Start With the Real Cost of the Trip

Before you set a savings target, it helps to know what you are actually saving for. Most families underestimate a holiday because they only count the headline price of flights or a package. The extras are what tend to blow the budget.

Write down everything the trip will involve:

• Travel to and from the airport or ferry port, including parking or a night in a hotel before an early flight
• Accommodation, plus any resort fees, cleaning charges or deposits
• Food, both eating out and self-catering groceries
• Spending money for days out, ice creams, souvenirs and tips
• Travel insurance, passports, visas and any vaccinations
• Pet care or house-sitting costs while you are away

Add it all up, then add a buffer of around 10 per cent. That figure is your goal. Seeing the true number on paper is far less frightening than discovering it on a card statement six weeks after you get home.

Turn the Total Into a Monthly Target

Once you have the total, divide it by the number of months until you go. A £2,400 holiday in twelve months' time is £200 a month, or roughly £46 a week. Breaking it down this way makes the goal feel manageable rather than overwhelming.

If the monthly figure is more than your budget can comfortably absorb, you have three options: give yourself longer, reduce the cost of the trip, or find extra income. What you should not do is assume you will "find the money" nearer the time. That is how families end up reaching for credit.

Time your saving to your payday. A standing order that leaves your account the day after you are paid is far more likely to survive the month than one that comes out just before.

Give the Holiday Money Its Own Home

Money that sits in your current account tends to get spent. Open a separate easy-access savings account and name it something specific, such as "Cornwall 2026" or "Summer Holiday". A named pot is harder to raid for a supermarket shop.

• Automate a transfer on payday so you never have to remember it
• Keep the account separate from your everyday banking
• Top it up whenever something unexpected comes in, such as a tax refund or a birthday gift
• Check the interest rate, but do not chase a fraction of a per cent at the cost of easy access — you need this money within the year

If you are saving a large amount, some families split it between a regular saver and an easy-access account. Just make sure the money is available when the balance is due.

Book Early and Pay in Stages

Booking early usually does two things: it locks in a lower price and it gives you more time to pay. Many operators and travel providers offer low deposits, with the balance due a few weeks before departure. That spreads the cost across the year rather than concentrating it into one painful month.

Check the terms carefully. Ask whether the deposit is refundable, what happens if you cancel, and whether your money is financially protected. Paying in instalments only helps if you are not losing flexibility you might need.

Buy travel insurance as soon as you book, not the week before you travel. It is usually inexpensive and covers you if illness or another emergency forces you to cancel.

Choose a Destination That Fits Your Budget

The single biggest lever on holiday cost is when and where you go. August in a popular resort will always cost more than the same trip in late June or early September. If your children are at school, check term dates carefully and look at the first or last week of a holiday, which are often cheaper than the middle.

• Consider a UK break in a cottage or caravan, which can cost a fraction of a foreign package once flights and transfers are counted
• Self-catering often works out cheaper for a family than a hotel, especially for breakfast and lunch
• Shoulder season offers decent weather with lower prices and smaller crowds
• Look at destinations where the pound stretches further, and factor in the cost of getting there

A slightly less glamorous trip that you can pay for outright beats a dream holiday that follows you home as debt.

Trim Everyday Costs and Protect the Pot

Most families cannot magic up an extra £200 a month without making room for it. That means looking at regular outgoings with fresh eyes. Subscriptions you have forgotten about, a mobile contract that is out of date, or a weekly takeaway habit can each free up a surprising amount over a year.

Plan meals around what is already in the cupboard, set a weekly spending limit, and review the holiday pot once a month. Watching the balance climb is genuinely motivating, and it keeps the goal in view when you are tempted to spend elsewhere.

Finally, protect what you have saved. Do not use the holiday account as a slush fund, and if you do use a credit card for a deposit, clear the balance in full rather than carrying it. The aim is to come home relaxed, with nothing left to pay off.