Budget for the Fun Stuff: Your Questions Answered!
As some of you know, The Family Piggy Bank is a great place to discuss personal finance issues with other like-minded moms.
This month, your questions about having fun with your family while sticking to a budget have been answered! Read on to see the answers below!
dusky_rose asked: We want to go camping this summer. We bought a tent trailer and are getting camping gear together to stock it with. How much money should we put aside for each camping trip?
Chase Blueprint answered: Thank you for your question, dusky_rose! There's no specific amount that you should set aside. It's whatever you are able to save. The first thing you should do is make a budget. Think about what you'll need on each camping trip - supplies and food - and if there is a cost to camp at each location you'll be traveling to. Also, important: think about the gas you'll need to drive there. Once you have an idea of how much you'll need to spend, assess the amount you can set aside to save for your camping trips. Then do it consistently, whether it's a dollar a day or $100 a week.
MamaMandee asked: What are some good ways to reduce spending during a vacation?
Chase Blueprint answered: Great question, MamaMandee. There are a lot of ways to save money or reduce spending during vacations. If you're flying, have a friend or neighbor to take you to the airport so you won't have to pay for parking while you're gone. You can also try replacing sodas and drinks for water at some meals. You may be surprised how much money you can save when a family of five isn't spending money for drinks at every meal. Also, think about splitting entrées or ordering appetizers for a meal - it can be good for your wallet and your waistline.
You can also look for ways to save and manage your spending with financial tracking tools such as Chase Blueprint. If you're a Chase Slate®, Freedom® or Sapphire® customer, set up a free Chase Blueprint plan to save money on everyday purchases like gasoline and groceries. These can be big vacation expenses! With Blueprint, you can avoid interest on everyday purchases when you pay them in full each month - even when you carry a balance. Just pick the categories you want to pay in full each month and Blueprint does the work for you by separating out those purchases on your statement. Then make your Blueprint payment and pay no interest on those purchases. Watch the savings add up this summer!
Wish2Be asked: It seems as though everytime I put money in my savings account ...within a week or two I need to take it back out for something. Is there a better way to save that I am just not aware of?
Chase Blueprint answered: Hang in there, Wish2Be. You've got the right idea. Start with a common equation: what you earn, minus what you spend, equals what you can save. You have to think about what you need versus what you want, and how you are going to pay for these things as they come up. Needs are what your most basic life costs - expenses that you have to pay every month like rent, utilities, even student loan payments. Put those in the necessary expenses category and then you can save what you have left over, whether it's $2 or $20. After you save, carefully consider the things you want to purchase. To help with this, ask yourself, "Is this purchase going to get me closer to or further away from my savings goal?" If you work inside those parameters, you'll be on the right track for building your savings account - and keeping it in there.
Mrs.Pool2Be asked: What's the best way to put back money for a family vacation that is only 2 months away??
Chase Blueprint answered: It's great to see you back again, Mrs.Pool2Be. The best way to save money for vacation in two months? Just get started. You don't have a lot of time, so save what you can in the time that you have.
You should also make sure that you set a budget for your trip in advance. Start by estimating the cost of all aspects of the trip - travel and lodging costs, food, museum tickets and souvenirs. Having savings is an ideal way to prepare, but if it's unfeasible for you and your family to cover all the expenses at once, financing a portion of these trips may come into play. If you choose to finance any portion of the vacation with a credit card, be proactive about setting up a plan to pay balances back. In just five minutes, you can set up a Chase Blueprint that lets you choose a payoff date for your balance or a portion of your balance. Then, you can track your progress as you pay it down faster and save on interest. Remember, fun doesn't have to cost a lot.
Leelee1008 asked: We would love to be able to take our kids and do something really fun this year. We are a low income family with not much wiggle room. We are thinking of taking our kids to an amusement park, like six flags. what is the best way to save for that outing and have fun without totally blowing our weekly budget?
Chase Blueprint answered: Leelee1008, that sounds like a great family outing. Just as we've told others, fun doesn't have to cost a lot. The first thing you should do is create a budget. Do some research: how much do tickets cost? Will you eat at the amusement park or will you pack your own lunches? If the park allows it, bring lunches and snacks so you don't blow your budget keeping tummies full. Also, another important item to think about if you're driving is how much gas it will take to get there and back. Look for coupons or deals around town and on the internet - sometimes they run promotions on ticket prices or food. Whatever you do, plan ahead. With a plan, you're more likely to be aware of your budget so you don't overspend.
Reina13: We budget throughout the year for vacations, but after hearing about a friend who had an expensive 'vacation emergency', my question is, do we include money for 'vacation emergencies' into our general vacation fund or should that be something that is pulled from our general savings account. Also, what would be a reasonable amount to budget for 'vacation emergencies'.
Chase Blueprint answered: Having money for emergencies is always a good thing, that's why saving is important. The fact is there is no perfect way to build savings - for emergencies or not. First, you should put the money where you feel the most comfortable. Then you can set up automatic payments to yourself into that savings account. Like automatic payments set on a credit card or automatic investments into your 401K plan, once you commit to an amount and set the wheels in motion, progress automatically happens.
A credit card can also be a useful tool in an emergency situation in those cases when the amount you've saved isn't enough. If you use your card for an emergency, make sure you think about a plan to pay it back. Your plan should be simple - a defined payment amount each month and the knowledge of when it will be paid off. Make sure this simple plan works with your budget and stick to it! In the research we have done with Blueprint, Chase credit card customers who make a plan for paying down their balances pay it down two times faster than customers who haven't activated a Blueprint plan. By being proactive and aware, you can save money for your vacation and any emergency that you hopefully won't face!
Itsblissmas asked: When planning for vacations do you suggest settting aside a certain amount or do you suggest figuring out WHERE the vacation will be and budget accordingly?
Chase Blueprint answered: Itsblissmas, the answer to your question really depends on what's best for you and your family. If you know your family wants to go on an annual vacation, you may consider saving year-round for your trip. If that's the case and you can pay for your vacation with savings, then you can pick a place and then think about how much you want to spend. However, if you haven't been saving year-round or don't know exactly how much you have to spend on vacation, figuring out your budget first would be wise.
First, figure out your budget by using this common equation: what you earn, minus what you spend, equals what you save. After taking a close look at these three numbers, set a budget based on what you can save. Then, evaluate what type of summer travel is right for you and your budget. Be sure to select activities that fall within your budget and don't forget to calculate their full costs (include any taxes, tips, insurance, etc.). Consider using Chase Blueprint, available for free on Chase Freedom®, Sapphire® and Slate® credit cards, to create a custom plan that can help you manage your spending and borrowing before, during and after vacation.
jurnee14 asked: I have not been on vacation in years, and am finally getting one this summer. We will be driving from Fl to Ny and staying with family along the way, so no hotel. We will mostly be visiting with family, how do I actually budget a vacation into my budget? Its pretty tight right now, but I know theres some wiggle room there.
Chase Blueprint answered: Jurnee14, start by figuring out your everyday budget by using this common equation: what you earn, minus what you spend, equals what you can save. After all the bills are paid think about how much you have in your savings. Is it enough for a vacation? Are there other purchases you need to be saving for, like back-to-school or an emergency fund? If you're not sure if you have enough saved up right now, estimate the total cost of your vacation. Think about all the individual costs, like gas, meals, snacks, souvenirs and tolls along the way. Then, compare the estimated cost of your trip against the number you calculated that shows what you can save (from the three numbers in the equation we started with). If you don't have enough for your vacation, calculate how much you can save each week or each month to be able to cover vacation expenses.
If financing a portion of your trip comes into play, be proactive about setting up a specific plan to pay it back. On select Chase credit cards, we offer Blueprint, a free set of features that helps our customers develop a plan to manage their spending and borrowing. You choose either how many monthly payments you'd like to make or how much you'd like to pay each month. Then, Blueprint establishes your customized plan. You pay your Blueprint payment to see progress month after month until it's gone!
gacgbaker asked: What is the best way to reduce your grocery shopping budget?
Chase Blueprint answered: A great way to save money at the grocery store is to go in with a plan: make a list and stick to it. Pick up only what you need and don't be tempted to buy those special offers if they aren't on your list. With a plan in place before you hit the grocery store, you'll save time and money, and avoid the temptation to buy items not on your list.
If you use a credit card to pay for your purchases, make sure you don't carry groceries or other everyday purchases in your credit card balance by paying them in full at the end of the month. With Chase Blueprint, available free on select Chase credit cards, you can avoid paying interest on everyday items like groceries and gasoline, even when you carry a balance. Just pick the categories you want to pay in full each month and Blueprint does the work for you by separating out those purchases on your monthly statement. Then, all you have to do is pay your Blueprint payment and you'll pay no interest on those purchases. With Blueprint, you can see the savings add up each month!
bamababe1975 asked: We'd love to go to the movies more than once a year, but what's the best way to budget in for that?
Chase Blueprint answered: Bamababe1975, you can start by developing a simple budget if you don't already have one. It's important no matter how much money you make or how much money you owe. To develop a budget that works, start with a common equation: what you earn, minus what you spend, equals what you save. In broad strokes, budgeting is basically this equation - it's about figuring out these different portions of your money flow. You have to think about what you need versus what you want, and how you are going to pay for these things as they come up. One way to look at this is to consider the most difficult things to cut back on if you had to. Put those in the necessary expenses category and then consider non-essential expenses, like going to the movies. Figure out how much each trip to the movies will cost - how many tickets do you need? Will you get any popcorn, candy or drinks? And here's another tip - look at going to a matinee show because they're often less expensive than an evening movie.
JOB!!!
- CafeMom Team
on Jun. 22, 2012 at 5:19 PM