Start your airfare shopping as early as possible. Shop around online for the cheapest airfare and set up air fare tracker alerts that are available on many travel sites that specialize in finding the lowest fare possible. After a couple of weeks of tracking airfare, you'll recognize a great deal and can grab it as soon as you see it. Booking a less popular flight, like an overnight one, will save you a significant amount. Also, booking a flight with one or more stops, rather than a direct flight, will also stretch your vacation dollar. Use free miles if you have them to help lower the cost even more.
Visitors can enjoy Hawaii any time of year but deals can be had during the least popular time to visit, which is May. If you can plan your vacation in May you will save money since hotels try to fill up the rooms and are willing to slash prices. Airfares also tend to be cheaper in the spring, when weather warms up in the north. Many cultural events and festivals, such as the Merrie Monarch Festival, or the biggest hula competition in the world, take place in the springtime and will allow you to experience the true Hawaii.
Staying at a fancy hotel will eat up a large portion of your vacation budget. Instead, opt to rent a condominium, a timeshare or a family-owned vacation home. Another creative and inexpensive way to save is to take part in a home exchange with someone who lives in Hawaii. Maybe someone in Hawaii has always wanted to visit your hometown and is also looking for an inexpensive vacation as well. Hostels are another option for accommodations in Hawaii. The Waikiki Beachside Hostel in Honolulu is located less than a block of Waikiki Beach and has dorms starting at $13.16 per night, as of early 2011.
Instead of eating out for every meal, consider using the kitchen or kitchenette in the condo, house or suite you rent. Go to Walmart or any local grocery store and buy food for the week. Cereal, sandwiches and snacks will keep the kids full and prevent expensive dinners out. Pack a picnic and enjoy one of the many parks or beaches while you eat or enjoy your meal at your rental or hotel.
Take advantage of what the community has to offer. Live like a local and attend community classes that teach native dances, go to the farmer's markets where they usually have live music, or attend the free Royal Hawaiian Band concerts, which are offered throughout the year. If you visit a church on your vacation find out if they just happen to be having a church picnic where you could meet locals and enjoy a meal. A little research will yield a multitude of free activities for the whole family.