6 dos and don’ts to keep your holiday spending in check this summer

Many holidaymakers are excitedly gearing up for what may be their first trip abroad for a while this summer.

But with rising prices and the cost of living crisis putting pressure on incomes, it will be particularly important for travellers to keep a tight grip on their holiday budgets this year.

Nearly a quarter (24%) of those planning trips abroad say they’ll be cutting their holiday budget because they have less money to spend, rising to more than three in 10 (31%) families who are jetting off on trips, according to recent research from Post Office Travel Money.

This may be easier said than done, however. Seven in 10 (70%) people who set a spending budget on their last overseas holiday admit they ended up busting it, the survey also found.

To help you keep costs down and stick to your holiday budget, James Lynn, founder and CEO of travel debit card Currensea.com, shares some dos and don’ts…

1. DON’T leave it until you get to the airport to buy your travel money

Lynn says that on top of potentially getting poorer rates, service fees may also be added: “So your budget will take a big hit before you even leave the country.”

2. DO be cautious about ‘0% commission’ adverts

“Many providers will waive commission because they know they can bake a bigger profit into their exchange rate instead,” cautions Lynn. “Worryingly, our research has highlighted that nearly a quarter (22%) of people wrongly believe that 0% commission means you get the best rate possible.”

3. DON’T leave money on pre-paid cards

“We found that, on average, £55 remains unspent on pre-paid travel cards, with the figure rising to £96 for more frequent travellers,” notes Lynn.

4. DO consider paying in the local currency when abroad

“If you are given the option of paying – or withdrawing cash – in pounds rather than the local currency, be sure to say no.

“If you pay in pounds, this will allow the merchant or provider you are dealing with to decide the exchange rate – and it’s unlikely to be in your favour,” says Lynn. “We found that over half (55%) of people are still unaware that choosing to pay in Sterling when overseas can result in a much worse rate.”

5. DON’T forget about any potential fees for withdrawing cash at overseas ATMs

Lynn cautions: “Many people still use cash for all their holiday spending and besides the obvious security risk if they run out of money, they also risk facing high fees from withdrawing cash from overseas ATMs.”

Some cards have no fees for overseas withdrawals.

6. DO consider a card designed for travel

There are many options here so it’s worth comparing deals. Currensea, for example, is a travel debit card that allows people to spend directly from their existing current account when abroad. Travel debit and credit cards are available from various providers.