Hot Tips for Saving Money on Summer Vacation | Merryn Talks Money

Avoiding Common Holiday Money Mistakes

• ✈️ Airport currency exchange is a significant penalty for disorganization, with airport kiosks offering much worse rates than ordering online in advance.
• 💡 For example, changing £1,000 at an airport kiosk could yield £944, while ordering online for airport pickup could yield £1,133, a difference of £189.
• 🥪 Bringing a packed lunch and a large bottle of water can save money, similar to how airport food and drinks are more expensive due to limited real estate.

Smart Card Usage for Travel

• 💳 Using a credit card to withdraw cash incurs extra fees from your bank, so it's advisable to use a debit card for any cash-related transactions.
• 🌍 Standard bank cards often charge non-sterling transaction fees of 2.5% to 3% on foreign currency purchases.
• 📱 Consider using online banks like Starling or specific travel cards like Revolut or Caxton FX, which often have better exchange rates and lower fees.
• 📊 Prepaying a travel card with expected holiday spending can help control your budget and track expenses.

Navigating Currency Exchange at Terminals

• ❓ When using a card terminal abroad, always choose to pay in the local currency, not sterling, to get the best exchange rate.
• ⚠️ Be aware that in some locations, staff might take your card and select the currency for you, potentially leading to unfavorable exchange rates.
• ⏳ Historically, traveler's checks were cumbersome and could be lost or stolen, making modern payment methods significantly easier.

Managing Leftover Foreign Currency

• 💰 Exchanging leftover foreign currency at the airport on your return journey typically results in a poor exchange rate, similar to when you bought it.
• 🔄 Some providers offer buyback guarantees, but these often come with charges or commissions.
• ✈️ A practical approach is to keep the currency for future trips, especially if it's a common currency like euros, or accept a small loss rather than a larger one on buyback.
• 💡 Alternatively, consider using it for duty-free purchases or donating it, though the latter might not be as straightforward as it seems.