How much do you need to save for a trip?

Take the total cost of the trip, subtract what you've already put aside, and divide by the number of months until you pay. That's your monthly target. The total is where most budgets go wrong, because the headline price is rarely the whole trip.

How do you work out a monthly target?

A made-up example, to show the arithmetic:

• Trip total, with the extras below: $3,000
• Already saved: $600
• Still to save: $2,400
• Months until you pay: 8
• Monthly target: $300

If the trip is paid in stages, such as a deposit and then the balance, work out a target for each date.

Which costs do people forget?

• Package extras: airport transfers, checked bags, seat selection, taxes and fees. See how to compare vacation packages.
• Travel health insurance: your provincial plan may cover little or nothing outside Canada. See what your province covers.
• Card charges abroad: your card adds a foreign currency conversion charge to purchases in another currency. See foreign transaction fees.
• Cash and ATM fees: see changing money abroad.

How do you make the saving automatic?

The Financial Consumer Agency of Canada's tip for building savings: choose an amount, a date and how often, then set up an automatic transfer from your regular account to your savings account. You can time it for the days you get paid.

Is trip money the same as an emergency fund?

They do different jobs. The FCAC describes an emergency fund as money for unexpected costs and suggests building it towards 3 to 6 months of regular expenses. Keeping trip savings separate means a trip doesn't empty the money set aside for a surprise.

Can you keep trip savings in a TFSA?

Yes, and a few CRA rules are worth knowing first.

• Tax: income earned inside a TFSA, such as interest, is generally tax-free, and so are withdrawals.
• Limit: the TFSA dollar limit for 2026 is $7,000. Your total room also depends on past years. Check yours in the TFSA room calculator or CRA My Account.
• When room starts: at 18 for residents. Newcomers start building room on the day they become a resident, if they're 18 or older.
• What it can hold: cash, GICs, bonds, mutual funds and listed securities, among others. Trip money needed on a set date is often kept in cash or a GIC that matures before you pay.

What's the TFSA rule that catches trip savers?

When you take money out for the trip, that room only comes back on January 1 of the next year. Putting the money back in the same year, without enough room, is an over-contribution, taxed at 1% a month for as long as the extra stays in. So if you withdraw for a trip and then refill the account before year-end, check your room first.

Can you spend less on the trip itself?

• Try departure dates a few days either side. The price of the same trip can change.
• If a trip is on your list, write down its total price for a while before sale days, so you'll know whether a "sale" price is really lower.