Answer: 74%, with an average balance of $1,108

Questions:

• Do you think going into debt to pay for a vacation is a good idea? Explain your reasoning.
• Why do you think that so many people do it (borrow money to go on a vacation)?
• What advice would you give to a friend or colleague who’s looking to budget for a vacation but wants to avoid going into debt over it?

Behind the Numbers (from MarketWatch): 

• "Americans spent an average of almost $2,000 on their 2017 summer vacations, according to Allianz Travel Insurance"
•  "[I]f the trend the insurer’s Vacation Confidence Index has seen over the past three years continues, you can expect to spend an average of approximately $2,200 in 2018"
• "Putting your trip costs on a credit card or taking out a personal loan might sound like an easy way to get what you want. But if you’re not careful, you could be paying off that debt years from now"

Click here for the ready-to-go slides for this Question of the Day that you can use in your classroom.

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While on the subject of vacations, check out this NGPF Activity: Plan that Summer Vacation

About the Authors

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.