Debt and Disney: A Not-So-Magical Partnership that CAN Be Avoided

Disney and Debt

While growing up, we would go to Disney parks probably once a year. Early 2000 Disney vacations didn’t cost what they are today, to reduce costs I never stayed in a hotel better than the All-Stars and only ate in the food court or a sandwich. I’m not sure if all these trips got my parents in debt but debt and Disney have become a pair for many families here in the United States. A Lending Tree survey of more than 2000 US consumers says 24% of visitors incur debt from trips. That number increases to 45% with parents with children under the age of 18. 2000 consumers isn’t a huge sample of the visitors to Disney World in the United States but with more than 50% of Americans not being able to pay a $1000 random expense I think the number could be very fair at 45%. Disney vacations today happen to be extremely expensive. 

This doesn’t help the idea that a trip to Disney World is a once-in-a-lifetime vacation and is viewed as a rite of passage for families around the nation. So, how can we lower this rate? Disney World should not be the reason you go into debt. 

Save Money

A bit obvious but people struggle with this basic skill. The savings rate of the average American isn’t very good. We are surrounded by consumption decisions everywhere. Any place we look there is a bigger and better advertisement fighting for your dollars. Maybe it’s a good thing to look up some money-saving strategies. One of my favorite ways to save money is using forced scarcity. Uncle Sam doesn’t let you touch your money before they get their share so you should do the same. Have a separate high-yield savings account that you make automatic contributions to. Also, try your best to get an account that doesn’t have a card, so you have more resistance to spending that money. Make sure it’s getting a decent return on your money. Most banks offer about a 4% return at the time of this blog. My emergency fund and other savings goals are sitting in a 4.3% high yield. The key is to not have a debit card, so you don’t fall into bad habits. The psychology part of personal finance is very important. Having a savings goal is a great way to have the motivation to save and keep going. 

BUDGET

I mean this in both meanings of the word. Budget your Disney vacation and your personal life. You will be surprised how ugly your spending looks when you put it on paper. The food and merchandise budget especially can explode at Disney World. Bottles of water for $4, soda for $5, steaks at certain restaurants going for $60. $60 character breakfasts with the food quality of a Holiday Inn free breakfast. Prix Fixe menus starting at $89 a person. This category can EXPLODE which is very similar to personal life, dining out is a huge cause of money loss. So, sit down, write out your budget, see what restaurants you can afford, and play around with decreasing other budgets to increase another budget. 

The other categories for Disney:

Lodging: you have to stay somewhere. If you go at a low crowd time, there are sometimes lower rates and even discounts. 

Tickets: unless you are just vacationing on Disney property without entering a theme park you are going to need tickets. Similar pricing with hotels, these can go up and down based on crowd levels and Disney does have discounts for certain days. 

Food: if you want to save money, Walmart can be your friend! 

Transportation: probably the worst and can be one of the most expensive areas of a Disney vacation depending on where you are coming from. No teleportation has been discovered yet.

Merchandise/Extras: lightning lane, cabanas, VIP tours, Stitch coffee mugs, there is no shortage of items you can spend money on at Disney. 

DO YOUR RESEARCH

This is a huge point here; you have to do your research to be able to create a budget. Look at all hotel options, look at all ticketing options, and play around with different dates. Disney can be a place that overloads your brain and wallet quickly with how many options there are. To have a plan coming in is a good way to lessen that. Manage your expectations. If you try and do everything, you can end up being really disappointed at Disney World and who wants to be a sad person at Disney? Just know you can’t do everything. Know your must-dos. Know your budget. Save up for the budget, and you’ll be able to take the trip without debt. 

Be DISCIPLINED

Disney is excellent at marketing. They put the smell of ice cream when you walk down Main Street which just so happens to sell ice cream at the end of it. As a newer example, they put the smell of beignets in several portions of Tiana’s Bayou Adventure and they have a stand that sells beignets right next door. Most attractions you get on will exit through a gift shop just to be able to leave. They have limited-release merchandise and food that gives you FOMO to rip out your wallets and pay for something that might end up in your closet or the trash. They trap you in that bubble of consumption decisions. The bus service doesn’t go to Walmart. They go to the theme parks, the hotels, or Disney Springs so they can inflate prices, and most people on vacation, financial minds at home, pay the inflated prices with no issue. “Magical money” is a term I’ve heard often where Disney money doesn’t count as real money until the credit card bill from your trip hits and smacks you in the mouth with thousands of dollars. 

Know your budget ahead of time, and save money every week into a magical money account. Do your research and be disciplined. You don’t need that popcorn; it is 100 degrees outside, $6, and it’s not very good.