Here are 4 money-saving tips for your next vacation from a financial literacy expert
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
With parts of the world reopening to tourists, many people may be looking to plan their next vacation. For some, this may be the first time they're venturing out since the onset of the coronavirus pandemic — and even with many travelers sitting on large stockpiles of points and miles, trips can be costly.
Sure, you can potentially use your rewards to cover your flights and hotel stays — but then there's food, tours, entrance fees to attractions, souvenirs and many other expenses. These can quickly add up, and if you're not careful, they could cause a major hit to your household's bottom line.
Fortunately, there are a number of concrete steps you can take now to save money as you look ahead to your 2022 travels.
Here are some ways to help pay for your next trip from Shirley Yang, vice president, Marcus by Goldman Sachs.
[table-of-contents /]
Set a goal — and a date to reach it
The first part of this suggestion is relatively simple. After all, anyone can set a goal. But according to Yang, setting a concrete deadline by which to hit that goal is what's complicated.
"Start off with estimating the extra expenses you expect to incur during the trip," she says. "Then, pick a specific date at least a month in advance of your departure date to have that amount of money set aside for your trip. This gives you a concrete deadline but also allows a grace period in case you come up just a bit short."
It may seem simple, but just putting pen to paper and articulating your goal and date to reach it can go a long way toward setting you up for success.
Related: 9 tips for taking a luxury vacation on a budget
Open a high-yield savings account
Once you have your goal in mind, another great step to take is to open a high-yield savings account (HYSA). You might currently have a traditional savings account affiliated with your primary checking accounts at your bank, but whether you have $10 or $10,000 in there, it's probably earning next to nothing in interest.
Compare that with the high-yield Online Savings Account from Marcus by Goldman Sachs that's currently offering an Annual Percentage Yield (APY) of 0.50% as of today (Dec. 7, 2021). That's more than four times higher than the national average.
With no minimum deposit, no fees, same-day transfers to (and from) most banks, and FDIC insurance, this could give your cash reserves a nice boost according to Yang.
Find ways to save on household expenses
Another way to save for your next trip involves those everyday purchases you make. After all, if you need an item, why not get it for less money?
One way to do this is via online shopping portals. If you have never utilized these sites before, you could have missed out on bonus cash for your online purchases. By beginning at one of these portals, rather than going directly to a merchant's website, you could earn an added bonus when shopping at select stores. This could be as low as 1%, but we've seen examples of 10% or even more — especially around the holidays.
Another option is to utilize subscription options for those household staples you need on a regular basis. Many online retailers offer a discount if you sign up for recurring shipments of select items. Again, if these are things you need to order anyway, it makes sense to save on them — though be sure to cancel (or postpone) future unwanted deliveries before they ship.
Once you've pursued these money-saving avenues, you could take those savings and funnel them right into that high-yield savings account — thus earmarking them for your trip.
Choose a credit card that gives you more
There are many great options out there for credit cards with cash-back rewards or with limited-time welcome bonuses. Some travelers may want to add one of these new cards to their wallets ahead of a trip. That initial bonus can be a good start to a vacation fund – then any additional earnings you get from your everyday purchases can further boost your account balance.
In addition, if your vacation will see you leave the country, be sure to look for a credit card option with no foreign transaction fees. If not, you could be adding up to 3% to every purchase you make abroad.
Finally, once you're on the trip, be aware of Dynamic Currency Conversion (DCC) — where you're charged in U.S. dollars instead of the local currency, generally at a much lower exchange rate.
Bottom line
It's exciting to think about the prospect of more normalcy in the world of travel, but saving up money for your next trip can be stressful. Fortunately, there are a number of ways to accomplish this — starting with setting a goal and a deadline and then taking steps like opening a high-yield savings account or adding a new credit card to your repertoire.
All of these items can help you feel confident as you prepare to embark on your long-awaited adventure.
Goldman Sachs Bank USA. Member FDIC.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 3X | Earn 3X Miles on Delta purchases. |
| 1X | Earn 1X Miles on all other eligible purchases. |
Pros
- Delta SkyClub access when flying Delta
- Annual companion ticket for travel on Delta (upon renewal)
- Ability to earn MQDs through spending
- Various statement credits for eligible purchases
Cons
- Steep annual fee of $650
- Other Delta cobranded cards offer superior earning categories
- Earn 100,000 Bonus Miles after you spend $6,000 or more in purchases with your new Card within the first 6 months of Card Membership and an additional 25,000 bonus miles after you make an additional $3,000 in purchases on the Card within your first 6 months, starting from the date that your account is opened. Offer Ends 04/01/2026.
- Delta SkyMiles® Reserve American Express Card Members receive 15 Visits per Medallion® Year to the Delta Sky Club® when flying Delta and can unlock an unlimited number of Visits after spending $75,000 in purchases on your Card in a calendar year. Plus, you’ll receive four One-Time Guest Passes each Medallion Year so you can share the experience with family and friends when traveling Delta together.
- Enjoy complimentary access to The Centurion® Lounge in the U.S. and select international locations (as set forth on the Centurion Lounge Website), Sidecar by The Centurion® Lounge in the U.S. (see the Centurion Lounge Website for more information on Sidecar by The Centurion® Lounge availability), and Escape Lounges when flying on a Delta flight booked with the Delta SkyMiles® Reserve American Express Card. § To access Sidecar by The Centurion® Lounge, Card Members must arrive within 90 minutes of their departing flight (including layovers). To access The Centurion® Lounge, Card Members must arrive within 3 hours of their departing flight. Effective July 8, 2026, during a layover, Card Members must arrive within 5 hours of the connecting flight.
- Receive $2,500 Medallion® Qualification Dollars with MQD Headstart each Medallion Qualification Year and earn $1 MQD for each $10 in purchases on your Delta SkyMiles® Reserve American Express Card with MQD Boost to get closer to Status next Medallion Year.
- Enjoy a Companion Certificate on a Delta First, Delta Comfort, or Delta Main round-trip flight to select destinations each year after renewal of your Card. The Companion Certificate requires payment of government-imposed taxes and fees of between $22 and $250 (for itineraries with up to four flight segments). Baggage charges and other restrictions apply. Delta Basic experiences are not eligible for this benefit.
- $240 Resy Credit: When you use your Delta SkyMiles® Reserve American Express Card for eligible purchases with U.S. Resy restaurants, you can earn up to $20 each month in statement credits. Enrollment required.
- $120 Rideshare Credit: Earn up to $10 back in statement credits each month after you use your Delta SkyMiles® Reserve American Express Card to pay for U.S. rideshare purchases with select providers. Enrollment required.
- Delta SkyMiles® Reserve American Express Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- With your Delta SkyMiles® Reserve American Express Card, receive upgrade priority over others with the same Medallion tier, product and fare experience purchased, and Million Miler milestone when you fly with Delta.
- Earn 3X Miles on Delta purchases and earn 1X Miles on all other eligible purchases.
- No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
- $650 Annual Fee.
- Apply with confidence. Know if you're approved for a Card with no impact to your credit score. If you're approved and you choose to accept this Card, your credit score may be impacted.
- Terms Apply.
- See Rates & Fees