Three California Cities Have the Biggest Vacation Budgets
With last year’s vacation spending increasing 8.3% despite the COVID-19 pandemic, personal finance website WalletHub today released its 2021 Vacation Budgets by City report, along with videos and expert comments. He also released his free tool that calculates personalized vacation budgets for all WalletHub members by December 25.
To help consumers avoid post-vacation regrets, WalletHub used several key metrics, such as income, age, and monthly savings-to-spend ratio, to estimate maximum consumer spending in each of the 570 U.S. cities.
Here are some highlights from the report:
Cities with the biggest vacation budgets
1. Flower Mound, TX ($ 3,427)
2. Sunnyvale, California ($ 3,085)
3. The Woodlands, Texas ($ 3,073)
4. Sugar Land, Texas ($ 3,029)
5. Mountain View, CA ($ 2,959)
6. Ellicott City, MD ($ 2,950)
7. Naperville, Illinois ($ 2,941)
8. Bellevue, WA ($ 2,927)
9. Carmel, IN ($ 2,806)
10. League City, Texas ($ 2,778)
11. Milpitas, California ($ 2,710)
12. Allen, Texas ($ 2,688)
13. Pearland, Texas ($ 2,669)
14. Maple Grove, MN ($ 2,577)
15. Cary, North Carolina ($ 2,541)
16. Troy, MI ($ 2,524)
17. Plymouth, MN ($ 2,499)
18. Arlington, Virginia ($ 2,434)
19. Newton, MA ($ 2,399)
20. Columbia, MD ($ 2,379)
More from WalletHub
What tips do you have to help people avoid overspending while on vacation?
“To avoid overspending, it may be easier to use an engagement device. I would recommend either putting your allotted budget on a prepaid VISA or keeping it in cash (separate from any other money you might be carrying). This way your vacation spending account is very salient and separate from your other funds. When you’re short, if you’re trying to overspend, you need to consciously recognize that you’ve run out of budget, which should add enough friction to the decision to stop some people from violating their goal.
– Jared Watson – Assistant Professor, New York University
“Budget for how much you’re willing to spend on vacation-related purchases. This should include all gifts, as well as the cost of shipping, decorating, and meals. Also, set aside 15% of this budget to cover incidentals or clothing and stick to that amount. If you’ve had a drop in income you may need to be on a smaller vacation budget than usual and that’s okay. Avoid making vacation purchases with credit cards. Instead, withdraw or set aside your budget on available funds so that you don’t be tempted to overspend.
– Kate Andrews – Faculty Member, Doctor of Business Administration Program, Walden University
How do you think the current social and economic environment influences household vacation spending decisions?
“The past 20 months have seen a proliferation of online shopping due to the pandemic. It probably would have taken a decade to reach the spending levels we see today without the pandemic. This means we have more options and more information to shape our decisions than in traditional buying situations, which means marketers have more diverse tools to influence consumers. Our current social environment has led to a certain level of monotony and routine these days, so we can expect some desire from consumers to use the occasions to give gifts as an opportunity to do something “special.” »With more original or fanciful gifts. At the same time, our economic environment has led some Americans to be more frugal, creating a compensatory force to wow someone with their freebies. I have a feeling that we will see more unique or new gift segments flourish (for example, handmade products), but not necessarily more expensive.
– Jared Watson – Assistant Professor of Marketing, New York University
“The holiday season is meant to be a season of giving. Supply chain disruptions have resulted in shortages and price increases across the board and most people feel like they are in survival mode and have to think to themselves. It’s not so bad! Our commercial supply chain exceeds $ 2T and COVID has taken its breath away for over 12 months. This large supply chain with many players will take some time to set up. Yes, we live in the age of instant gratification, but no, the supply chain doesn’t heal itself overnight. Just like a patient, give them time to heal and try not to overload them so that recovery takes longer. This holiday season, let’s try to find that common thread that will bring us together as a country – the thread of caring for our neighbors and the thread of giving, and the thread of “us”.
– Hitendra Chaturvedi – Professor, Arizona State University
How can people show their love and appreciation during the holidays without spending money on gifts?
“The key is to focus on creating experiences that allow family and friends to relax and enjoy the company of others without the burden and stressors of consumerism. Depending on weather constraints, this may include arranging or hosting low cost fun experiences such as a picnic or indoor games in the afternoon / night. A quick online search will provide a wealth of ideas for different age groups and backgrounds. Instead of giving gifts, ask everyone to bring a food / drink, which could even be packaged in individual portions. Create a suitable music list, then sit back and enjoy the opportunity to create shared memories.
– Fiona Newton – Department of Marketing, Monash Business School, Monash University
“Love and appreciation can be best demonstrated by thoughtfulness. It can be done without spending money on gifts. In fact, it can be improved by not spending money. are sincere options. Consider giving a timeline for the coming month or year with notations of the services you can do for the recipient. Services can be large or small and provide individualized care. Time is an asset valuable and can be greatly appreciated.
– Barbara L. Stewart, Ed.D., CFCS – Professor, University of Houston
- Highlands Ranch, Colorado, has the lowest expense / income ratio, 59.47%, which is 1.7 times lower than Miami, Florida, the highest city with 99.55%.
- Sioux Falls, South Dakota has the highest monthly savings-to-spend ratio, 689.29%, which is 3.4 times higher than in Waterbury, Connecticut, the city with the lowest at 200, 44%.
To view the full report and rankings for your city, click here.