My family prioritizes memorable vacations for our kids, and a long-term strategy using gift cards is how we afford it

Author Samantha Chavarria's children at Disney World. Courtesy of Samantha Chavarria

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• After growing up without family vacations, my husband and I prioritize them for our children.
• Our first family trip to Disney World inspired us to start using gift cards for our next.
• Now, we pay for all kinds of family vacations through gift cards we purchase during the year.

My husband and I both came from the type of paycheck-to-paycheck households that didn't leave a lot of room for luxuries.

In comparing childhoods, one of the big things we both missed out on were fun family vacations. I spent every vacation watching my dad do repairs at my grandma's house while my husband's only holiday was a yearly Boy Scouts camping trip. The lackluster vacations of our youth and the shared love of travel we cultivated as adults made us determined to do more for our kids. Our goal was to create memorable family experiences that we could look back on fondly. 

However, those memorable vacations often have a big price tag attached, and saving up for all the expenses that come with family trips can be tough. Luckily, my family uses a tried and true method to guarantee we have funds are in place for every vacation: gift cards.

Our first trip to Disney World got us hooked on gift cards

Gift cards aren't just for the holidays. In fact, in the US alone, they are a multi-billion dollar industry that shows no signs of slowing in growth. Most people are aware of gift cards for restaurants or retail stores, but the purchasing power of gift cards is nearly limitless. With this in mind, my family has used gift cards as a way to conveniently and painlessly pay for and plan our vacations.  

It all started with Thanksgiving. A few years ago my family started the tradition of vacationing during the Thanksgiving break in order to avoid the drama of an extended family holiday. It took pinching our pennies for several months for us to afford our first family vacation, a week at Disney World. But the financial sacrifices proved to be worth it because we had an unforgettable vacation. At the end of our trip, we were inspired to purchase a Disney gift card as a promise that we'd return next year. 

That first purchase inspired us to give our kids Disney gift cards as Christmas stocking stuffers so they'd have some fun money on our next trip. It also motivated us to request Disney gift cards from family gift exchanges. Throughout the year, we gifted the kids gift cards for Valentine's Day and Easter while also purchasing gift cards whenever our family budget allowed. By the time we planned to book our trip, we had plenty of funds secured through our gift cards to cover the bulk of the expenses. 

The gift card method we used for this second trip made paying for that vacation so effortless that it became our yearly strategy. 

Now, we use gift cards for all kinds of vacations

And Disney isn't the only destination we've financed this way. My family has used gift cards to cover the expenses of gas for travel, car rental, hotel stays, and even cruises. Airlines and travel booking sites also offer gift cards that cover the expense of flights. Gift cards can also be used to plan memorable experiences like wine tastings, food tours, classes and lessons, spa treatments, and any number of other adventures that will make your vacation experience extra special. 

With gift cards more popular than ever, you're bound to give and receive a few of your own every year, even if you don't plan to buy gift cards specifically for the sake of vacationing.

In 2019, the gift card industry sold approximately $98 billion in digital and physical gift cards. However, because of unused funds and card maintenance fees, 2% and 4% of gift card balances don't get claimed by consumers. This means that US companies make between $2 billion and $4 billion every year from unclaimed gift cards. In other words, companies not only make money from their initial sale of gift cards but also from breakage — or the money left unused. 

Knowing this, it only makes sense to be mindful of what gift cards you give and receive, and how you use them. To avoid losing out on a gift card's value, check the maintenance fee policy on each card you receive. When you're ready to make a purchase, check your balance and avoid overspending (going too far over your balance) or underspending (leaving a balance on your card that will go to waste). Finally, if you are gifted a card that you know you'll just never use, check out sites that will help you trade gift cards or resell them for cash. 

Whether you're using gift cards to save up for your family's dream vacation or for a major purchase, buying gift cards is an ideal alternative to conventional saving.