June 9th, 2026
By Margaret Allen
PRESENTED BY Crowne Point Tax & Wealth Counsel
THIS WEEK
The Trip Worth Taking — Without the Debt Hangover
Summer travel season is officially in full swing, and the spending that comes with it — flights, hotels, restaurants, rental cars, and the upgrades that feel small in the moment — is about to start hitting statements fast.
Here is the number worth pausing on. Americans traveling this summer expect to spend about $3,940 on flights and lodging alone, according to NerdWallet’s 2026 summer travel survey. That is more than 120 million travelers spending over $475 billion before a single dinner or souvenir is added in.
The problem is not the trip. It is how long it lingers. Most 2025 summer travelers who put their vacation on a credit card (74%) did not pay it off with the first statement, and more than a third (35%) still have not paid it off at all. With balances that carry interest averaging around 22%, a one-week trip can quietly turn into a year-long payment.
That is the summer version of a money mistake that is easy to make and easy to avoid: the fun is over in a week, but the bill keeps showing up every month.
The good news is that most travelers are already trying to spend smarter. Nearly nine in ten (89%) say they will take steps to save this summer, from driving instead of flying to choosing lodging on price. The trick is making those choices on purpose, before the booking rather than after the statement.
Before the next booking, run three quick checks:
Can you pay it off with the first statement? Nearly two-thirds of this summer’s travelers (61%) say they will. If you cannot, the trip costs more than its price tag.
Where is the money actually coming from? Cards are fine when they are paid off. Buy-now-pay-later, cash advances, and payday loans — which 17%, 13%, and 7% of travelers plan to use — are where trips turn into long-term debt.
What is actually worth the splurge? Decide before you go. A better flight time for a family trip may be worth it; a string of small upgrades you forget by August usually is not.
The goal is not to skip the trip. It is to make sure the only thing that follows you home is the photos.
ALSO THIS WEEK
Your Savings Rate Is Quietly Drifting Lower
If your high-yield savings account is not paying quite what it did a few months ago, you are not imagining it. NerdWallet’s latest rate check found that seven accounts on its list changed rates since early May — and five of them lowered their APYs.
The backdrop: the Fed left its benchmark rate unchanged on April 29, its third hold of 2026, with the next decision due June 17. Savings rates tend to drift with the Fed, and right now the drift is gently downward.
The good news is that the gap between a great account and a forgettable one is still wide. The national savings average is stuck at 0.38%, while top accounts with low minimums — like Vio Bank at 4.03% APY — pay roughly ten times that. A few pay more with conditions attached.
That gap matters most during travel season, when cash moves quickly — deposits, final payments, and summer expenses pull money out fast. Yes, the interest is taxable, but earning less is not a strategy. Earn the best reasonable yield, keep clean records, and plan for the tax impact later.
The move this week is simple: check your current APY, compare it against top high-yield savings accounts, and decide whether convenience is still worth the lost interest.
QUICK HIT
The European Travel Tax Refund People Miss
If Europe is on your summer calendar, one money move is worth knowing before you shop: the VAT refund.
Non-EU travelers may be able to claim back part of the value-added tax paid on goods they buy in Europe and bring home. The catch is that the refund usually depends on getting the right paperwork from the retailer, keeping the items unused until departure, and showing the goods and documents at customs before leaving the EU.
This does not apply to every purchase, and it is not a reason to overspend. But if you are already buying higher-ticket items abroad, skipping the VAT refund process can mean leaving real money behind.
The move is simple: bring your passport when shopping, ask the store about tax-free forms before paying, and leave time at the airport for customs validation.
THE BOTTOM LINE
Three Summer Money Checks Before You Go
Summer spending gets expensive when the money decisions happen after the booking instead of before it.
Start with the payment plan. If the trip is going on a card, know whether you can clear the balance when the first statement arrives. If not, the real cost is already higher than the price you clicked on.
Then look at your cash. Savings rates are starting to slip, but the difference between a weak account and a strong one is still meaningful. If travel deposits, final payments, or summer expenses are sitting in cash, make sure that money is working as hard as it reasonably can.
Finally, cut the charges that do not improve the trip. Bag fees, phone roaming, and small convenience upgrades can quietly drain more than people expect.
None of this means making vacation feel like homework. It means making a few decisions early so the trip does not follow you home as debt, missed interest, or avoidable fees.
Plan the payment. Check the rate. Skip the waste. That is how more of your summer budget stays yours.
That’s the week. See you next issue.
Margaret Allen
Editor-in-Chief
Smrtt Money
P.S. Tax season doesn't wait — and neither do the rules. The sooner you have a strategy in place, the more you keep. Book your free 30-minute session here.