5 Ways Gen Zers and Millennials Can Save for Their Summer Travel Goals

Thanks to their position on the ground floor of the workplace totem pole, young adults don’t typically earn the kind of salaries that make summer vacations easy to afford — but that doesn’t mean they have to stay home.

Check Out: 3 Places To Travel That Are Like Hawaii but Way Cheaper

Read Next: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy

Gen Zers and millennials whose ambitions to get away this summer outmatch their incomes should follow all the standard personal finance advice for anyone looking to spend less and save more — trim their subscriptions, cut out food deliveries, pick up a side hustle and, of course, trade those $6 lattes for a countertop coffee maker.

However, saving for travel brings unique opportunities that aren’t available to people putting away money for a down payment or a new refrigerator.

Save While You Spend With the Right Travel Card

Many Gen Zers and some millennials might be brand new to credit. For them, step one is learning how it works and how to use it responsibly to their advantage. Once they do, they can supercharge their savings by using the bank’s money to fund their summer trips faster than they ever could have saved up for a vacation on their own by carpooling or canceling Netflix.

There are four main ways to use a credit card to save money for a vacation without socking away your own cash — collect points, miles, loyalty rewards and bonuses.

Use a Points-Based Card for Flexible Free Money

While charging purchases might sound like an ill-advised way for young adults to save for a trip — especially if they’re new to credit — travel rewards let you save while you spend.

“Don’t underestimate the power of travel reward credit cards,” said Bethany Hickey, a personal finance expert with Finder.com. “Cash-back rewards on travel purchases can really add up — 5% on a $1,000 plane ticket is $50 in savings.

Cards that pay rewards in points tend to have the simplest and most flexible terms. Bank of America Travel Rewards Card, for example, pays 1.5 points for every dollar spent on all purchases everywhere and they never expire as long as the account remains open. As long as you pay your statement balance in full every month to avoid finance charges, you’ll save money for your trip with every purchase you make.

Explore More: Barbara Corcoran: Here’s Why I Never Fly First Class

Choose a Travel Card That Earns Miles To Save More Complimentary Cash

Another way to leverage credit to save for a trip without putting any of your own money aside is to choose a travel card with a miles-based rewards structure. They’re typically less flexible but can help you save more for your trip than many points-based programs.

For example, the Capital One Venture Travel suite of cards pays between 1.25 miles per dollar spent to as much as 10x miles for travel purchases like hotels and rental cars booked through Capital One, allowing you to save for travel while you spend on travel.

If You Love a Specific Carrier, Sign Up for an Airline-Branded Card

The third option is to choose an airline and apply for its branded card. That locks you into one carrier but can help you rack up loyalty points while doubling down with miles or points you earned from third-party cards.

For example, the Delta SkyMiles American Express Card gives you two miles per dollar spent on restaurants, takeout and Delta purchases — and you save 15% when you use those miles to book Delta flights.

Earn a Bonus That Pays for Most — or All — of Your Trip

Finally, you can save for your trip by opening a card that rewards you for joining. For most Gen Zers, there’s no simpler way to save more money faster — the right card can pay for your whole trip or close to it.

“There are plenty of credit cards that offer sign-up travel bonuses on your first few purchases,” Hickey said.

One of the juiciest incentives comes from Chase Sapphire Preferred. Never spend more than you otherwise would to chase bonuses, but if you plan to spend $4,000 in three months anyway, put those charges on your card and you’ll get a hefty 75,000-point sign-up bonus — that’s more than $900 toward travel when you book through Chase that you don’t have to contribute to a savings account.

But that doesn’t mean you shouldn’t complement your bank’s contributions with some dollars of your own.

Set Up a Dedicated Savings Account

With your new travel card compelling the bank to chip in for your vacation with every purchase you make, double up on your summer savings by setting up an interest-bearing account just for your trip.

“Establish a dedicated travel fund and set up automatic transfers from your primary account to a high-yield savings account,” said David L. Blain, CFA, CEO of BlueSky Wealth Advisors. “Even small, consistent contributions can add up over time. Also, consider using budget-tracking apps to identify and cut down on nonessential expenses and funnel those savings into your travel fund.”

You don’t have to open a new bank account — just a dedicated bucket in your existing account will help you reach your savings goal faster — and the faster you reach your goal, the faster you’ll reach your vacation destination.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: 5 Ways Gen Zers and Millennials Can Save for Their Summer Travel Goals