When it comes to your vacation, should you choose a destination and save accordingly, or start setting money aside and decide where to go based on what you can afford? It sounds like a chicken and egg problem.

Pick your vacation first

In theory, there’s nothing wrong with either approach. For most of us, though, trying to save without a specific goal in mind tends to ensure the only vacation we’ll be able to afford is camping in the backyard. If on the other hand, your kind of R&R is a spa retreat in the Swiss Alps, then pick a place and a date, cost it all out, and start saving your way there.

Choosing where to go first is also a good way to get your kids on board with the saving process, says Marcello Aquilina, a financial adviser at CIBC in Toronto. A family resolution to go to Disneyland, for example, will help you fend off many a temper tantrum over the necessity to buy new toys. Just say, “we can’t afford that – remember Disneyland?” and watch the magic happen, says Aquilina.

Cost it out

Once you’ve chosen your destination, draw up a reasonable estimate of how much it will all cost. Most of what should go on your vacation budget is obvious, but it’s helpful to keep a few pointers in mind.

Number one: If you have a travel rewards credit card, make sure to check your points balance, says Louise Shum, a CIBC financial adviser based in Vancouver. If it isn’t already enough to pay for all or most of your long-haul travel, you can estimate how long it will take you to accumulate the points you need based on your routine expenses, says Shum.

Second, remember to budget for local travel, too. While airfare normally takes up the lion’s share of transportation costs, neglecting to include a line item for things such as cabs and bus tickets can push you several hundred dollars in the red, says Noel D’Souza, a Toronto-based certified financial planner at Money Coaches Canada. For example, getting from Heathrow Airport to downtown London on the subway (or, rather, the tube) costs £6 ($10) per person, which works out to a whopping $80 round-trip for a family of four.

Third, if you’re going abroad, don’t forget about the exchange rate. That very trip from Heathrow to London and back would have cost $96 for a couple with two kids back in January, before the Brexit referendum sent the British pound plunging. You can take that uncertainty out of your vacation budget with credit cards like CIBC’s Smart Prepaid Travel Visa Card, which allows you lock into an exchange rate by loading foreign currency (U.S. dollars, euros, British pounds, or Mexican pesos) on the card well in advance of your trip.

Save in your TFSA, if you can

A Tax-Free Savings Account (TFSA) is the best place to park your vacation savings, if you have enough contribution room left, says Aquilina. “That way, while you’re saving money, you’re not accumulating taxes,” he notes. Using your TFSA for a $10,000 vacation can save you more than $100 in taxes – enough to pay for some nice souvenirs.

If your TFSA is maxed out, a high-interest savings account is the next best option, says Aquilina.

Use credit card alerts

Once the money is saved, the last step is implementation – i.e. making sure you actually stick to your budget. Shum suggests setting up a credit card alert. An electronic warning will land in your inbox once your balance reaches a certain level, reminding you to slow down the spending.

It’s a good way to make sure you don’t splurge while also avoiding the stress of tracking minor expenses, says Shum. After all, if you’re busy collecting every single receipt, you won’t have much of a vacation.