5 Smart Money Tips for a Better Vacation

Is there any better feeling than pulling out a suitcase ahead of an upcoming vacation? Well, perhaps the feeling that comes from knowing you're saving money and packing in extra fun in the process. Here are a few of my favorite tips to optimize my vacation spending.

1. Save in the right place

If you're planning a future vacation and putting money aside to fund your adventure, you might assume it doesn't matter where you keep that cash -- but you'd be wrong. Leaving it in your checking account might mean accidentally spending it on bills or other purchases. But just rolling it into any old savings account won't do, either.

What you really want is a high-yield savings account, and there's a few reasons why:

• Your cash will grow: The best high-yield savings accounts are paying APYs 10 times higher than the national average (0.46%, according to the FDIC), and that means more vacation money for you.
• You can easily track your savings: Many high-yield savings accounts are offered by online banks, many of which offer excellent mobile banking apps. This makes it easy to check on your progress anytime.
• You might get access to sub-accounts: Your bank might call these "buckets," "pockets," or something else. But the upshot is that you get many savings accounts in one -- and you can set separate goals for each.

2. Consider travel insurance

Booking all the pieces of your trip might come with some anxiety -- what if something goes wrong? Unfortunately, life is unpredictable, and if you get sick or the weather goes sideways or some other calamity happens, you might have to miss or modify your vacation.

If this is a concern for you, you might want to buy a travel insurance policy. Before you do, be sure to explore any insurance benefits your credit card might offer, though -- you don't want to pay for coverage you might already have access to.

3. Be strategic with credit cards

Speaking of credit cards, if you have a travel card already (or are considering applying for one), I applaud this move. You have a range of options, from cards that are tied to specific airlines or hotel chains, to all-purpose cards that give you a higher rewards rate on travel spending and offer you the chance to redeem rewards for travel.

I used my favorite travel credit card to cover most of one of the cross-country flights for my last vacation -- and using that card on excursions and dining while I was on that trip meant I earned more points for future trips!

4. Go in the off-season, if possible

This tip is borne of my desire to keep improving my personal finances and avoid large crowds whenever possible. Unless you want to pay higher prices on lodging and activities and deal with hordes of people, I highly recommend exploring your options for off-season or shoulder season travel to popular destinations.

To use an example from my own life, the Maritimes region of Canada is absolutely beautiful in high summer -- but it's also packed with vacationers. I've had much better experiences visiting in May, which is before kids get out of school and before the summer weather truly arrives. I enjoyed empty beaches in a hoodie and jeans -- and a price about 50% less than my vacation rental would have cost in July.

Be careful, though -- sometimes the weather in a given destination is extremely unfavorable for tourism in the offseason. You don't want your trip to Florida to be ruined by a hurricane. Of course, if one threatens and you've got a travel insurance policy that covers adverse weather, you might not be out any money.

5. Stay flexible -- and do your research

Finally, flexibility can be your friend if you're hoping to pull off a dream vacation with as little stress and as much savings as possible. Remember to make backup plans (or at least sketch them in), just in case.

If the restaurant you've got your eye on for dinner is closed or not taking more reservations, research the area and see what else is available. Is it too expensive to take your whole family to the huge museum advertised on the highway exit sign? Instead, consider visiting the small historical society off the beaten path (it might even have a cool gift shop and an excellent place for your kids to blow off steam).

You will never regret doing as much research about a given destination as you can ahead of time, just to get the lay of the land and ensure you have plenty of options for fun when something goes awry.

Time away from home and your routines is a precious opportunity to relax and remember why you work so hard. Make the most of your vacation with these tips.