european vacation suggestions - family of 5

It's a wonderful age for traveling and great memories for your kids. These are more generic suggestions on saving money for vacations.
We use credit cards that give points back for traveling - SPG is the best value and it gives you points towards free hotels at Westin, lemeridien, Sheraton, W, etc hotels. We use the credit card for EVERYTHING, groceries, gas, everything. At the end of a year we have enough points for about a week's worth of free nights in Europe. The value is excellent. As an example, we just got back from 10 nights in Spain and got to stay in 4 and 5 star hotels for free. Assuming you are good about paying off your credit card monthly, I can't recommend this option enough. There are several other point/money back credit cards but SPG has the best % return for someone who travels, especially in Europe.

Okay, for cheaper European destinations I would suggest Croatia, and also the other eastern European countries (i.e. Poland, Hungary). Italy is my favourite country and can be done not so expensively (i.e. pasta and wine are cheap, regional trains are reasonably priced).

In general, most European countries can be done for relatively inexpensive to extremely expensive depending on how you travel but some countries give you more budget-conscious options. Just got back from Spain and travel within Spain is not so cheap and we found it more difficult to get cheap meals (definitely not impossible though).

You might consider Munich as a destination. We spent a week there a few years ago with two college kids in tow. They loved it! Very easy to get around, lots to see & do in the area. It was safe enough that the girls were able to go off and do their own thing, while DH and I did what we wanted. It was also very easy to grab a train to do day trips. We did day trips to Salzburg, Austria, the Neuschwanstein Castle, as well as the Audi factory in Ingolstadt. DD is a car fanatic and wanted to visit Audi to see where her car was made. I am so not a car person, but will admit to finding that trip fascinating! If you have a car fanatic in your crew, then definitely check in to a tour at one of the German motor companies.

I would suggest Prague. Very old European in feel and reasonably inexpensive. Lovely river, a castle and some decent museums.
I also like Berlin - so much history everywhere you go, and reasonably priced for Germany, though not as cheap as eastern Europe.

Lucky you to live in Munich!  Loved the city and the area!  We didn't think it was that expensive, but our comparison at the time was to our costs of living in Paris.  We ran out of time for the BMW tour.  DD's goal is to eventually hit all the factory tours in Germany. 

 

We're currently planning for London next year. London is expensive, but if you take advantage of the many free museums, and 2 for 1 attraction tickets, plus stay in an air bnb, it will definitely make it more affordable.

We went to London last summer and rented a flat through Airbnb in Notting Hill. It was a great experience. We were invited to the neighborhood summer barbecue and got to meet people from all over the world who lived there. We used the flat as a base to visit London museums and attractions and took day trips to the West and North. We also went to Cardiff by train for the weekend. Wales was wonderful and can't wait to explore the area more.

I have been told that Eastern Europe is more reasonable.

I have always thought Quebec City would be an alternative to Europe. The Canadian dollar is favorable to the U.S. dollar, too.

A good forum to check out is the Rick Steves' Travel Forum.

Yes!  We loved that in Paris, too.  Something else I forgot to add - if you're in a city with good public transportation, staying a little outside of the city center/tourist area is both cheaper for lodging and for meals.  In Paris, we stayed in the Republique neighborhood.  Cafe meals were much, much cheaper than those near the Louvre area (and every meal we had in Republique was excellent, whereas the touristy cafes were pretty mediocre), and we felt like we had a more truly Parisian experience than we would have in the main tourist areas.  There was a grocery store below our apartment and over one section, and we loved shopping in there (and it was cheap!) and trying the unfamiliar items and brands.  We were a two-minute walk from two different Metro stations and could travel almost anywhere we wanted to go in about ten minutes.

Eastern Europe is probably where you get the cheaper deals these days, and I hear Prague is a great city to visit. Poland is another country to look into, as well as some of the baltic countries.

London is expensive, and trust me when I say this. I live in Norway which is probably one of the most expensive countries in Europe Even with great deals and airBnB it's going to cost you a fortune.

We went to Spain last summer, and it can be a bit pricey there because it's such a popular tourist destination, but I bet you can find some good deals there as well. One tip is to look into renting holiday apartments (not airBnb) privately. There are web sites for that as well. That's what we did last year, and we got a large vacation house with a private pool for a lot less than what a hotel stay would have cost us.

This! We rented an apartment in Barcelona that was 3 br/2ba for about $200 a night and it was just the two of us. It would have been a super deal for a family. We ate breakfast in most days, and were able to do laundry right there in the apartment. 

Note: European hotel rooms are much smaller than US hotel rooms

We went on a Norwegian Cruise Lines for the Baltic Cruise. LOVED IT! It is fairly all-inclusive. Everything (but alcohol and gambling and spa) was included. From the airfare to transport, hotel, ship, food on the cruise (we did the land add on). They have excursions you can book ahead (highly recommend as you plan it all in advance and you are assured of getting what you want)- these cost extra. There are kids activities on the ship. On the excursions, they have guides and they are accompanied by ship personnel who kept VERY good track of everyone. My mom got separated from the group, and they were ON it. They would not let us try to find her either. I would not hesitate to let older children go on an excursion by themselves. There was also an overnight in Copenhagen and we were able to go to the park that inspired Walt Disney to do Disneyland.

I think one easy way to save money on travel in Europe is by walking a few blocks from the main tourist attractions to find a little out of the way place to eat. The prices will be better, the food will be better and you'll have a more authentic experience.

Also, the more you plan out your day in advance, the more accurately you can budget your expenses and avoid impulse purchases that add costs to your trip. If you read the Rick Steves forums which GypsyGirl recommended, as well as the TripAdvisor forums, you'll know, for example, which attractions are must sees, and which can be skipped. You'll also know which tickets to each attraction are the best value for your family.