefty price tag, according to a TD Ameritrade survey.
Roughly a quarter (26%) of Americans will spend more money on this summer vacation than in the last five years; however they don’t plan to stray too far from home.
"While uncertainty remains, there have been good indicators that the economy is getting stronger and Americans are starting to feel more optimistic," Carrie Braxdale, managing director, investor services TD Ameritrade, Inc., said in a statement. “That optimism can help fuel spending, so it's not surprising to see that so many people plan to travel this summer.”
According to the survey respondents, only 29% will leave North America. Nearly half (48%) will travel more than 400 miles while staying in the U.S., 25% will travel less than 400 miles and stay in the U.S. and 4% will enjoy a staycation at home. Just 11% said they will be visiting Canada or Mexico.
Such a large purchase as a vacation requires planning. However, if Americans start planning early and stick to the planned vacation budget without overspending and putting it all on their credit cards, then they won’t cripple other savings accounts (like retirement funds) or put themselves deep in debt, Braxdale said.
"Everyone deserves a vacation, and with careful planning it can be affordable,” she said. “Be sure to assess how a vacation fits into your long-term savings goals and make sure you don't overspend and accrue unwanted debt."