Millennials may be willing to go into debt to travel, and they may not regret it when they do, but that doesn't mean it's the preferred way to see the world.
New research from CIT Bank shows that more and more Americans are saving up for their vacations and making vacation saving a top priority. In 2018, seven percent of Americans said it was a priority, and this year, 18 percent indicated they were saving for a vacation. Still, more than one in three consumers still don't save anything for vacation.
"Consumers are taking charge of their finances to make vacations more of a savings priority," said Ravi Kumar, head of Internet Banking for CIT Bank. "We're encouraged by the results of our survey as planning ahead is one of the key habits necessary to improve financial stability and prevent going into debt."
The 2019 Summer Savings Survey conducted by The Harris Poll also found that, when it comes to spending on vacation, Gen-Z outpaces other generations across a number of spending categories, in particular, unique food experiences and luxury hotels.
More than 40 percent of Gen-Z travelers like to spend money on unique food and drink experiences, which is more than millennials (34 percent), Gen-X (35 percent) and Boomers (26 percent).
Gen-Z is also more prone to book luxury accommodations, with more than one-third spending on splashy stays. That is compared to a quarter of millennials and Gen-Xers and even fewer boomers. Gen Z also outspends their counterparts on health and relaxation and first or business class transportation accommodations.
Savings for Summer
There is a lot travelers can do to ready themselves for the summer travel spending spree. CIT Bank offers a Savings Builder that rewards those who save consistently and provides a higher interest rate for those who make a deposit of at least $100 on a monthly basis.
"Consider stashing away $100 each month to save for vacations ahead of time," said Kumar. "Doing so can eliminate the financial stress and burden of increased expenditures during the summer when vacation season is at its peak."
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