Family: financial management and travel planning

At Milesopedia, we understand that family travel can be a rewarding and financially challenging experience.

Our purchasing power has diminished due to the current inflationary context we’ve been experiencing for several years. That’s why it’s essential to manage your spending effectively and consider reward points’ benefits, as they can be a tremendous economic boon.

We’ve put together our best family resources here to help you organize and manage your finances in the best possible way so you can continue planning memorable vacations.

Financial planning for families is essential to ensuring long-term financial stability and realizing your family’s dreams. It’s an ongoing process, so start today to achieve your financial goals as a family.

The first pillar of sound financial planning for families is the creation of a budget. A well-developed budget allows you to track your income and expenses, make informed financial decisions and work towards your goals.

If you’re struggling financially, now’s the time to take stock of your extra spending, renegotiate your contracts and set yourself some limits. This step is essential before embarking on any strategy to accumulate reward points. Here’s how to get started:

Drawing up a family budget

• Identify your income: Start by drawing up a list of all your family’s income, including salaries, allowances, investment income and so on.
• Categorize your expenses: Classify your expenses, such as housing, food, entertainment, bills and more.
• Set spending limits: Determine spending limits for each category based on your financial priorities.
• Track and adjust: Track your spending and adjust your budget over time to reflect changes in your financial situation.

Finally, when your next tax bill comes, put in place different strategies to reduce your taxes. It’s also an opportunity to earn points.

Think about using budget management tools and getting information from competent websites. Our partner, Educfinance, can help you achieve your financial goals.

Educfinance offers training cohorts several times a year and a free mobile app to keep your money under control.

Here are the different credit cards milesopedia recommends to families for cash back:

• Up to 5% with the BMO^® CashBack^® World Elite Mastercard^®*.
• Up to 4% with the CIBC Dividend^® Visa Infinite* Card
• 2% everywhere with the SimplyCash™ Preferred from American Express

Once you’ve established your family budget, consider building up family savings. This stage is crucial to meeting unforeseen expenses, investing in your children’s future and ensuring a comfortable retirement.

Not sure where to start? Don’t hesitate to ask for advice! He can analyze your situation with you and suggest appropriate solutions.

Saving for children’s education

• Plan Ahead: Start saving early for your children’s education. Education savings accounts and registered education savings plans (RESPs) are options to consider.
• Budget for school fees: Include tuition, books and supplies in your annual budget.

Family retirement savings

• Invest for the future: Set money aside regularly in retirement accounts such as RRSPs (Registered Retirement Savings Plans) to ensure a comfortable retirement.
• Consult an advisor: Talk to a financial advisor to develop the right retirement strategy for your family.

Debt management is an essential part of financial planning. Reducing high-interest debt can free up money for other financial goals. Take care of your credit score before analyzing your purchasing or leasing options.

Is your situation difficult? Don’t make it worse, and only spend what you can afford.

Pay all your credit card bills on time, every month. It’s essential for responsible financial management. Keep track of every expense, save a small amount daily to build up a savings fund to pay these costs, and schedule an alarm at the end of the month.

If you have a purchase to make now and don’t have the choice of using credit, some banks offer options such as the“buy now, pay later” plan.

Repayment of high-interest debt

• Prioritize debts: Focus on paying off high-interest debts like credit cards to save money in the long run.
• Debt consolidation: Explore debt consolidation options like personal loans with lower interest rates.

Financial protection for your family in the event of an emergency or death is a crucial but often overlooked aspect of financial planning. The right life insurance can ensure your loved ones’ financial security in the event of an unexpected tragedy. Here’s how to choose the right insurance for your needs:

Life insurance and family protection

• Choose the right insurance: Select life insurance that protects your family financially in the event of a tragedy. Evaluate your coverage needs by taking into account..:
  • outstanding loans, children’s tuition fees, future higher education expenses
  • possible loss of income in the event of an accident or other unforeseen event: consider the age of your children, your professional situation and that of your partner.
• Check the type of life insurance to be taken out: Select life insurance :
  • temporary: offers coverage for a specific period, such as 10, 20 or 30 years, but is more affordable;
  • permanent: can allow you to accumulate cash value.
• Choose your supplier carefully: Get different quotes to compare costs and benefits. read terms and conditions, and check exclusions.
• Clearly identify the beneficiaries: Whether it’s your partner, your children or anyone else, make sure they know about the insurance policy.

Taking out life insurance is an act of responsibility and foresight. This guarantees that your loved ones will be taken care of financially, even in your absence. By carefully assessing your needs and choosing the right policy, you can offer your family peace of mind and financial security for the future.

Drawing up a will

Quite often, families neglect this aspect, thinking that there’s no time or no need for it. However, drawing up a will ensures that your wishes pass on your assets in the event of your death. You control how and to whom you distribute your assets. Your rewards points have value, too, so check the terms and conditions of the programs.

A will also protect your family by clarifying your intentions and helping to prevent potential conflicts between heirs. Who hasn’t witnessed a difficult succession?

Your notary will be able to help you draw up your will so that you don’t forget any instructions, depending on your situation. If this will is dated and there have been major changes in your life (moving house, marriage, divorce, birth, acquisition of property, etc.), consider updating it.

Investing can help you grow your family savings and achieve your long-term financial goals.

Long-term investment planning

Investing can help increase your wealth over the long term, providing financial security for future expenses such as children’s education or retirement.

In times of inflation, investments can offer higher returns than inflation, preserving the purchasing power of your savings over time.

Develop a diversified investment strategy to minimize risk. Invest in different types of assets such as equities, bonds, real estate funds and commodities.

Consult an investment advisor for advice on managing your family portfolio if necessary. It can actively manage your portfolio, make adjustments and monitor performance on your behalf.

Financial education for children is fundamental to preparing them to manage money responsibly as adults. Here are some ways to deepen and enrich this learning process:

Early education

• Budget: Start by teaching the value of money early by giving your children a little pocket money every week. They will learn how to manage a limited budget. You can use concrete examples, such as buying candy or toys, to show how money is used and how to pay at the bakery or another merchant.
• Educational games: Use board games that involve money, such as Monopoly, to introduce financial concepts in a fun way. Your children will learn the first principles: how to give change, what money is for and how to earn it.
• Children’s Savings Accounts: Create a savings account for your children and encourage them to save. This will give them a sense of responsibility and involvement. Encourage children to regularly deposit money in their account, which they receive as pocket money or gifts, rather than spending it immediately. They’ll understand the value of savings that grow over time through interest, reinforcing the concept of compound interest.
• Prioritize spending: Help them plan larger purchases, save time and discuss the difference between needs and wants, helping them make informed decisions about their spending.

It can take time for a child to understand the value of money. The sooner you teach him, the sooner he’ll learn to manage his money responsibly. This means making mistakes and losses but knowing how to donate to charitable causes.

To prepare your finances for stress-free family travel, start by drawing up a budget. Make sure your budget is realistic and sustainable for your family.

Determine the total cost of the trip including :

• transportation: plane or train tickets, gasoline, etc;
• accommodation: rental, airbnb, hotel, all-inclusive, etc;
• food: restaurants and grocery stores when traveling;
• activities;
• insurance;
• and a margin for unforeseen events.

Then, start by putting money aside in a dedicated travel fund and consider ways to increase your savings by exploring different avenues: garage sales, multiple jobs, passive income, etc.

Before setting off on a family trip with your car, motorcycle or van:

• Plan your itinerary so that it’s child-friendly, with frequent stops and age-appropriate sites of interest.
• Check their comfort and make sure they have plenty of suitable and varied entertainment during the trip. This will make the journey more comfortable for them and for you.
• Estimate your fuel and tolls budget for the whole trip.

When it comes to gas, here’s a selection of the best credit cards milesopedia recommends for families:

• 4% cash back with the CIBC Dividend^® Visa Infinite* Card.
• 3% cash back with The BMO^® CashBack^® World Elite^®* Mastercard^®*.
• 2 Privilege points per dollar with the American Express^MD Gold Rewards Card

Searching for flights is essential to travel with your family without spending a fortune. Use online price comparison tools to find the best deals on airline tickets. Be flexible with your travel dates to take advantage of the best rates.

Choose the best time to book your tickets. Rates are often lower if you book in advance, but last-minute offers are also available. Research and compare prices at different times to find the best option.

Finally, here are our articles listing some tips and tricks for booking tickets for children:

Which card should I use to book flights?

Here are the different credit cards milesopedia recommends for families to save on airfare:

Travelling by train offers a unique experience and many advantages for families looking to combine comfort, convenience and adventure.

• Space: This is an excellent choice for those looking for space to move around or who feel uncomfortable in confined spaces such as on an airplane.
• Flexibility and accessibility: Wherever you are, train networks are generally well-developed, making it easy to get from one city to another with flexible timetables.
• Comfort: The seats offered are often spacious and comfortable. Depending on the type of trip, several classes are available for travellers’ comfort, as well as various facilities such as tables suitable for families of four or a bar area for refreshments.
• Discovering the countryside: Thanks to their large windows, trains also offer panoramic views of landscapes sometimes inaccessible by car.
• Less stress: Families who travel by train are less stressed by driving, and the train is one of the safest modes of transport compared with the car or plane.
• Affordable and environmentally friendly: Rail companies offer reduced fares for children or families, and it’s a more environmentally friendly mode of transport.

Why not try the train on your next trip?

Other modes of transport included:

• public transport (buses and coaches): useful for short journeys or city tours
• cruises.

Here are our articles on the subject:

Credit cards with no foreign conversion charges

Here are the different credit cards milesopedia recommends to families to pay no conversion fees for purchases made in foreign currencies (a 2.5% savings on each transaction)!

Which credit card should I use to pay for accommodation?

Here are the different credit cards milesopedia recommends to families for hotels:

• 5 points per dollar with the Marriott Bonvoy™ American Express^® Card for bookings at Marriott’s hotels, with a nice welcome bonus
• 5 points per dollar with the Marriott Bonvoy Business American Express^MD Card for bookings at Marriott’s hotels, with a nice welcome bonus

Vacation rentals and residences

Vacation rentals, such as houses or apartments, are an excellent option for families. They offer more privacy, a kitchen to prepare your meals and often more affordable rates than hotels. You’ll be more independent.

Here are the different credit cards milesopedia recommends for families to use points for Airbnb rentals (or other reservations on Expedia, Booking, Hotels.com, etc.):

All-inclusive hotels

Choosing an all-inclusive holiday offers a number of advantages, particularly attractive to families. The package can include activities, meals, visits and childcare services, for example. You know what’s in your package. Everything is available on site, and you don’t have to plan any cash outflows: the majority of costs are paid in advance, so you won’t be left with a hefty bill at the end of your trip.

Beware of exclusions, however, and make sure you choose packages that guarantee quality of service, whether for food, facilities or activities.

Other accommodations

Of course, campsites, caravan parks or stays in unusual accommodation are also worth considering, depending on the type of experience you’re looking for and the location. These accommodations can help you save money or enjoy new experiences. For example, on our trip to Hawaii, camping is an option to consider, given the price of hotels and their scarcity in certain areas.

When you’re traveling with your family, meal planning is crucial. It may be a good idea to opt for accommodation with a kitchen, so that you can prepare simple, economical meals.

When exploring local restaurants, opt for family-friendly establishments offering children’s menus or discounts for younger guests. When you arrive, buy enough healthy snacks and water from a supermarket for the days you’ll be visiting, to avoid expensive and often unhealthy impulse purchases during your visits.

Here are the different credit cards milesopedia recommends to families for groceries and restaurants . With these credit cards, you can earn up to 5 points per dollar or even up to 6 points per dollar on the TD First Class Travel^® Visa Infinite* Card:

Look for activities that will appeal to everyone, without draining your budget. Parks, beaches, nature walks and museums with reduced or free admission are excellent options. Some cities offer tourist passes with discounts for several attractions.

Financing leisure activities with low-cost credit cards

Here are the different credit cards milesopedia recommends for families to save on activities like theme parks:

• The BMO AIR MILES World Elite^®* Mastercard allows you to collect AIR MILES miles for Disney gift cards.
• The Scotiabank Gold American Express^® Card is the only card that earns 5 points per dollar for the following activities
• The Scotiabank Passport™ Visa Infinite* Card allows you to apply points towards park admission or other entertainment activities.

Never underestimate the importance of comprehensive travel insurance. It can protect you against unforeseen events such as trip cancellations, medical emergencies or lost luggage. Make sure you choose an insurance policy that covers all family members, with particular attention to the specific needs of children. Our partner, soNomad, can help you find the best travel insurance for you.

Types of travel insurance

Types of travel insurance vary according to your needs. This can include cancellation insurance, medical insurance, baggage insurance, and more. Choose the ones that best meet your specific family needs.

Select the credit card with the best coverage for your family

When selecting travel insurance coverage, be sure to take into account the needs of each member of your family. Some insurances offer specific coverage, which can be a considerable advantage for long family stays.

Here are the different credit cards milesopedia recommends for families for insurance:

• Up to 60 days of out-of-province medical coverage with the National Bank’s World Elite Mastercard^®.
• Up to 60 days of out-of-province medical coverage with the National Bank World Mastercard

The stories of families who have traveled together are an invaluable source of inspiration.

For example, Isabelle shows that it’s possible to have unforgettable adventures at Disney thanks to rewards points enabling her to save $7,674 on her trip, while Viviane shares her wonderful trip with her partner and family to Curacao, emphasizing the importance of patience and planning to accumulate points, which helped her save $5,630.

Checklist for preparing a family trip

Our checklist is an essential tool to make sure you don’t forget anything when planning your trip.

Mobile applications

What’s more, mobile apps dedicated to family travel can greatly simplify the management of your itinerary and expenses on the spot.