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Credit Counseling with
the Sudbury Community Service Centre
The Hidden Costs of Summer Vacation
Have you ever
experienced “holiday hangover?” It’s the sinking feeling you might
get a few weeks after your summer vacation if one of the things that
you have relaxed is your spending control. Unlike the effects of
other overindulgence, holiday hangover probably won’t affect you
“the morning after”. It tends to kick in with the arrival of the
first post-vacation credit card bill – usually about the same time
your tan starts to fade.
With careful planning, however, it is possible to avoid those
unpleasant post-holiday surprises. “The first map to pull out for
any holiday, is the financial plan”, says Linda Morel, Executive
Director of the Sudbury Community Service Centre. “The key to
determining what kind of a vacation you can afford means adding up
all the costs – and many are hidden”. You may have a rough idea of
the costs of this summer’s holiday, but you should also make sure to
consider some of these not-so-apparent expenses:
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When traveling by car,
don’t forget to include the costs of gasoline, meals and
accommodation en route. Remember that in some locations, you pay
more per liter for your gasoline when you buy it on credit. As well,
gasoline prices can fluctuate drastically from area to area. As for
those rest and refreshment stops, taking a cooler along with your
own snacks and drinks can help you minimize the cost along the way.
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Air travel includes not
only your fare, but also insurance, taxes, and transport to and from
the airport. One way to keep the down the cost of transportation
from your home is to ask a friend to drive you. You could pay
someone you trust as well. They will often be happy to earn extra
cash, and it will likely be much less than the cost of a limo or
taxi or leaving your car at a park and fly depot.
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Hotel rooms are subject
to considerable taxes, and often charge extra for parking. Make sure
you include the full cost of accommodation in your budget. Look at
the location of attractions you want to visit, relative to your
hotel. It may make sense to stay a little further away and pay less
for our accommodation. Also, don’t forget to ask about discount
rates to which you may be entitled.
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Do some research on the
cost of attractions you want to visit and budget accordingly. Find
out what free events will take place while you are in town. Tourist
boards for many cities will often provide coupons for specific
attractions which can provide savings. You should also include in
your budget a set amount for souvenirs and gifts.
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Remember the cost of
money, particularly if you are travelling outside of Canada.
Exchange rates are only one part of the equation. There can be costs
associated with purchasing travelers’ cheques and there are often
significant fees to cash the cheques if they are in a foreign
currency. As well, you should be aware of the costs of using ATMs
and Interac while abroad.
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Don’t neglect the cost
of maintaining your home while you are away. Calculate the cost of
boarding your pets and maintaining your garden, etc. into your
vacation budget. Remember too, your whole paycheck can’t be
dedicated to your holiday. Utility bills, mortgage or rent,
insurance and taxes are among the many expenses that don’t take a
break.
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You don’t always have to
travel a distance to have a great vacation. Your own city or region
may offer many no or low cost attractions within driving distance.
As well, involve the whole family in your plan. You may be surprised
to find out that the things your children really want to do aren’t
that expensive.
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One of the best ways to
have the vacation you really want without negative financial
after-effects is to plan all year long”, says Linda Morel. “Know
what you want to do, research what the real costs are and, if it
appears to be achievable, develop a savings plan to set aside enough
money to pay for the holiday when the time comes.”
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