Top Holiday Money Tips

Article Category: Finance

Heading abroad this summer? It can be tricky to know how to handle your spending arrangements, especially if you’re going off the beaten track. Follow a few simple rules to make sure that you get the most for your holiday money this summer.

Currency Symbol On Holiday Beach - photo

Buy travel money before you go

Start paying attention to the fluctuations in the exchange rates a couple of months before you’re due to go. Buy your travel money at the right time and you can increase your spending power significantly. Even if you don’t have time to monitor the markets, get your money before you get to the airport for a better rate. If you prefer not to carry large chunks of cash for longer than you have to, a lot of travel suppliers offer pre-paid deals where you buy your travel money online and then pick up at the desk at the flight terminal.

Be wary of commission free deals

'Commission free' does not automatically mean a great rate. In fact, it’s probable that you’ll be given a worse exchange rate so that the bureau can make a profit. When comparing different rates and deals, just ask for the bottom line after any commission, flat fees or minimum charges.

Know what your money is worth

If you arrive in a country ‘cold’, with no idea what your travel money is worth in the local community, you’re likely to end up paying over the odds and perhaps even blow your budget on expensive city taxis or rip off tourist restaurants. Research how much your holiday money will buy in advance – and don’t assume that foreign climes will automatically be cheaper either, especially for imported goods. Our currency converter tool can help you work out the exchange rates for over 250 currencies.

Avoid using the ATM

Whilst it’s advisable to carry credit or debit cards abroad for emergency use, don’t make a habit of going to the ATM for your holiday spending money. Charges vary, but are usually in the region of $5 a transaction, and can easily mount up over the course of your break.

Take a mix of travel money

Take a mixture of cash, a credit card for emergencies and travellers cheques. Prepaid cards loaded in advance with Euros or Dollars can also be useful, although using these in ATMs can often lay you open to the same charges as when using credit or debit cards. Cash is obviously the most flexible method of spending abroad and isn’t too risky so long as you keep a receipt for all your withdrawals and stay within the cash limit on your travel insurance.

» Use our money conversion tool to check your travel money conversions.

Written by Jo Dimbleby