Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money. If you have a question or need help, you can chat to them here.
As a young person with a small budget, a holiday is a luxury and I want to be clever with my spending money. Here are some key tips I’ve found useful when going abroad:
Booking a holiday can be costly enough without overspending once you’re there. Set a realistic budget and stick to it. Our app, Pennies to Pounds, allows you to set a target date, and breaks your saving down into easy, weekly amounts to help you save up for your holiday.
The best deals are often on beauty and cosmetic items, whilst alcohol, accessories and electronics may be the same online and in-store, or even more expensive.
Exchanging cash for local currency is an obvious option when going abroad, but there are a few things you should keep in mind. Use comparison websites, like travelmoney.moneysavingexpert.com, to find the best exchange rate. Airport bureaux de change are expensive so it’s best to get your currency in advance. Find more information on buying currency here.
Relying on cash alone isn’t a great idea as, if it gets stolen, you’re stuck! Keep a moderate amount of currency somewhere safe – maybe some in the hotel safe and some on your person – but take other forms of travel money too.
These are cards that you load money onto and use like a chip-and-pin card. The great thing about them is that they aren’t linked to your bank, so you can’t spend more than you have – helping you to stay within your budget and limiting how much can be lost or stolen. Check different cards for monthly fees or ATM-withdrawal charges. Find more information and examples of different pre-paid travel cards here.
If you plan to use your normal debit or credit card, check whether there will be any overseas fees and let your provider know that you will be going abroad to avoid getting blocked for unusual activity.
To avoid the expensive exchange rates that come with Dynamic Currency Conversion. This also applies when withdrawing from an ATM. Visit the Post Office website for more information.
Most debit cards have some sort of non-sterling transaction fee, but some have big spending fees that can really add up. Check the conditions of your debit card carefully before using it abroad, or consider another method. MoneySavingExpert.com list some of the worst culprits and provide a tool to check your debit card here.
These are the most widely accepted type of card and can provide protection for payments between £100 and £30,000, as well as if the card is lost or stolen. Be sure to check for overseas fees, and don’t forget to pay off what you’ve spent at the end of the month.
The Money Advice Service breaks down the pros and cons of different forms of travel money here to help decide what’s best for you. Most importantly – enjoy your holiday!
This blog was written by Francesca, one of our Money Champions – follow her on Twitter and LinkedIn for more tips and updates.
Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money. If you have a question or need help, you can chat to them here.
