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How to make your travel money go further
We know holidays don’t come cheap, so every penny counts. Here’s how to make the most of your money when travelling abroad.
Holidays are one of life’s greatest pleasures, but they can come with a hefty price tag.
The good news is there are ways to reduce the cost, as travel sites compete for new customers by offering cheap deals on flights and accommodation. However, expenses while you’re on holiday should also be taken into account.
So, let’s look at how to make the most of your travel money. The following tips will help you to focus on relaxing, rather than worrying about your savings account.
Plan ahead
If you want to save money, it always pays to plan ahead and do your research before you take off. For example, are there any activities you want to do on holiday? If so, compare prices beforehand and book them in advance. This will put less strain on your holiday budget as the activities will already be paid.
Budget for daily expenses
Speaking of a budget - this is key to making the most of your travel money. Research the cost of living of your destination as it gives a rough idea of how much food, drink and other items cost. You can then use this information to plan a daily budget for expenses.
Try to also include an emergency budget, just in case you have any unexpected expenses - explore travel credit cards to help with this. This will then give you peace of mind that whatever happens, you’ll be covered.
Shop around for the best deal
Once you’ve decided on a budget, it’s time to decide how much travel money you’ll need. It’s a good idea to carry some cash with you and this should be bought before you leave the UK. Keep an eye on the exchange rates to understand the market and then shop around to find the best deal.
Rates will fluctuate over time, so it’s difficult to predict when to buy. Instead, decide how much currency you need and when you’ll need it - then take the plunge when you find a good deal. Keep an eye out for delivery charges and additional currency fees on travel money too.
Research local customs
Tipping is common in many countries around the world, but the amount will vary depending on where you are.
For example, some restaurants might expect a 15%-20% tip added to the bill. It’s always worth knowing this information to make sure you don’t overspend and you can then adjust the holiday budget accordingly.
Don’t buy travel money at the airport
One of the most expensive places to buy travel money is at the airport - so avoid making this purchase where possible. The exchange rate won’t be as competitive, and you could end up getting less money than if you had shopped around.
Remember to get insurance
If you will be carrying cash during your holiday, then consider getting travel insurance. Some policies offer cover if the travel money gets lost or stolen - always check the terms and conditions to make sure you are protected.
Choose a card that’s free to use abroad
However, if you prefer to stick to plastic, then make sure you aren’t using a debit or credit card that charges for spending overseas. Your regular card might have travel fees attached, so choose a specific travel credit card or explore prepaid travel cards.
Prepaid cards are great for budgeting as not only do they automatically convert to the local currency, but you can only spend the amount on the card.
Always pay in the local currency
One of the best ways to make sure your travel money goes further is to always pay in the local currency. This is a question you might hear when you’re spending abroad and don’t be tempted to pay in pounds. This is because local retailers might not have the best exchange rate, so you’ll lose out on some extra cash.
Check ATM fees before withdrawing
It’s important to remember you might also get charged during ATM withdrawals abroad. Double check for fees before you use the machine and try not to use ATMs regularly during your holiday. Instead, work out how much you need and just do it once.
Avoid roaming charges
Roaming charges can be an unexpected holiday expense, so turn off your phone or use it in aeroplane mode. You can also use free Wi-Fi in hotels and restaurants to avoid these fees. However, if you still need to get online then explore eSIMS as they allow you to change your data plan without needing to replace the physical SIM.
Consider exchanging money when you get home
Finally, if you arrive home with some spare holiday money, then many places will offer to buy the cash back from you. This includes foreign exchanges and the Post Office, but you’ll need to shop around to get the best deal. Alternatively, you can always save the money for the next trip!