Don’t get us wrong: Winter is lovely. Snowmen and sweaters brighten even the grayest, most frigid days. But we’re still relieved that spring is (finally) on the horizon, and we’re eagerly planning some epic spring break adventures.
Spring break is an exceptionally popular time to take a vacation — particularly for college students and millennials. More than half of millennials surveyed in a study spearheaded by TripAdvisor planned spring break travel in 2018, and 2019 should be no different.
While some destinations are cheaper than others, travel ain’t free. In fact, Skyscanner found that the average spring break flight cost $602 last year… and that’s before you even purchase a single margarita.
Of course, if you’ve got a hefty student loan check in the bank, it can be tempting to use some of it to fund your spring break adventure. But don’t! It’s not worth the added agony down the line — or the cost of accruing interest — and it can add to an already-staggering student debt total. (The average debt figure for 2018 graduates was $29,800.)
Fortunately, there are plenty of pain-free ways to save up for a spring break travel budget. With the right tools and tactics, you won’t even notice the money is gone until you’re sitting back with your toes in the sand.
Here are some smart ways to trick yourself into saving up for the spring break getaway of your dreams.
If you have a smartphone, the key to spring break savings may already be in the palm of your hand. Here are a few apps that make it simple to turn your spring break plans into a reality.
This app’s name makes it sound like it’s your personal butler — and for good reason. Albert is all about using technology to create a custom financial plan that works for your situation, analyzing your income, spending habits and goals.
After you connect your various accounts, Albert keeps you apprised of rising bills and unexpected fees that can throw your budget off balance. Then, it automatically sets aside savings based on your habits, slowly amassing a cushion without you even noticing.
Finally, Albert users have the added bonus of communicating with Albert Genius, a service backed by live human financial experts, and which is available to you via text at any time. Albert allows its users to pay “what you think is fair” for the service, starting as low as $4 per month.
Available for both Android and iOS, Qapital is all about making saving fun. (Yes, fun.) You can set goals and rules to turn your penny-pinching project into a challenge, and the clean, bright interface makes it simple to see whether or not you’re staying on track.
Another cool feature of Qapital that makes it perfect for spring break savers: It allows you to set joint goals, where you and your friends all save for a common objective. In other words, you can get your whole spring break squad in on the game, which can help keep everyone motivated and achieve your goal easier.
Qapital’s fees start at $3 per month for basic service, and go up to $6 and $12 for its “Complete” and “Master” tiers, respectively.
Digit is also into saving money “without thinking about it.” It allows you to set specific, achievable goals. Rather than using an app interface, Digit is all text message-based, so it feels like sending a quick line to your friend … who just happens to be helping you save a ton of dough.
World traveler and former Student Loan Hero staff writer Susan Shain used Digit to painlessly save — get this — nearly $2,000. Although she’s an old pro at saving up for trips, she had never been able to amass an emergency fund, so she decided to try Digit to see if it would work.
“I noticed the app withdrawing small amounts of money from my account,” she writes, “but it was never enough to cause me any financial worry. When I finally logged in 10 months later, I was stoked to see I had saved almost $2,000. What a nice surprise!”
Yes, investing is all about the long game — and you need this spring break stash now.
But getting your portfolio started will put you in a better position to enjoy adventures later in life by allowing your money to be fruitful and multiply. The best time to start investing is when you’re young.
(Psst: A couple of the apps we’ve discussed above, like Qapital and Albert, also include investment options, so if you’re already signed up for them, have a look before you download another app!)
Just imagine how much money you’d have if every time you swiped your credit card, the spare change from your transaction was automatically rolled into an investment account.
Well, that’s exactly what Acorns does with its “Round-Ups” feature, which makes it possible to build a hefty nest egg without thinking about it. The app is also rolling out a debit card, which will make it easier than ever to stick to your budget.
Acorns is built with beginner investors in mind, providing a wealth of information on its Grow blog to help you take control of your finances. Its services start at $1 per month, and go up to $2 or $3 if you opt in for additions like retirement guidance.
Got $5 to spare? You’ve got enough to start investing — at least if you use Stash, an automatic investment app geared toward beginners. For a fee of $1 a month, you can set up small automatic deposits (think: five bucks a week) and allocate them into themed ETFs to ensure your portfolio matches your values.
Or, if you’re interested in investing in specific companies, you can take advantage of Stash’s fractional shares to buy just a little bit of big name stocks like JPMorgan or Alphabet. Stash also offers fee-free retirement accounts for users under 25, which may be worth taking advantage of if you’re eligible.
Not quite ready to download a savings app? Put off by the idea of paying to save?
Well, you can DIY the incremental savings that make these apps so effective by setting up automatic transfers at your existing bank account.
Although the exact steps to set up the transfer will depend on your specific bank, it’s usually not too difficult — in fact, you’ll likely be able to do so from your online account portal. Even setting aside as little as $10 per week can really add up over time, especially if you move the money into a high-interest savings account, where it’ll earn a little extra.
Rewards and loyalty programs
It seems like every store you go to, there’s another customer service agent asking if you’d like to sign up for the rewards program. And while it can get tiresome, you can actually score some substantial savings if you take advantage of those rewards.
For example, Shell’s Fuel Rewards system earns you 5 cents off per gallon every time you spend $25 inside participating stations (which isn’t hard to do if you frequently run inside to grab a snack).
Five cents per gallon may not sound like much, but it can really add up, especially if you’ve got plans to drive somewhere far away, like Orlando. You can also earn points at Shell by purchasing gift cards for companies like Amazon and Apple, so if you’re already planning to spend money at those companies, you might as well buy the card instead.
Another popular loyalty program, particularly for java-fueled college students, is Starbucks Rewards, which allows you to earn points, or “stars,” each time you spend a dollar at Starbucks.
These stars can later be traded for free food and drink items, and you’ll also get exclusive access to member events, offers, free refills, a free birthday reward and more. At two stars per dollar spent and a reward once you collect 125 stars, you’ll get a freebie every $62.50, not counting star bonuses. And let’s be real — it’s easy spend that at Starbucks in a month.
Saving for spring break doesn’t have to be painful
Even if you’re planning an all-out spring break bash, you don’t have to break your back saving the money to get there. Small steps, like downloading a savings app, can reap big rewards without wrecking your lifestyle.
Need a student loan?Here are our top student loan lenders of 2020!
|* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
1 Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.
2 Important Disclosures for College Ave.
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
(1)All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
(2)This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
(3)As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 11/4/2019. Variable interest rates may increase after consummation.
3 Important Disclosures for Discover.
Discover's lowest rates shown are for the undergraduate loan and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.
4 Important Disclosures for CommonBond.
Offered terms are subject to change and state law restrictions. Loans are offered through CommonBond Lending, LLC (NMLS #1175900).
5 Important Disclosures for Ascent.
Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB). Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. Loan products may not be available in certain jurisdictions, and certain restrictions, limitations; and terms and conditions may apply. Ascent is a federally registered trademark of Turnstile Capital Management (TCM) and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.
* Application times vary depending on the applicant’s ability to supply the necessary information for submission.
5 Important Disclosures for Citizens.
Undergraduate Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As March 1, 2020, the one-month LIBOR rate is 1.62%. Variable interest rates range from 2.72% – 10.98% (2.72% – 10.83% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. Fixed interest rates range from 4.72% – 12.19% (4.72% – 12.04% APR) based on applicable terms, level of degree earned and presence of a co-signer. Lowest rates shown requires application with a co-signer, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens One is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.
Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer with the Education Refinance Loan. Borrowers should carefully review their current benefits, especially if they work in public service, are in the military, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans and replace those with the benefits of the Education Refinance Loan. For more information about federal student loan benefits and federal loan consolidation, visit http://studentaid.ed.gov/. We also have several resources available to help the borrower make a decision at http://www.citizensone.com/EdRefinance, including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review.
Citizens One Student Loan Eligibility: Borrowers must be enrolled at least half-time in a degree-granting program at an eligible institution. Borrowers must be a U.S. citizen or permanent resident or an international borrower/eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For borrowers who have not attained the age of majority in their state of residence, a co-signer is required. Citizens One reserves the right to modify eligibility criteria at anytime. Interest rate ranges subject to change. Citizens One Student Loans private student loans are subject to credit qualification, completion of a loan application/consumer credit agreement, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens One Student Loans-participating school.
Please Note: International Students are not eligible for the multi-year approval feature.
Loyalty Discount Disclosure: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
Automatic Payment Discount Disclosure: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
|2.75% – 10.65%*,1||Undergraduate and Graduate|
|2.84% – 10.97%2||Undergraduate, Graduate, and Parents|
|2.80% – 11.37%3||Undergraduate and Graduate|
|3.52% – 9.50%4||Undergraduate and Graduate|
|3.14% – 11.88%5||Undergraduate and Graduate|
|2.72% – 10.98%6||Undergraduate and Graduate|