Summer is the season of longer days, concerts, sand in your shoes and spontaneous ice cream stops. It’s also a season of spending more money than usual, especially on vacations.

According to a study by The Harris Poll on behalf of NerdWallet, 87% of Americans plan to travel at least once this summer. Here’s the kicker: 85% of these vacationers will use their credit card to pay for it.

In this episode of Headlines and Fine Print, PACU President & CEO Dion Williams dives into the actual costs of summer travel from booking airfare and travel insurance, to smart financial tips that will help you avoid a financial headache once the leaves start falling.

Airfare: What You See Isn’t Always What You Pay

Generally, booking flights weeks or even months in advance brings lower prices.  However, being flexible enough to book at short notice may score you last-minute deals.

“If your trip includes airfare, we could say the airfare is the headline while the fees are the fine print,” Dion says. “Look beyond just the airfare. Be sure to add up the baggage and seat selection costs, for example, in addition to the airfare itself, to make sure you compare apples to apples.”

Here’s a tip for saving a few extra bucks on flights: don’t pay extra for seat selection. If you’re looking to save a few bucks, let the airline choose or wait until you check in to avoid charges.

Another tip: keep an eye out for bundles! Check multiple booking sites to see if you can combine your flight, hotel and rental car to score a better deal.

Travel Insurance: Is It Worth It? Maybe. You Should Read the Fine Print? Absolutely.

While “travel insurance” may sound appealing as a headline, its fine print can be complicated. Always know precisely what you are getting and check the fine print for what the insurance covers:

• What’s excluded?
• Are natural disasters and pandemics covered?
• What about pre-existing medical conditions?
• Is the specific location subject to a travel advisory?

Make sure to review the exclusions carefully before agreeing to purchase travel insurance.

Dion emphasizes, “Understanding what is involved in filing a claim is also a good idea. I’m not suggesting travel insurance is either good or bad. Assess the cost, coverage and exclusions about your situation to decide if it’s worthwhile.”

Financing Your Summer Fun Without Regret Later

The best time to start saving for a trip is today. Setting aside a small percentage of each payment is the easiest way to save for next year’s dream destination. Even if you don’t save 100% of what you need, every penny you save is a penny you don’t have to borrow or finance.

But what about this year’s vacation?

Let’s go back to the 85% of vacationers who use credit cards to finance their trips. Credit cards offer advantages, but their minimum payment structures can extend relatively small purchases over many years. However, there may be “buy now, pay later” options with shorter repayment periods, often 12 months or less.

“Whichever path you choose, make sure the repayment structure allows you to afford the monthly payment and that you are not saddled with this year’s vacation expenses for years to come,” Dion says.

Your Vacation Doesn’t Have to Break the Bank

A dream vacation can be worth every penny, but not every getaway needs to be a “big-ticket” that requires payment plans or using most of your credit to create great memories.

It may sound cliché, but the journey and the people you create memories with overshadow the destination in the long term.

Maybe destination vacations aren’t for you; there are many options for budget-friendly vacations, such as traveling during the off-season, which offers the advantage of fewer crowds and lower prices.

Road trips are also a relatively inexpensive way to spend quality time with loved ones. If you’re a North Carolina native, you can take a day trip to the mountains or the beach. But, many local parks, trails and even “staycations” don’t require long drives or breaking the bank.

Whether a vacation half across the world or a road trip to an Airbnb in the mountains, you may still want to save up for it to have a little extra cash. If you don’t want to max out your credit card but don’t know where to start looking for other options? Our PACU’s Vacation Club accounts can help you stay one step ahead.

If this topic piqued your interest and you want to hear more travel and savings tips, catch the full Headlines and Fine Print episode on our Spotify and YouTube.