When planning for a beach vacation with family...

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how do you allocate your budget? Do you spend on a high class resort/hotel with the best facilites and great looking rooms or settle for mid-class hotels/resorts and splurge on food and shopping? Please let me know your suggestions as we are planning for a beach vacation for the first time with kids (2 years old and 5-months old). My husband and I have been to a lot of vacations together before, and we used to splurge on the resort and food. But now that we have kids, how do you think should be budget our vacation money?