Planning Your European Vacation

What you'll find in this story: Tips for travel reimbursement, rules of mileage reimbursement, travel deductions, tips and secrets for saving money and free travel The key word is primary. As long as business--say, a convention, client meeting, or professional-organization gathering--is the primary reason for travel, your airfare, lodging, meals, car rental, taxis, and even tips and laundry can all be deducted. Self-employed consultants, independent salespeople, small-business owners, and freelancers of all sorts can regularly write off expenses on business trips. (Unfortunately, these folks are also more likely to get audited.) If your employer already reimburses travel expenses, you're not eligible. Don't expect the IRS to take your word that the motive for that weekend at Mardi Gras was business, however. If audited, you'll need not only receipts but records of meetings, seminars, and the like. The trip must also be directly related to your business, so a surgeon can't write off a visit to Cabo because he was casually thinking of investing in some condos. While work may be the main reason for the trip, it doesn't have to be the only reason. The "primary" rule also applies to the workday, and as long as the purpose of your day is business, the entire day's expenses are deductible. You may find plenty of time for lounging on a beach, hitting the golf course, or tossing chips at the roulette tables. To make sure that you get the most cash back (and that your claims stand up to an audit), be meticulous. Keep receipts, as well as a calendar, notebook, or computer log with a chronological account of what you do. A separate credit card and checking account just for business helps maintain order. "Be prepared to justify every expense," says Jackie Perlman, senior tax-research coordinator for H&R Block in Kansas City, Mo. Fully Deductible The IRS says "ordinary and necessary" expenses for business are 100 percent deductible, and that includes transportation and lodging as well as incidentals, such as Internet connections, phone bills, and laundry service. If you're driving your own car, the standard reimbursement--which takes into account fuel, upkeep, and depreciation--is 37.5¢ per mile for 2004, upped to 40.5¢ for the 2005 tax year. Think twice before using frequent-flier miles, because you're not allowed to deduct any value when cashing them in. "Use the miles to book personal vacations," suggests Benjamin Bohlmann, a CPA at Mallah Furman & Co. in Miami, "but pay for business tickets because they're tax-deductible." Airline miles and hotel and car-rental rewards points tallied up on business trips are a tax-free perk. Hotel charges are completely deductible only on days at work or in transit. So if you have appointments on Monday, Wednesday, and Thursday but don't return home until Saturday, the hotel bill for Tuesday and Friday nights is usually on you. There's an exception for weekends and holidays that fall between business days: For example, a schedule of meetings on Thursday, Friday, and Monday makes Saturday and Sunday expenses deductible because they become de facto business days--even if you work on nothing but your tan. Partially Deductible Half of the costs of meals and entertainment you incur because of work are deductible, and you've got a choice of either totaling up receipts or using the government-approved allowance, which varies from city to city (from $31 to $46 a day). Planning a vacation and throwing in a meeting or two does not equal a business trip, according to the IRS's definitions, and different rules apply. Let's say you spend six days in Houston visiting relatives, and on one night meet with clients over dinner. Neither airfare nor hotel would be deductible, though taxis to the restaurant and 50 percent of the meal are legitimate write-offs. "The job of the IRS is to find out, Was this person really working or just on holiday?' " says Neil Becourtney, a CPA for J.H. Cohn LLP in Roseland, N.J. Unless you can prove that friends or family members are employees of your business and necessary for work on the road, their expenses aren't deductible. Still, many business travelers bring family or friends with them on trips, and for good reason. The extra person's meals and airfare can't be written off, but car rentals and hotel rooms--which you'd be paying for anyway--are fair game. (For hotels, you can only deduct the single-occupancy rate.) Going abroad The parameters for domestic and overseas trips are basically the same: As long as the primary purpose is business, transit costs, lodging, incidentals, and 50 percent of meals and entertainment can be deducted if they're work-related. But the rules for foreign travel are applied slightly differently. You can deduct transportation costs in full if the trip lasts seven days or less (counting the day you return but not the day you leave home), or if you're gone longer than a week and business occupies at least 75 percent of your workdays. If you don't meet either of these requirements, you'll have to figure out which transportation you can write off based on the proportion of the trip dedicated to work. On another note, the government sets a $2,000 annual limit for deductions on cruises, but only on ships that are registered in the U.S. (and the vast majority aren't). In general, the IRS looks more closely when you deduct expenses incurred outside the country, so prepare a good defense as to why the trip is necessary. For example, an art professor can't expect to write off her summer in Europe, even if she's hitting a few museums that'll liven up her lectures. For more advice, consult irs.gov, particularly Publication 463 on Travel, Entertainment, Gift and Car Expenses, or talk to a tax accountant.

The first few years of a child's life are filled with precious firsts: first time riding a bike, first visit from the Tooth Fairy and more recently, first time flying. Long gone are the days when Americans didn't set foot on an airplane until their post-college years. Children today are seasoned travelers, rivaling businessmen for their frequent flyer miles. Maybe the more interesting trend is not that kids are flying but that they're doing so without Mom and Dad in tow, despite post-Sept. 11 security concerns and a series of "misplaced children" incidents during the summer of 2001 (remember all of the media coverage about the kids who were put on wrong planes and criss-crossed the country?). These accidents caused many airlines to revamp their unaccompanied minor, or UM, policies regarding minimum ages for connecting flights, said Kyle McCarthy, editor and a founding partner of the Family Travel Forum (familytravelforum.com). Then came the horror of Sept. 11, and for a brief period of time, many airlines would not accept UMs on any flights. Lucky for parents, the "no UMs allowed" ruling has since been reversed. "It [UM policy] has become more liberal again, and I think a lot of that is due to consumer demand," McCarthy said, noting that the demand comes from an increased mobility in today's society. She believes that more children are now traveling alone because of custody matters but also because extended families are living farther away from one another. She calls UM travel "a necessary evil." While many airlines don't keep tabs on or release how many UMs (usually considered ages 5-11 or 5-14) fly with it, the total number of children flying solo every year is likely in the millions--and growing. Northwest alone estimates that it flew with more than 150,000 in 2002, while Alaska shuttled more than 29,000 in that same time period. "Most of them [children flying alone] are shared custody issues right down to foster care," said Scheline Wright, head of Alaska Airline's UM center in Seattle. Wright often sees the same children multiple times in one year, and some fly so much that they have elite status with the airline. UM defined Five is the magic number when it comes to unaccompanied minors. If your traveling tyke is even one day shy of his fifth birthday, you'll be hard-pressed to find an airline willing to let him fly solo (don't try to get around this--many airlines ask to see proof of age during check-in). After that basic tenet, UM policies vary from airline to airline (see chart for details). Some, like Delta and Northwest, allow any minor ages 5 and up to travel on all flights, regardless of whether or not they are connecting, nonstop or direct. You'll find, however, that most major airlines give Junior a cut-off mark; often ages 5-7 (or 5-11) can travel on direct or nonstop trips only. Once you've determined that your child is eligible to book on a certain flight, be prepared to pay the regular adult fare. A seat is a seat is a seat--you don't get a discount just because your little one may weigh less than the complimentary pack of peanuts. You'll rarely find offers for special youth fares, and discounting tickets for UMs is a nonexistent practice. In fact, the additional UM fees can add up to one-third of the cost of a ticket onto your child's final fare. Super supervision: Show me the money Can you actually put a price tag on your child's safety? Well, yes. On top of the regular adult fare, most airlines require you to pay an escort fee for your UM. The rules vary, but escorts are usually mandatory for children ages 5-11 or 5-14, and you can opt to pay for one for your 12 (or 15) to 17-year-old as well (though be prepared for the deadly, parent-hating look your adolescent will undoubtedly direct your way upon departure). All airlines charge differently (see chart), depending on your child's flight type and destination. The gold medal for bargain escort prices is a tie--both Southwest and Jet Blue never charge for escorts no matter what, though it is only fair to note that neither flies internationally. International escort fees for the major airlines usually run from $40 to $90 each way for transatlantic or transpacific flights, while connecting flights range from $40 to $75 each way. Nonstop or direct flights are generally about $30 less each way, though there are some airlines (i.e. United) that charge a flat rate for all options. Because airlines' escort fees are all so similar, it doesn't pay to shop to see which one is a few bucks cheaper. Concentrate on finding budget fares. Escorts' duties are pretty straightforward, though nothing to be taken lightly--they ensure that your child gets on and off the plane and is supervised during the interim. Escorts (who may be customer service agents, flight attendants, etc.) are also charged with the very important job of helping your child connect to the right flight(s) and making sure that he is released to the proper person (each escort must sign paperwork documenting that they have turned your child over to the next airline employee). Think of them as really well-paid babysitters (hmmm&or not--what's the going rate these days anyway?). The escort fee also pays the cover charge at clubs--no, not generic airport bars and lounges, but supervised areas (usually at the busiest hubs where connections are common) that keep the kiddies occupied during any layovers. The airlines all call it something different--AirTran has Tranland, Delta has Dusty's Den--but basically they deliver the same things: big-screen televisions, DVDs, books, crafts and games. All of these diversions are for the sole purpose of alleviating the boredom the rest of us must suffer while waiting for our planes (shall we start a petition for such fun centers for adults? Anyone? Anyone?). Many UM sites also have their own bathrooms to provide for extra security, and all locations are supervised by airlines' staff. While the larger of these clubs are indeed added bonuses, frequent air travel can really add up, even with today's discounted airfares. Are there any ways to get around these additional fees besides flying Southwest and Jet Blue? While we don't want to deflate your hopes (or your wallet), we must tell you that the fees are rarely waived. That's not to say that it never happens--some airlines allow you to kiss the fees goodbye by applying the miles your child has accumulated through its frequent flyer program. Even if you can't get the fees waived, you can save money (and make the trip more enjoyable for your kid) if your child travels with a buddy. Most airlines only require you to pay a single fee each way when you book more than one child at the same time. Nothing is perfect UM programs are hardly perfectly-greased systems, and though the media hasn't reported any escort snafus recently, that doesn't mean that they don't or can't happen. While you don't always have power over what goes on with the escorts, you do have control of your child before and after the flight. A few things to be aware of: Give notice: When you're booking your child's flight, make sure that you tell the reservations department that your child will be traveling alone. Call up again a few days before departure to confirm that the airline has your child listed as an UM. Book wisely: Do not try to book your child on the last flight of the day. Most airlines won't do it (the same usually goes for red eyes, with some exceptions), for fear that your child might be stranded at the airport if something should happen. Prepare for problems: Read up on the airline's policies regarding delays and other unforeseen problems. For example, did you know that an airline can refuse to board your child if the weather is particularly perilous? Once in the air, you can track your child's flight by calling the airline or going to FlightArrivals.com(flightarrivals.com). Be an early bird: Get to the airport early (airlines recommend 90 minutes to two hours before the scheduled departure time). UMs are usually pre-boarded so that they can get comfortable with the plane and with their escorts. They may even get to take the much sought after tour of the cockpit--so lucky! Have it in writing: Don't leave home without the proper paperwork and documentation. Just to be safe, bring a birth certificate and other forms of identification that may be required (check with your airline). You will have to fill out a form that designates who is to pick up your child at the arrival airport. (Important note: the name you give the airline is the only person who pick up your child, tell Aunt Edna that she can't send Uncle Albert to get the kids if she's already promised to do so). And that individual must have identification with them. "That's a non-negotiable thing," said Wright, the head of Alaska Airline's UM center in Seattle. "We're really strict. There's no room for flexibility." Don't rush off: Stay until the plane is in the air. Just because it's on the runway doesn't mean it's going to take off right then and there. Parents often leave the minute the plane is on the runway, only to later learn that it returned to the gate due to mechanical problems. Give 'em "the talk": Talk to your "older" minors about respecting the UM rules. UMs are usually the last to get off of the plane so that flight attendants can keep track of them, but sometimes older kids like to walk off. This can create panic and confusion for both the guardians and the airlines, according to Wright. Review the rules: Look into your airline's rules for security checkpoint authorization. New security measures have been in effect since Sept. 11, and you will have to get a special pass in order to meet your child at the gate (note that some airlines only allow one guardian beyond security). "It might be an extra step, but it's a necessary step given the environment we're in," said Carlos Bertolini, a spokesman for American Airlines. You may also want to keep informed about new security issues by visiting the Web sites for of the Federal Aviation Administration (faa.gov) or the Transportation Security Administration (tsa.gov). Provide creature comforts: Make your child feel as comfortable as possible about flying alone. Pack a carry-on with some of his favorite games, snacks and a calling card in case he has to make an emergency call. Write out all of your contact information, as well that of the person picking him up, on a sheet of paper. Also write down the information for all flights he is taking during the trip. Some airlines will give children a pouch or a pin that holds all of these details, but it's best to go prepared with your own.

More vigorous in their 60s and 70s than any generation before them, many of today's American grandparents increasingly want to vacation with their grandchildren. And because vast distances often separate families--the young, child-raising couple sent to corporate outposts hundreds of miles away (which was less often the case in previous generations)--such a vacation is sometimes the grandparents' only chance for a good chunk of quality time with their grandchildren. And let's face it: grandparents also like it because it gives them a chance to play a role in their grandkids' upbringing, impart values, give them a sense of family and cherished memories of happy family times--all powerful motivators for an intergenerational trip. In 1999, one in ten family vacations--more than six million trips--were taken by grandparents with their grandchildren, according to a recent Better Homes and Gardens look at family vacations. But--and this is a major condition--many of today's grandparents want to make those trips on a budget. Though a handful of elitist tour operators charge two, three, and even four thousand dollars per person to design an intergenerational trip (and get enormous publicity when they do), the bulk of grandparent-grandchildren holidays are modestly priced and often overlooked. Without further ado, here are ten economical options for "grand-travel." Elderhostel To the surprise of many families, America's great travel institution for seniors provides scores of summer programs that are planned so that the kids have as much fun exploring new subjects and places as grandma and grandpa do. Elderhostel, which sends 200,000 seniors on inexpensive educational travel adventures around the world, now offers nearly 300 learning vacations designed for grandparents and grandkids. They can explore colonial life hands-on in Jamestown and Williamsburg, tour the Grand Canyon, or study the history of painting or sculpture at the Art Institute of Chicago. Weeklong programs in the U.S. and Canada average $500 for adults, less for children, including room, board, and activities-but not the cost of transportation to the site. Call 877/426-8056 or access elderhostel.org. Campus vacations Cornell University's "Adult University" in the pleasant little city of Ithaca, New York, draws a multigenerational mix to its bucolic campus for adult classes and special youth programs in summer for children as young as three. Older kids will be busy learning about animal biology, writing poetry, or horseback riding while grandma is sketching and grandpa is taking a history course. Fees include courses, lodging, most meals, and use of Cornell's facilities. Rates start at $960 per adult per week and $500 for the preschoolers, $760 for older children. If two children are registered, the younger one's fees will be cut in half. Phone 607/255-6260 or click on cau.cornell.edu. The national parks Because seniors 62 and older get a lifetime pass to all national parks for $10 (see the National Park Service web site at nps.gov for details), these federal treasures are top inexpensive bets for outdoor-loving grandparents and grandkids, guaranteeing lifelong memories. For both seniors and children, there are easy walks on paved trails, plenty of ranger-led programs, special activities for kids and families (like a "Yellowstone Buddies" environmental program for kids in the summer at Yellowstone National Park), and reasonable room rates at lodges within the park. Thus you can get lodging and breakfast for the whole gang for $73 a night in low season at Zion National Park. For lodges, beautiful-places-on-earth.com. Fun in the sun Beach resorts are popular "grand-travel" choices because, like cruise ships, they offer many organized activities for the small ones as well as the grown-ups. And you can save extra by traveling during shoulder seasons. With rates starting as low as $85 a night, Holiday Inn SunSpree Resorts have kids' activities, meals, and great beaches in 25 Sunbelt and island locales from Clearwater, Florida, to Scottsdale, Arizona. On the Bahamas' Paradise Island, all-inclusive rates (drinks, meals, activities, even airport transfers) start at $269 per person, and ages 12 and under stay and eat free. Find out more at 800/HOLIDAY or holiday-inn.com. Then there's Club Med (800/WEBCLUB, clubmed.com), the French-flavored resort chain now marketing not just to swinging singles but also heavily to families and seniors. Choose the week but let Club Med pick the family village you'll visit, and an all-inclusive week in the Caribbean or Mexico is yours for $899 per person, including airfare from many U.S. cities. And at certain Club Meds, kids stay for half-off. MeriStar's all-suite Sundial Beach Resort on laid-back Sanibel Island (just off Florida's west coast near Fort Myers) boasts a mile-long beach, five pools, children's "Fun Factory" program, and an Environmental Coastal Observatory Center with a 450-gallon "touch tank" that lets kids touch starfish and such. Summer rates start at $175 a night. Information: 800/965-7772, sundialresort.com. Go to camp A nonprofit organization called the Foundation for Grandparenting sponsors two weeklong "Grands Camps" during the summer at the rambling, historic, Great Camp Sagamore on upstate New York's Raquette Lake; there's even a special program for teens. Except for an adults-only session on more effective grandparenting, grandparents do all activities with the kids, including hiking, swimming, canoeing, tennis, picnics, and performing in a show. All meals are included, and prices start at $363 per person. Elderhostel runs similar summer programs at similar rates during different periods. To book or learn more about any of the above, check with the Sagamore at 877/426-8056 or sagamore.org, or with Elderhostel at elderhostel.org. The Sierra Club (415/977-5522, sierraclub.org/outings) also runs family camp programs that are ideal for active folks who like to camp and hike. There's even one in Lake Tahoe, California, designed specifically for grandparents and grandkids-you stay in a lodge, not a tent; for five nights, it costs $595 for adults, $495 for kids. The grand, 130-year-old Chautauqua Institution's sprawling campus in southwestern New York State offers more than 400 classes, plus special activities for ages 3-15 and dozens of intergenerational programs. Learn how to surf the Web, make rockets, or act out Shakespeare; there's also golf, tennis, swimming, and boating, and many concerts and other theatrical performances. Room rates start at $85 a night; ask about room-and-board packages. Details: 800/836-ARTS, ciweb.org. Go for the snow Many grandparents still like to ski or ice-skate-or at least simply cuddle with their wee ones in front of a fire while it snows outside. All over America, most ski resorts offer substantial discounts for seniors (inquire), and some, like Steamboat in Colorado and Snowbird in Utah, offer free skiing for kids 12 and under (with purchase of a five-day adult pass at Steamboat and a one-day adult pass at Snowbird). Six-night ski-and-stay packages (lodgings and lift tickets) for a family of four start at just over $1,300 (cheaper early in the season) at Steamboat in Colorado, a considerable savings for that many people. Call 800/922-2722 or log on to steamboat.com. In the East, an outstanding package at southern Vermont's Mount Snow, "Wicked Wild Weeks" starts at $636 for a family of four and includes five nights' lodging, lifts, adult clinic, and fitness classes (kids' ski school is extra). Information: 800/245-7669, mountsnow.com. And obviously there are other winter activities at all the resorts-heated spas, snowshoeing, snowmobiling, and of course shopping-and the same resorts provide excellent and even lower-cost recreation the rest of the year, including fishing, hiking, and simply enjoying the mountain scenery. Meeting Mickey, or Men in Black Obviously, Orlando's Walt Disney World, Universal Studios Escape, and SeaWorld have to be included as a high-priority destination for a grandparents and grandchildren's vacation, and while its educational value might be questionable, certainly no one will get bored! For deals in Orlando, the Orlando Convention and Visitors' Bureau Web site at Go2Orlando.com, includes online coupons. As for accommodations, two vast complexes are perfect for the intergenerational trip. The 800-suite Holiday Inn Family Suites (877/387-5437, hifamilysuites.com) features two-bedroom "KidsSuites" with a separate area for the youngsters with its own TV, VCR, and Nintendo 64. There's a 32-foot train that offers free rides around the resort, and a poolside kids' activity center. An ample hot breakfast and shuttles to Disney World are free; kids eat free all the time from the children's menu when with an adult diner; special SeniorSaver programs also apply to kids traveling with oldsters. Then there's the Marriott "Village" (the first of its kind) at Lake Buena Vista in Orlando, showcasing a low-cost Courtyard by Marriott, Fairfield Inn, and Spring-Hill Suites all in one campus just a few minutes from Disney World. There's a big water playground, restaurants, shops, and organized kids' activities, and room rates starting under $100 a night. Log on to marriottvillage.com. Cruises never miss! Grandparents and grandkids give cruises high marks because there are so many options for every age group. Just as important are the well-organized, supervised children's camps that operate most of the day and evening so granny and gramps can kick back. Even better, because of the number of new and ever-larger ships being launched, there are a lot of excellent deals as cruise companies struggle to fill cabins. Look, in particular, for cruises where the third and fourth passengers in the cabin go for under $200. To save even more, consider a three-or-four-day itinerary. And World Wide Cruises, one of the largest cruise-only discount agencies in the country, is touting some Royal Caribbean sailings this winter. Get details at 800/882-9000 or cruises.com. Even Princess has fares as low as $599. Learn more at 800/PRINCESS or princess.com. City lights Take the grandkids out on the town-your own or some other fun, colorful American city. Chicago, for example, has the likes of Sue (the world's most complete Tyrannosaurus rex) and American Girl Place (a shopping entertainment complex designed for little girls). Boston offers whale-watching and American history galore. Head to New York for Times Square and the Rose Center for Earth and Space at the American Museum of Natural History. In San Diego, there's the famous zoo and loads of family-friendly activities amid sun-splashed surroundings. Most major art and science museums now offer special hands-on family and children's programs. Visit the Web site of the Association of Science Technology Centers at astc.org to link to your science museum of choice; for art museums, try AMN.org. For the best hotel deals, go over a weekend and don't forget to check your desired city's visitor bureau for special promotions. Web sites such as Expedia.com and Travelocity.com also offer hotel deals, as does quikbook.com, with savings of up to 40 percent in many cities (or call Quikbook at 800/789-9887). A sweet spot indeed Home to lots of mouthwatering temptations including a factory turning out some 30 million chocolate kisses a day, Hershey, Pennsylvania, has avenues named Cocoa and Chocolate, and streetlights shaped like Hershey's Kisses. Hershey Park, with 60-plus rides and such, is one amusement park the grandparents will like as much as the kids, and there are plenty of other ways to keep busy: learning how chocolate is made at Hershey's Chocolate World, hands-on activities at the Hershey Museum, a 23-acre garden and Butterfly House, even a zoo. It's also just 45 minutes from Lancaster and the attractions of the Pennsylvania Dutch Country. Get fully informed at 800/HERSHEY or www.hersheypa.com (for Pennsylvania Dutch country information, contact 800/723-8824 or padutchcountry.com).

Every year or two when I return to Nebraska, my home state, my country cousins call a family reunion, and they treat me to a big steak or prime-rib dinner at one of their favorite restaurants. I appreciate their generosity. But I'm also well aware my meal isn't going to bust their budget, no matter how poorly the season's corn crop did. A land of spectacular wide-open spaces and a strong pioneer heritage, much of Nebraska is - to use a common phrase here - "dirt cheap," especially in terms of vacation costs such as lodging and meals. You can have a terrific time on next to nothing. I'll show you how, on a fun-filled, six-day, 800-mile tour into America's pioneer past - with time out for a dip in a lake or a budget-priced round of golf. Well, perhaps I exaggerate about the costs, but only a little. I'll give you a good example: This year the cousins took me to the Stockmen's Bar & Grill, a friendly saloon in Amherst, a tiny farm town near the center of the state. It's about 15 miles from the small city of Kearney in the Platte River Valley, where we all grew up together. My slab of prime rib, one-and-a-half-inches thick, all but filled my plate. Perfectly cooked, juicy and tender, it definitely was a hefty portion; the tab was anything but. With an all-you-can-eat salad, a baked potato, and a huge slice of cheese toast, my meal came to just $10.95 - and it was one of the priciest items on the menu. In Washington, D.C., where I live now, prime rib as good as this lists at $25 to $30 - and you have to pay extra for the salad. How cheap is Nebraska? In the little city of Beatrice in southeastern Nebraska, barely big enough to boast parking meters on Court Street, I stepped from my car and reached into my pocket for the quarter I expected to deposit. Wrong coin. In Beatrice, you get 30 minutes at the curb for just a nickel. Up the street, I took a peek at admission prices at the Holly Theater, which was featuring a first-run movie that went on to win an Academy Award. Most nights the adult fee is $5.50, about three bucks cheaper than what D.C. theaters are charging. On Sunday nights, though, everybody gets in for $3.50. Nearby at Tonka Lanes, a spiffy 16-lane bowling alley, a set of ten frames is $2.25 max per person; $1.85 for seniors. At the lanes near my home, it's $3.75. "So what?" you ask. "Why would I want to go to Beatrice?" I'll get to this in detail later. But for the moment think of a visit as a chance to hike through an expanse of tallgrass prairie - as high as an elephant's eye. In this part of the state, the first covered wagon trains heading west more than 150 years ago navigated a vast sea of towering grass - some of it reaching eight or nine feet. It once covered millions of acres. Nowadays, most of it is gone-plowed under for crops. But just outside Beatrice, the National Park Service has nurtured about 100 acres of tallgrass - one of the few places anywhere you can see this prairie marvel as the pioneers did. When I was there earlier this year, a strong wind whipped the grass into frothy, oceanlike waves. No state tells the story of America's pioneers as evocatively as Nebraska, and the Beatrice tallgrass prairie is only one example. Here and there, sod houses - the legendary "prairie palaces" - still stand. But back to cheap In the town of Fairbury, about 25 miles west of Beatrice, Kathy of Kathy's Cut-Ups, a family hair salon on sleepy Fourth Street, quoted me a price of $5 for a basic haircut; $7 if I wanted special styling. I won't tell you what I pay to have my hair cut at home, but Kathy would have to work nearly half a day to get what my stylist earns in 30 minutes. By the way, Wild Bill Hickok, the legendary gunfighter and lawman, launched his career in Fairbury by shooting a man to death in 1861. You can learn all about it at Rock Creek Station, a state historical park that preserves an authentic Pony Express stop. Here, too, you can still see the deep ruts cut by the wheels of countless prairie schooners passing through. Up in the beautiful Sandhills of north central Nebraska, massive 5,000-acre Calamus Reservoir at Burwell is where many Nebraskans - my cousins among them - go on vacation to swim, fish, boat, and to play golf on the nine-hole course at lakeside. This isn't Pebble Beach, where an 18-hole round costs more than $300 per person. But with the same sun beaming down, water views, and good companions, you might have just as much fun at a fraction of the expense. At Calamus, 18 holes sets you back an easy $18 weekends, $14 weekdays. "Visitors are flabbergasted," says Steve Senn, one of the course founders and owner of the Rodeo Inn (308/346-4408) in nearby Burwell. So far, I haven't mentioned lodging rates. They're cheap, too. At Senn's tidy 15-room motel, a night for two in summer is $32. Up the road at 16-room Bosselman's Pump & Pantry Motel (308/346-4607) it's just $39.95. Why is Nebraska so inexpensive? It's a big state, but the population numbers only 1.7 million, so there aren't a lot of folks competing to fill up motel rooms. And much of the economy is based on farming, which has good seasons and bad. Instead of spending in the good years, farmers tend to save for the bad. And incomes overall are generally low - for example, the state ranks 42nd nationally in teachers' pay - which keeps prices down. Recently Business Week cited a report showing Nebraska was one of the least expensive states in which to do business, based on the cost of labor, taxes, and energy. To keep your costs down, my central Nebraska itinerary steers clear of the big eastern cities of Lincoln (the capital) and Omaha (my birthplace). Book your flight to either - they're only 60 miles apart - but get out into the western countryside quickly. Omaha is served by Southwest Airlines (800/435-9792), and car rentals there tend to be cheapish. At the first state park you visit, purchase a $14 annual pass (per car) for all state parks and recreation areas. Wide-open spaces Before we get on the road, I want to clear up a myth about my home state. "Nobody ever takes a vacation in Nebraska," my friends tell me. "There's nothing out there but flatlands, cornfields, and cows." What do they know? They've never been there. Yes, there are cows - after all, this is prime beef country-and cornfields aplenty. And yet the green of the fields and pastures - every shade of green - is a constantly pleasing prospect. Far from flat, Nebraska is a land of rolling hills stretching off into the distance. Countless streams wander the countryside, which is splashed liberally with lakes and ponds, many open to the public for recreation. Their shady banks are a respite from the sun in summertime. But what really draws me back is the incredible immensity of the open spaces. To some, such emptiness might be stupefying - farmhouses are widely scattered and in many places trees are so few you can almost count them. But I find the solitude a release from the everyday clamor and clutter of urban life. It makes the spirit soar. Out here, I actually enjoy driving a car. Get on any of the back roads, and you can travel for miles without seeing another vehicle. When you do, it's customary to offer a friendly little wave as you pass. I like the down-to-earth quality of my fellow Nebraskans, and the homespun welcome visitors get here in America's heartland. A chance detour because of roadwork took me into the little central Nebraska farm town of Hershey at about noon on Sunday on my latest visit. A small sign in the town center pointed to the Volunteer Fire Department's annual fund-raising spaghetti feed, and so I stopped. Admission was a voluntary contribution; I dropped $5 in the pot for a home-cooked "all-you-can-eat" spread. Everybody knew everybody but me, but I was greeted eagerly by one person after another curious as to where I was from and how I'd turned up in their midst. For more visitor information, call 800/228-4307 or log onto visitnebraska.org. Pioneer paths Day 1: After landing in Omaha (or Lincoln), head immediately southwest for Beatrice, about 100 miles away. The attraction here is the Homestead National Monument of America (402/223-3514), site of the tallgrass prairie. No entrance fee. This verdant parkland marks one of the first 160-acre plots granted free to settlers under the famous Homestead Act of 1862, which opened the prairie to farming. More than 100,000 homesteaders made claims in Nebraska. Their successes and failures combating drought, grass fires, locusts, harsh winters, and the sometimes unendurable loneliness of the prairie is the story told in the visitor center's excellent museum. Stay at the 39-room Econo Lodge (402/223-3536), $40; the 44-room Victorian Inn (402/228-5955), $40; or the 64-room Beatrice Inn, which has a pool (800/232-8742), $41. On weekends, farm folk fill Sirloins and More, a cafeteria, where a half-pound rib-eye steak comes to just $8.29 with an all-you-can-eat salad bar. At the Beatrice Inn, the heaping roast beef plate at lunch is $5.25. Days 2 and 3: Head west via Fairbury (25 miles) and Red Cloud (another 75 miles) to Ogallala, an additional 150 miles. In Fairbury, you join up briefly with the famed Oregon Trail at Rock Creek Station State Historical Park (402/729-5777). Once the site of a Pony Express station, the 390-acre park preserves the deep ruts of the wagon trains as they crossed a small stream snaking among several small hills. An easy three-mile trail into the prairie is a welcome chance to stretch your legs. Exhibits at the visitor center's first-rate museum argue strongly that Wild Bill Hickok, glorified in legend, began his career with a cowardly attack on an unarmed man. If you stay in Fairbury, an inviting town of shady red-brick streets and Victorian mansions, try the 44-room Capri Motel (800/932-0589), $32 to $40. At the Stable Restaurant, an eight-ounce sirloin steak is $8.49; the porkchop dinner $6.59. On to Red Cloud, the sleepiest of farm towns but renowned as the childhood home in the 1880s of novelist Willa Cather. She often borrowed from her Red Cloud years for evocative books such as My Antonia, about the state's pioneer past. Her parents' tiny, two-story gabled home is still standing and open to escorted tours (adults $5) offered by the Willa Cather Pioneer Memorial (402/746-2653). As the oldest of seven children, she was awarded a private room in the attic - a surprisingly cramped space by our standards. If you want more time in Red Cloud, stay at the 17-room Green Acres Motel (402/746-2201), $34. Dine at the Palace Lounge; the chicken dinner is $7.75. You'll have more lodging choices in Ogallala, where you might want to tack on another day or two to spend more time at 35,700-acre Lake C. W. McConaughy (308/284-8800), a state recreation area. Sand-covered swimming beaches ring the lake, which has a sandy bottom thanks to its Sandhills location. Many Nebraskans come to fish-either by boat (rentals available) or from the shore (cheaper). Don't miss nearby Ash Hollow State Historical Park (308/778-5651), where you can see more Oregon Trail wheel-ruts carved as the pioneers guided their wagons down steep Windlass Hill. Stay lakeside at the 11-cabin Kingsley Lodge (800/883-2775), $55; in town at the very friendly 26-room Lakeway Lodge with pool (888/284-4431), $47; or the 45-room Plaza Inn (308/284-8416), $47. Join the townsfolk for dinner at Hoke's Cafe; chicken-fried steak is $6.95. Day 4: Drive northeast via North Platte (55 miles) to Burwell, another 115 miles. State Rte. 91 east from Dunning to Burwell, which winds on empty back roads through Sandhills country, is very scenic. Grass-topped hills stretch for miles, their slopes providing rich grazing for the beef that is on every Nebraska menu. In North Platte, take a look inside Scout's Rest Ranch, the home of Buffalo Bill Cody, at Buffalo Bill Ranch State Park (308/535-8035). The most noted Nebraskan of his day, Cody relaxed at his ranch here between his wild West shows. Horseback trail rides explore the adjacent countryside. If you decide to linger, stay at the 31-room Cedar Lodge, named for its stately trees (308/532-0970), $40. In Burwell, take advantage of the cheap rates at the Calamus Golf Course (308/346-4331) and spend time swimming, boating, waterskiing, or fishing at Calamus Reservoir (Nebraska Game and Parks Commission, 402/471-0641), a state recreation area. Nearby, Fort Hartsuff State Historical Park (308/346-4715), a well-preserved infantry outpost on the plains, recounts the often tragic clashes between settlers and Native Americans. You might want to linger at Calamus for another day. In Burwell, stay at the Rodeo Inn or Bosselman's (mentioned earlier). Dine at the Maverick Cafe; two porkchops cost $7.95. In Ord, 15 miles south, stay at the quite spiffy 51-room Airport Motel (308/728-3649), $47. Dine at the Veteran's Club; the rib-eye steak's $10.50. Day 5: Head for Kearney, 85 miles south. In summer, Fort Kearny Historical Park (308/865-5305)-the difference in spelling has tormented editors for generations - is the big attraction. Built to protect the Oregon Trail, it features a diverting introduction to the art of building a sod house. How did families keep the dirt from tumbling down from the ceiling into their food? They hung sheets overhead. Stay at the new 59-room Motel 6 (308/338-0705), $52; 70-room Budget Motel South (308/237-5991), $48; or the 34-room Midtown Western Inn (800/333-1401), $52. Dine at big, bustling USA Steak Buffet; the adult buffet is $8.70; over age 60, $7.79; children 12 and under, 55: times their age. Day 6: Return to Omaha (190 miles) to catch your plane home.