Saving Money When Spending Abroad
Spending money abroad is something we all do when we go on holiday, whether it is for food, for drinks, for activities or even for that one specific treat you have wanted for as long as you can remember! It is something which you have to do to when you’re away to enable to have a good time.
So, if spending money abroad is inevitable, saving money must be something that we all would like some tips on.
Spending Abroad: Problems & Solutions:
Holidays can be very expensive, especially if you’re travelling in the school holidays. But, we have put together a list of problems and solutions for you to ensure you can save as much money as possible.
Problem: Foreign Transaction Fee’s
We all know about the unfortunate foreign transaction fee’s (charges the bank gives us when we spend money on our cards abroad) that sneak back upon us after we return back from an enjoyable holiday. They always manage to bring us back to reality. A foreign transaction fee is a charge of usually 3% and is a common fee that most large banks and payment networks use when people pay using a credit or debit card abroad.
Solution: Travel Cards
There are plenty of travel cards available to help you save money when you’re abroad. They are specially made to make sure that you don’t spend unnecessary money whilst on holiday. They usually get rid of the foreign transaction fee. This means that when you pay for things using the travel card or withdraw money from a cash machine, you won’t get charged.
Problem: Treating yourself
The idea of ‘i’m on holiday I should treat myself’ is a great idea but, if you can’t afford it, maybe you should rethink it. The last thing you want to do is come back from a holiday worrying about the fact you have spent too much money.
Solution: Budget with Your Spends
To ease yourself of how the money you may be spending, try putting your money in envelopes to keep on track of how much money you’re intending on spending per day. If you know you want to spend more one day, work it out.
Problem: Using your card for everything
The major banks which will come to your mind right now will probably be charging you a fee of around 2.99% per foreign transaction. So, if you think about it, that slice of pizza, the small drink and them two ice creams aren’t actually as cheap as you thought they were going to be.
Along with this, the fee applies when withdrawing cash from a cash machine, but as well as that fee, you may be charged by the ATM itself for using it! This could be up to £5.
Solution: Take cash with you
Instead of depending on your cards whilst abroad, why not consider taking out your holiday money before you leave? Exchanging your money into Euros, Dollars, Pesos etc, is easy enough and has some good rates. However, if the country your visiting has a closed currency then you may need to use your card on holiday to exchange but take enough cash out so it’s only once.
Problem: Eating out for every meal
Eating out every day for breakfast, lunch and dinner can be a very pricey experience. It is not something which everyone’s bank account could agree with. It could get even worse if you are travelling as a family as you could end up spending hundreds of pounds (the equivalent of the currency of your location) each day.
Solution: Deals on meals or cook
Trying to get the best deals possible when visiting abroad can be difficult, especially if your end destination is a location which uses a different language to you. But, don’t worry, there are always people to help you, whether it be the staff or a holiday representative.
Holiday representatives usually either stay in the same hotel or visit your hotel once or twice a day. They are there to help you during your holiday and give you the best experience. Usually, they can give you the best tips and advice on where to eat, where the best deals are and where to visit. You could even take a trip to the local supermarket and get some food which you could cook yourself.
Problem: Last Minute Booking
Last-minute booking, whether it be of hotels, transport or even activities will be a lot more money for you to pay compared to if you had booked previously.
Solution: Book everything you can in advance
Booking what you can in advance is usually the best option for you when it comes to saving money. If you decide to book activities on the day you want to participate it can be more expensive than if you booked months in advance.
Here at BingoLoans, we understand that saving money abroad might be difficult, especially if you’re one of those people who loves splashing the cash. But, make sure you can afford to spend what you are. The last thing you want is to end up in a difficult financial position.