The Actual Cost of College: Breaking Down Tuition, Fees, and Hidden Expenses

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For American families and students alike, the pursuit of a higher education remains a critical investment. However, as a finance journalist with over three decades of experience, I must stress a fundamental truth: the published sticker price of a college—the daunting figure that first appears on a brochure or website—is rarely, if ever, the actual cost of college . To make informed personal finance decisions about a degree, a rigorous breakdown of expenses—including tuition, mandatory fees, and the often-overlooked hidden costs—is essential. Unpacking the "Sticker Price": Tuition and Required Fees The two most visible components of the cost of attendance are tuition and fees . Tuition is the core charge for academic instruction. In the 2023–2024 academic year, the average published tuition and fees were approximately $11,260 for in-state students at public four-year institutions and a hefty $41,540 at private four-year colleges. For out-of-state public university student...
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Budgeting for Travel and Leisure in Retirement

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Budgeting for Travel and Leisure in Retirement

Planning for Discretionary Spending on Hobbies, Entertainment, and Travel Without Depleting Savings

By a veteran personal finance journalist with over 20 years of experience

Retirement is often imagined as a golden period—freedom from the 9-to-5 grind, no alarm clocks, and time finally available to explore passions, reconnect with loved ones, and see the world. After decades of disciplined saving and working, the appeal of enjoying the fruits of labor through travel, hobbies, and leisure is not only understandable—it’s well deserved.

But for retirees in the U.S., especially those who are planning to stretch their savings over a retirement that may last 25 to 30 years or more, budgeting for discretionary spending like travel and entertainment is no small matter. These are the wants, not the needs—yet they are deeply tied to emotional well-being, quality of life, and what makes retirement feel rewarding.

This article aims to serve as a detailed guide for budgeting travel and leisure in retirement—one that balances enjoyment with financial sustainability. It draws from real-world experience, data-driven insights, and practical strategies honed over two decades of covering personal finance for Americans across income levels.

Why Travel and Leisure Deserve a Place in Your Retirement Budget

Discretionary spending is often dismissed as optional fluff—things you can cut out if needed. But in retirement, that perspective is outdated. Studies show that engagement in social activities, hobbies, and travel correlates strongly with mental health, lower rates of depression, and even physical longevity.

More than just escapism, travel and leisure offer structure and purpose in a phase of life where time can otherwise feel unmoored. Whether it’s touring national parks in an RV, playing weekly rounds of golf, joining a knitting circle, or taking a once-in-a-lifetime trip to Italy, these experiences help retirees feel connected—to their identity, to others, and to the world.

That said, joy in retirement shouldn’t come at the expense of financial peace of mind. Overspending on travel and leisure can lead to stress, force unwanted cutbacks later, or even increase the risk of running out of money in one’s 80s or 90s. The goal isn’t to avoid spending—it’s to spend smartly, deliberately, and sustainably.




Understanding Discretionary vs. Core Retirement Expenses

To effectively budget for leisure, it’s essential to separate core from discretionary expenses.

Core expenses include housing, utilities, healthcare, groceries, insurance, transportation, and taxes. These are relatively non-negotiable and persist through most stages of retirement, albeit sometimes in changing forms.

Discretionary expenses, by contrast, include dining out, travel, entertainment, hobbies, gifts, home upgrades, and recreational memberships. These may fluctuate depending on health, market conditions, or life stages. But just because they’re flexible doesn’t mean they’re unimportant.

A healthy retirement plan should prioritize core needs first, but explicitly reserve funds for discretionary desires. The best plans treat leisure as a pillar, not an afterthought.

The Phases of Retirement Spending

It’s a common myth that spending steadily declines in retirement. In reality, retirees tend to go through three spending phases:

  1. Go-Go Years (60s to early 70s): Active travel, hobbies, and adventures are common. This is often the most expensive leisure phase.

  2. Slow-Go Years (mid-70s to 80s): Travel slows down, hobbies shift to local activities, and physical limitations affect lifestyle. Discretionary spending begins to decline.

  3. No-Go Years (80s and beyond): Spending drops significantly for travel and leisure but may rise for healthcare and support services.

Understanding these phases allows retirees to front-load discretionary spending in the early years, while adjusting for future income and asset needs.

How Much Should You Budget for Travel and Leisure?

There’s no single rule. Much depends on your assets, income streams, health, and personal goals. That said, a good starting point is to allocate 10% to 25% of your retirement income toward discretionary spending, with travel often making up the largest portion of that category.

For instance, if your annual retirement income is $70,000 and you’re in the active phase of retirement, budgeting $7,000 to $15,000 a year for travel and hobbies is both reasonable and sustainable—assuming your core needs and healthcare costs are fully covered.

This amount may be higher in the first 10 years and taper off later. It should also be reviewed annually based on market performance, inflation, and health events.

Creating a Travel and Leisure Budget

The most successful retirees build their travel and leisure budget from the ground up—not from wishful thinking. Here’s a methodical approach:

  1. List Prioritized Goals: Identify must-do trips or hobbies (e.g., Alaskan cruise, grandchild’s graduation, buying a kayak).

  2. Estimate Cost Per Activity: Research realistic costs for each goal, including travel insurance, lodging, meals, and extras.

  3. Set Annual Discretionary Spending Targets: Break down lump sums into annual amounts that align with your income and withdrawal strategy.

  4. Include Inflation Adjustments: Travel and entertainment costs can outpace general inflation—plan for this over time.

  5. Build in Flexibility: Allow for trade-offs. One year’s big trip might mean cutting back the next.

Budgeting in this manner transforms vague aspirations into an actionable, dynamic plan.





Paying for Leisure Without Depleting Savings

The biggest challenge is sustaining leisure spending without undermining your long-term security. Here are several principles to help maintain balance:

Use Retirement Income Strategically

Discretionary expenses should ideally be funded from income streams that don’t require large principal withdrawals. Consider using:

  • Social Security for base expenses, freeing up portfolio withdrawals for travel.

  • Required Minimum Distributions (RMDs) to fund travel, if not needed for core expenses.

  • Annuity income, if available, to support consistent leisure spending.

Consider a Travel Fund

Some retirees create a separate, dedicated travel fund—either a savings account or a small taxable investment account—that they fund during the working years or early in retirement. This isolates travel spending from core savings and reduces guilt or risk of overspending.

Follow a Dynamic Withdrawal Strategy

Instead of withdrawing a fixed percentage each year, consider adjusting your discretionary spending based on portfolio performance. In strong years, travel more. In lean years, pivot to more affordable leisure options like road trips or local adventures.

Dynamic withdrawal models, such as the guardrails approach, can help avoid depleting assets prematurely.

Travel Smart, Not Just Often

Retirees can unlock value through travel rewards programs, off-season bookings, long-stay discounts, senior passes, and house-swapping services. The same budget can go much further with the right tactics.

Traveling during shoulder seasons or using credit card points can preserve cash while still delivering enriching experiences.

Aligning Travel With Retirement Cash Flow

Cash flow is often inconsistent in retirement. Some months involve Social Security only, while others might include quarterly IRA withdrawals, RMDs, or investment income.

To manage this, align travel and hobby spending with periods of higher liquidity—or consider setting aside a travel fund annually in advance rather than funding it spontaneously.

If you plan a large trip, consider timing it after RMDs or capital gains sales to ensure the funds are already in hand, and your core expenses are covered.

Planning for Travel and Leisure in Different Retirement Scenarios

Not all retirees are alike. Let’s consider how travel and leisure budgeting changes based on retirement context.

Couples vs. Solo Retirees

Couples tend to spend more on travel, especially in early retirement. But single retirees often face higher per-person costs (single hotel rates, no one to share transport, etc.). Planning needs to account for this difference in cost structure.

Solo retirees should also consider safety, group travel options, and ways to stay socially engaged while traveling.

Lower-Income Retirees

Even modest incomes can support rich leisure lives. The key is redefining leisure—think state parks, local festivals, volunteering, or train travel instead of airfare. Community centers and local groups offer free or low-cost entertainment. Joy doesn’t require luxury.

High Net Worth Retirees

Affluent retirees may not worry about affordability—but tax efficiency and spending discipline still matter. Just because you can afford $50,000 vacations doesn’t mean they’re optimal every year. Consider the trade-offs in longevity risk, legacy goals, and market volatility.




Healthcare and the Leisure Budget

One of the biggest disruptors to travel spending is an unexpected health event. A hospitalization, injury, or chronic diagnosis can permanently reduce mobility—and shift discretionary spending into medical categories.

To guard against this:

  • Front-load travel in your 60s and early 70s when health is most reliable.

  • Invest in travel insurance for big trips, especially international.

  • Consider buying long-term care insurance or setting aside funds specifically for future health costs, so they don’t eat into your lifestyle budget.

The Emotional Side of Spending

Beyond the numbers, retirees must confront the psychological barriers around spending. After decades of saving and deferring gratification, many retirees feel guilty about spending—especially on themselves.

This can lead to under-spending and a diminished retirement experience. Leisure is not frivolous—it is a core part of what gives retirement meaning.

Work with a planner or coach if you need to shift your mindset. The goal isn’t reckless spending—but intentional, values-based living.

Annual Reviews and Flexibility

No retirement budget is permanent. Market returns, inflation, personal goals, and health all change over time. Build in an annual review process to:

  • Assess last year’s travel and hobby spending

  • Adjust for this year’s priorities

  • Recalculate safe withdrawal amounts

  • Explore new leisure interests

What delights you at 65 may not at 75. Let your budget evolve accordingly.

Conclusion: Living Fully, Spending Wisely

Retirement is your time. You’ve worked decades to reach it. Budgeting for travel and leisure doesn’t mean extravagance—it means creating space to live richly within your means. It’s the art of making memories without sacrificing security.

When done right, budgeting for leisure is not just a spreadsheet exercise—it’s a vision board, a values statement, and a roadmap to joyful living.

So dream big. Plan clearly. And know that with the right strategy, you can explore, create, and enjoy—without fear of outliving your money.




Location: New Orleans, LA, USA

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