Top 10 Financial Tips to Help Local Families Thrive in Hawaii (Expanded)
Living in Hawaii isn’t cheap… we all know that. So we asked our Hawaii Reward Travel community on July 11th:
“What’s your best financial tip that could help other local families thrive in the islands?”
Dozens of you replied with creative, powerful, and practical advice. We read through every response (and a few expert-level emails 😎), and here are the top 10 tips we believe every local family should know. I am NOT a financial advisor, but just posting tips people shared with us. I also posted every entry at the bottom of this post.
1. Shop Smart: Farmers Markets, Costco & $5 Fridays
Hawaii grocery prices are among the highest in the nation, so finding creative ways to save on food is essential. Shopping at neighborhood farm stands and farmers markets supports local agriculture and can be cheaper than big-box grocery stores. Costco helps families save on bulk staples, and deals like Safeway’s $5 Fridays let you stock up on meat and produce for less. Many families freeze unused ingredients to reduce waste and stretch meals even further. Side tip: For Safeway $5 Fridays, there are more on sale items in-store vs. the weekly ad.
2. Cook at Home, Avoid the Convenience Trap
Eating out, especially on the islands, adds up fast. Even “cheap” takeout can run $15–$20 per person. Cooking at home allows you to meal prep, plan ahead, and reduce your food spending dramatically. Even small shifts like making your own coffee or packing lunch can save hundreds per month. Bonus: it’s healthier, too! I recently invested in a Traeger (smoker) and Blackstone Griddle for home cooking, ROI has been off the charts!
3. Use BILT to Earn Points on Rent & Travel Smarter
If your rent, your biggest monthly expense isn’t earning you anything, you should consider using the BILT credit card. It lets you pay rent without fees and earn points that can be transferred to travel partners like Alaska Airlines, Hyatt, and more. It’s one of the only cards that rewards rent and is a great strategy for families trying to travel without going broke. They plan on releasing a new BILT card for mortgages next year… Talk about a mayjah money saving strategy.
4. Use Credit Cards to Earn Points & Miles for Free Travel
Credit cards, when used wisely, can be powerful tools, not just for everyday spending, but for unlocking free flights, hotel stays, and upgrades through sign-up bonuses and reward points. The key is to never carry a balance and always pay your cards off in full each month to avoid interest, which can climb above 20%.
If you have good credit and financial discipline, applying for the right cards can help you and your family travel the world for a fraction of the cost. Want to get started? Apply through our Hawaii Travel Credit ʻOhana and we’ll help you choose the best cards to maximize your points and benefits.
5. Build a Family Financial Strategy
Money shouldn’t be taboo. When Ohana's talk openly about budgets, goals, and challenges, they can plan together instead of struggling alone. Whether it’s co-buying a home, helping the next generation with college savings, or just budgeting together, communication builds financial unity and long-term success. This is especially powerful in Hawaii where multi-generational living is common. Aloha is the key for longterm Ohana wealth in Hawaii.
6. Understand Hawaii’s Tax-Free Retirement Benefits
Most people don’t realize that Hawaii doesn’t tax Social Security or public pension income. Plus, if you have retirement plans like 401(k)s or profit sharing from a Hawaii employer, distributions may also be state tax-free if tracked properly. That means more money stays in your pocket during retirement. Work with a tax pro to avoid paying unnecessary taxes!
7. Tap Home Equity Strategically
Owning a home in Hawaii can be one of your biggest financial assets. A HELOC (home equity line of credit) allows you to borrow against your home’s value, often at a lower rate than credit cards or personal loans. Used wisely, it can help pay off high-interest debt or even fund a down payment for a second property. Just make sure you have a payoff plan and don’t treat it like free money.
8. Start a 529 Plan & Convert to a Roth IRA Later
Thanks to recent law changes, leftover funds in your child’s 529 college savings plan can now be rolled into their Roth IRA (up to $35,000 after 15 years). That means your investment for college can also jumpstart their retirement savings—completely tax-free. It’s one of the smartest legacy tools now available for Hawaii families.
9. Start an Emergency Fund—Even Small Amounts Count
In a place where everything costs more, having even a small emergency fund can be the difference between peace of mind and panic. Try to save just $25–$50 a paycheck in a separate savings account. Over time, that builds up and becomes your buffer when surprise car repairs, medical bills, or job changes hit. You don’t need thousands overnight, just start small, and stay consistent. As one community member put it, “Save a little every month. In case of emergency, get a little stash.” Automatic withdrawals help me with that, and helps put some pressure on me to budget my money after savings!
10. Live Below Your Means & Invest the Rest
It sounds basic, but it’s the foundation of all wealth building. If you can spend less than you make and consistently invest the difference you'll set yourself up for long-term financial security. Experts often recommend saving 15% of your income for retirement. The sooner you start, the more time compound growth has to work its magic.
Lastly, from Scottie.
I got into the credit card and travel game over 9 years ago because I was determined to save for a home in Hawaii, while still being able to travel. Today, I’ve been blessed to achieve both: I own a home here in the islands and have traveled extensively without ever paying a single cent of interest on any of my 38 credit cards. Yeah, I know… that’s a lot of cards! But this is what I do.
I don’t have a huge income. I work at a church and faithfully tithe over 10% of my gross income every month, and I have 3 young children! What’s gotten me here is a mix of God’s blessing and practicing financial wisdom. That same mindset is what I’m using to build legacy here in Hawaii and to help other locals do the same. May we continue to E Kokua Mai!
My Ohana: Scott (36), Mikela (31), Liam (4), Elora (3), Johanna (10 months)
Actual Responses from Instagram:
Start tracking your money! Shop at little neighborhood farm stands.
Take advantage of $5 Fridays at Safeway and Farmers Market. Freeze unused veggies and meats.
No go Disneyland
Costco and farmers market
Pay off the credit card every month!
Make food at home. Avoid as much as possible.
For those who rent... utilize BILT to help your family travel 🙌
*IF can.
Save a little $ every month. In case of emergency, get a little stash
Work remote for a mainland company.
Stop buying new Tacomas or Forerunners 😅
Have roommates & split as many expenses as possible
Don’t spend more than you earn!
Live below your means and invest the difference!
College 529 funds can now be converted into Roth IRAs after 15 years (supercharge your kids’ retirement!).
In Hawaii, employer retirement match distributions are state tax-free. Track your pension/profit-sharing accounts separately.
HELOCs can help consolidate debt or build equity, use wisely.
Family financial strategy and communication are powerful tools.
Build your “financial dream team”: Advisor, CPA, estate planner.
Remember: Wealth = better relationships + memories (money helps, but isn’t everything).
Save 15% of income, and you can likely retire at 65–67.
Geographic arbitrage: Rent out your Hawaii home and live affordably elsewhere.
Learn about Roth conversions—a powerful and underused retirement strategy.
Social Security & most pensions are state tax-free in Hawaii (if filed correctly).
