They could simply put the vacation on their credit card and pay it off over time. We have the money ahead of time so as soon as it shows up on the credit card statement, it's paid for. Back to David Chilton's Wealthy Barber. If you wait to see what's left over after your expenses you'll be justified in not saving because you won't have much left. That's the way it is with money.
Smart savers do it the other way around.
The take the money they want to save and hide it before they can spend it. Sure it may mean cutting back a little, but that usually doesn't hurt as much as most people think it will. This all sounds like pretty basic information, nowhere near as exciting as a discussion of the stock market, technical analysis or long-term projections for the economy. But as simple a concept as saving appears to be, it's one that is being missed. And if you're not talking about saving at home, there's little to motivate your child to develop this life-long habit.