With summer drawing to a close for another year, some people are already beginning to plan next year's holiday. Naturally, for those with a family, the school holidays are the favourite time of year for a week or two in the sun. The problem is, holiday companies take advantage of the fact that the months of July and August are the most sought-after and raise their prices accordingly.

It seems the cheapest option is for parents to take their children on the family holiday during term-time, but schools take a dim view of this, forcing parents to fill out endless forms to be passed to the board of school governors, who decide whether to grant even a single day off either side of a holiday. While it's debatable how much difference a week will make to a child's academic career, there's no doubt that it can make the world of difference to the price of a holiday.

For example, a one-week self-catering holiday to Fuengirola at the beginning of August costs in excess of £700 per person, yet the same holiday, in the same resort, taken at the end of September costs just over £400 per person. That's a saving of almost 50% for just a matter of weeks. However, you need to weigh up if saving £300 is worth sacrificing your child's education or risking trouble with the school board. Fortunately, there are ways to have a cheap holiday while sticking to school rules.

If the children are very young, they won't care so much where they go as long as there's things to play with. Try visiting one of the many beaches in Britain rather than opting for an expensive Spanish holiday – the sea may not be as sparkling but British sand is still good enough for sandcastles! Or, for older children, why not check out one of the many campsites in the UK, or even a cheap bed and breakfast or hotel in a city close to lots of shops and attractions? If you look around, there's no shortage of places to go and things to do in the UK.

But if it's a holiday abroad that you long for, think about looking into a house swap. This means trading homes with a family from another country – you stay in their home and sample the delights of hot weather in a different country, they stay in your home and sample…well, rain. But it's still a change from the norm, and house-swapping holidays are more and more popular in the days of increasing holiday prices. All it costs is the airfare and spending money, the accommodation is taken care of.

Some people, however, don't want to, or can't, offer their home up for a swap. If that's the case, all is not lost. Youth hostels, once thought of as run-down, "10 strangers to a room" hovels, are actually a clean, affordable way to have a holiday without compromising on privacy – most hostels offer private or family rooms. Youth hostels are found throughout the world, so the internet is invaluable if you think you might like this option.

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