Going abroad can be expensive. Whether you’re travelling for work or leisure, the costs can rack up before you know it. If this sounds all too familiar, take a look at our top three money saving tips for travelling abroad.
- Use a Card with No Foreign Payment Fees
A lot of credit and debit cards apply fees for purchases made abroad. These can vary, typically between 1 and 3%. This can result in you paying a lot more than the ticket price, often between £1 and £1.50 extra for each purchase you make. In addition, many accounts charge you for withdrawing cash at ATM’s in foreign countries, so check out your account’s Ts&Cs before you travel. If you’re account does charge for these things, apply for an account that offers no fees. It could save you a lot of cash, especially if you’re away a lot!
- Pay in the Local Currency
If you’re making payments on your card while abroad, you’re often given the choice to pay either in pounds or the local currency. If you want to save money, then you should always choose to pay in the local currency. This is because your own bank will work out the currency conversion for you. Whereas if you opt to pay in pounds, the conversion is in the hands of the foreign bank. This could mean you end up paying a much higher rate, costing as much as £15 extra on a €100 purchase.
- Find Alternative Ways to Pay
There are lots of cost-effective ways to pay while you’re abroad, that many may not initially consider. For instance, you can now opt for pre-paid cards that you load with a set amount before you jet off. These are ideal if you want to set a strict budget while you’re away, as you can’t spend more than you have loaded on the card. Just make sure you choose one with no transaction charges!
No matter how you choose to pay while away, it’s worth setting yourself a budget before you set off. It can be easy to get carried away with spending abroad, especially when items are labelled in foreign currencies! Set yourself a spend limit for excursions, meals, shopping and anything else you may buy. By carefully budgeting, you are much less likely to spend beyond your means.
Now that you’ve sorted out your finances, you can enjoy your time away!
