We've got a direct debit set up for a set amount every month to a savings account. If there's any left over at the end of the month or if DH does any overtime that goes into it too. Holidays are really important to me but I'd never get into debt for one - before I book anything that can't be cancelled without penalty I make sure that either we've got the money already or there's definitely going to be enough by the time it comes around. If something unexpected came up and we found we were going to be short for the holiday I'd rather miss a year and stay home than borrow for it. When my DDs were younger, any money they got for Christmas and birthday they could have half to spend and the other half had to be saved for their next holiday.