As we roll further into May, thoughts of summer vacations start to grow in our minds and we begin to look forward to our well-earned breaks away from the day-to-day routines. However, for many of us there is still a niggling problem associated with the summer trip abroad – money.
While no one will question the essential nature of having time away from home every year, there is no doubt about it, holidays can be expensive. Thankfully, there are one or two things that you can do to help cut down the amount that you spend while you are away, and they all apply whether you are sunning yourself in Spain or traipsing through the trails in Thailand. Let’s take a look at five of the best.
1. Don’t Pay In Pounds
When presented with the choice of paying in pounds or the local currency whilst using a credit card, you should always opt for the local currency. Choosing to pay in the local currency means that you will incur your banks charges for foreign exchange, not that of the local provider. This can make a significant difference to the final amount you’ll have to pay for your goods or services.
2. Using ATMs
While using a card abroad can certainly be beneficial in a number of instances, one area you must be careful with is withdrawing money from ATMs. Check out the fees for obtaining cash via your credit card before you travel. It’s likely that you will be charged around two to three percent more.
3. Exchange Money Before You Hit The Airport
Changing up money at the airport may be convenient, but you’ll be paying a premium for the privilege of doing so. In some instances, there have been reports of people being anywhere up to £320 worse off when exchanging as little as £1,000 in airports across the world, so make sure that you have your money sorted before you begin your journey.
4. Be Sure To Pack The Right Card
Many people still mistakenly believe that all credit cards are created equal. This, however, is one of the biggest mistakes that you can make whenever you are travelling abroad, and it can have a dramatic impact on the amount that you will spend while you are away. Spending on a credit card has its benefits when travelling, but it’s important to find the right one for you before you set off. Failing to do so could mean that you will be incurring an additional fee every time you use the card, and that fee could be as much as £8 for every £100 spent!
5. Leaving Your Currency Of Choice Behind
Believe it or not, one of the most common errors that costs holidaymakers dear is forgetting about the foreign currency that they bring home after they have been away. A recent study showed that the average holidaymaker has over £55 in foreign currency sitting in a drawer at home.