Anchor: Welcome back to KCC. Now it’s 6:24. We’re here with Kurt Pearson from Compass Financial and we’re talking about planning for a summer vacation.
Anchor: Yeah, it’s a big investment really. We know that 8 out of 10 Americans are planning some form of vacation this summer. 42% of the people who were polled said that they were planning on spending up to $1500 on their trip. 10% said they’re going to spend more than $3000. That’s a big investment Kurt, so how can families get the most out of their family vacations?
Kurt Pearson: Well two points here. First it’s very good to explore the expectations heading into it, and do a little bit of planning and at least communicating in the family before you even head out. And second, take a look at your past. “What did we do last year for our family vacation? What system did we use for our money? And how did we try to stay on budget to live within our means while we’re on vacation?” So those two things are very important for people as they think about their vacation.
Anchor: And learn from it.
Kurt Pearson: Yes.
Anchor: Are there any places that people tend to make mistakes usually, maybe that they overspend and then they regret it later on?
Kurt Pearson: Yes, part of vacation is that we like to have spontaneity, so we don’t want to rob ourselves of that when we’re on vacation, but sometimes spontaneous decisions have an impact on the budget. And so coming up with kind of a system for people that can reduce those decisions that are motivated by some guilt or some fear. “Oh my gosh we have to get these memories in before these vacation ends.” Sometimes those types of motivations can put you over the top in terms of the budget.
Anchor: So for folks who are leaving today for a few days away, any last minute advice them as they head out?
Kurt Pearson: Yes, so if you have your car packed and you’re ready to head out, take a look at that cash that you have available and maybe even use a prepaid visa card or the old envelope system where you’re paying your fixed expenses on vacation through your credit card and have all that cinched up, but for the spontaneous types of things you have an envelope and when that cash is winding down you at least know how much you have spent. And then you can make an intelligent, logical decision on where to go from there.
Anchor: Budget in an envelope. Thank you so much for coming in, Kurt, great tips as always. If you have any questions for Kurt about your money give him a call at Compass Financial at 327-1020.