photo credit: Roebot

Many people research ways to save money when planning a vacation such as airfare or lodging deals.  However, most fail to evaluate ways to save money while ON vacation.  Mr. Savvy and I recently returned from a week in Mexico.  Here are some of the tips we used to save money while we were gone.

• Set a budget before you leave - It’s easy to overspend if you aren’t careful.  Therefore I always set a budget for spending money before I leave.  I always have a notepad with me in general so I devote a sheet of this pad to my vacation spending.  I note what my budget is as well as how much of that is allotted for cash.  Then, as I spend, I jot down what I spent and when.  This also comes in handy when it’s time to reconcile your bank account or credit card statement.
• Don’t overpay for souvenirs - Souvenirs can pricey.  However, try to avoid the tourist areas and look for the same items in the areas where the locals frequent.  Also, only purchase items that you will truly cherish or use.  Do you really need yet another T-shirt?  On this trip, Mr. Savvy and I purchased a small sculpture for our home.  We’d been looking for an accent piece for our foyer and were able to kill two birds with one stone.  Now we have something memorable from our trip as well as home decor.
• Don’t bother with travelers checks or exchanging your money - Unless you’re going somewhere truly off the beaten path, travelers checks are of little use.  I prefer to use my credit card whenever possible as well as withdraw some local currency from the ATM for ‘walking around money’.  You can get a better exchange rate and avoid fees by making ATM withdrawals instead of exchanging money.  Also, if you withdraw more local currency than you need, don’t change it back to dollars (or your home currency).  The exchange rate is not as good.  Instead, apply your remaining local currency to your hotel bill and put the remainder on your credit or debit card.
• Consider the alternatives - Don’t be so quick to take advantage of the hotel offerings.  They’re often marked up.  As an example, instead of buying pricey snacks from the hotel shop, Mr. Savvy and I walked to a nearby convenience store and bought snacks and beverages to keep in our room.  Another couple in our hotel opted to take a taxi to Walmart to do the same.  Activities were also more expensive when booked through the hotel.  There was a snorkel tour being offered for $35 per person.  We took a cab to the same area (we had our own equipment) and snorkeled for $34 total.  We saved 50%.

Of course, this is not an exhaustive list but just a few ways you can save money while on vacation.  What are your favorite vacation money tips?