Holiday travel budget for families: how to plan the trip home without overspending

The short answer: a holiday travel budget makes travel its own line, separate from gifts. Total every cost of the trip, add a buffer and divide by the months left so you can save it ahead.

• Sample road trip ($500): gas and tolls $150, food on the road $80, host groceries $60, host gift $25, pet sitter $120
• Compare driving vs. flying for your family
• Gifts: decide how they'll travel
• Before you go: prepare the car for winter and take care of home
• Next step: Plan it with the Sinking Funds Tracker ($4.99).

Going home for the holidays, or bringing the family to see relatives, is often the heart of the season. It can also be the part of the holiday budget that catches families off guard. Gifts get planned for months. Travel costs tend to show up one receipt at a time.

To save for the trip ahead of time, our Sinking Funds Tracker works out how much to set aside each month to reach each goal by its date.

This guide is about planning your holiday travel the same way you'd plan your gift list: with a total, a list and a little room for surprises. Every dollar figure here is an example to show the math, because fares, gas and lodging change constantly.

Step 1: list every cost of the trip

The most common travel-budget mistake is counting only the ticket or the gas. Write down every cost, even the small ones.

Planning a getaway? Build a vacation budget before you book.

Getting there

• Airfare, train or bus tickets for each person
• Checked bag or seat selection fees, if your fare charges them
• Gas, tolls and parking if you're driving
• Airport parking, rideshares or shuttles (plus Global Entry or PreCheck fees if you fly often)
• A rental car at your destination, if you need one

Staying there

• Hotel or short-term rental, if you're not staying with family
• A contribution toward groceries or a meal if you are staying with family
• A host gift

While you're away from home

• Pet boarding or a pet sitter
• Someone to check on your house or collect mail
• Meals and snacks on the road or at the airport
• Activities and outings at your destination

The holiday extras

• Gifts for the people you're visiting
• Shipping gifts ahead, if that's cheaper or easier than packing them
• Extra luggage space for gifts coming home

Once you see everything on paper, the total often looks different than you expected. That's the point. It's much better to know now than in January.

Step 2: set your travel budget

Travel should be its own line in your holiday budget, separate from gifts. If you haven't set an overall holiday number yet, start with our holiday budget guide or the Holiday Budget Calculator.

This is also how to prepare a travel budget for any trip: total every cost from Step 1, add a buffer, then divide by the months left so you can save it ahead.

Example travel budget

Here's an example for a family of four driving to see relatives:

These numbers are made up to show how the categories fit together. Your real figures will depend on distance, family size and where you live.

Keep a buffer

Winter travel comes with surprises: a delayed flight that means an airport dinner, a hotel night because of weather, a car repair. Build a buffer into your travel budget so one surprise doesn't land on a credit card.

Step 3: compare driving vs. flying for your family

There's no universal answer to whether driving or flying is cheaper. It depends on distance, the number of travelers and current prices. Use a side-by-side comparison with your real numbers.

Don't forget to weigh things that aren't on a receipt, like the time each option takes, how your kids handle long car rides and how much you can bring home.

Step 4: plan food for the trip

Food is one of the easiest travel costs to trim, because it's the one you control most.

• Pack a cooler or snack bag for road trips.
• If you're flying, pack mostly dry snacks, like crackers, pretzels and granola bars, which are simpler to bring through security than drinks and spreads.
• Plan one sit-down meal as a treat and keep the rest simple.
• If you're staying with family, offer to cover one dinner or a grocery run. It's a thoughtful way to say thank you.

If you're flying, check the TSA's What Can I Bring? tool before you pack snacks. The TSA's travel tips explain that liquids, aerosols and gels in carry-on bags must be 3.4 ounces (100 mL) or less, and that foods like sauces, jams and preserves count as liquids or gels. For the rest of the suitcase, our packing checklist includes a section for kids.

Step 5: decide how gifts will travel

Gifts can make holiday travel expensive and complicated. Decide early whether you'll pack them, ship them or have them delivered.

If you're flying with gifts

The TSA's holiday travel tips encourage travelers to use gift bags or gift boxes with removable lids, so officers can inspect them if needed without opening fully wrapped presents. The TSA also notes that snow globes belong in checked bags. Wrapping gifts after you arrive can save headaches at the checkpoint. Pack tape and a few sheets of paper, and follow our guide on how to wrap a present once you're there.

If you're shipping gifts

Shipping can be cheaper than checking an extra bag, or it can cost more, so compare both before deciding. If you ship, check the USPS holiday shipping dates so gifts arrive in time.

If you're ordering online

Having gifts delivered straight to your destination can save luggage space. Ask your host first, and keep track of what's been ordered. The Christmas Budget & Gift Planner includes an online order tracker so packages don't get lost in the shuffle.

Consider a smaller gift exchange

If the trip itself is a big expense, it's okay to suggest a family gift exchange or a no-gift year. Our guides to Secret Santa rules and budgets and how to tell family no gifts can help.

Step 6: traveling with kids

At the airport

The TSA's page on traveling with children explains a few things that can save stress:

• Formula, breast milk, toddler drinks and baby food (including puree pouches) are allowed in carry-ons in quantities over 3.4 ounces. Tell the officer at the start of screening.
• Children 12 and under can generally leave their shoes, light jackets and headwear on during screening.
• Strollers, car seats and baby carriers must be screened.

In the car

If your little ones ride in car seats, the American Academy of Pediatrics explains in its car safety seat guide that bulky winter coats and snowsuits can compress in a crash and leave harness straps too loose. The AAP suggests dressing children in thinner layers and putting a coat or blanket over them after they're buckled in. Traveling with an infant for the first time? Our guide to a low-cost first Christmas with a baby covers routines and safe gifts.

Keep kids busy for less

• Pack a bag of activities from home, like coloring books and small toys, and pull them out one at a time. Print a few unicorn coloring sheets before you go.
• Download shows, audiobooks or games before you leave so you're not relying on Wi-Fi.
• Bring a few new-to-them items from the library or a toy swap.

Step 7: prepare your car for winter travel

If you're driving, a little preparation can save money and keep everyone safer.

Ready.gov recommends keeping an emergency supply kit in your car with items such as jumper cables, flares or a reflective triangle, an ice scraper, a car phone charger, a blanket, a map, and cat litter or sand for traction. It also suggests having a mechanic check things like antifreeze levels and your battery before an emergency.

For more on winter conditions, Ready.gov's winter weather page notes that winter storms create a higher risk of car accidents and can last a few hours or several days. Check the forecast before you leave and stay flexible.

If you keep a vehicle maintenance log, it's a good time to check when your last service was.

Step 8: take care of home before you go

Before you leave, fill in our free travel itinerary template with flights, lodging and an emergency contact, and leave a copy with someone at home.

Planning a bigger trip later in the year? Our guide on how to plan a vacation walks through 12 steps, from the budget to the final check.

• Arrange pet care early, in case holiday openings fill up.
• Ask a neighbor to bring in packages and mail.
• Unplug decorations and lights before you leave.
• Leave a list of contacts and pet instructions for whoever is checking on your house. The Household Binder keeps that information in one place.

How to pay for holiday travel without debt

Start a travel sinking fund

If you travel for the holidays most years, a sinking fund turns a big December expense into small monthly amounts. Our guides to sinking funds and saving money for Christmas explain how, and the Sinking Funds Tracker Spreadsheet tracks your progress.

Example: If your trip usually costs about $600 and you start saving in January, setting aside $50 a month gets you there by December.

Be careful with "pay later" travel

Some travel sites offer to split your purchase into payments. The CFPB explains how buy now, pay later loans work and what to check before you use one.

If you have to cut costs

• Travel on a different day, if your schedule allows, and compare prices.
• Shorten the trip by a night.
• Stay with family and contribute groceries instead of booking a hotel.
• Celebrate on a different weekend when travel may be less hectic.
• Host a video call for relatives you can't visit this year.

Your next step

Grab a sheet of paper and list every cost of your trip, from the gas tank to the pet sitter. Then add it as its own line in your holiday budget using the Free Holiday Budget Kit. Knowing your real travel number now means you can enjoy the trip without the worry.

See also: Christmas budget by income, host Christmas dinner on a budget and holiday freezer meal prep plan. For trips the rest of the year, see our budget travel tips.

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