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How to spend your money when travelling

  • Written by News Company


When you’re on holiday, it’s likely you’re going to want to spend your money on all sorts of different things – from great food and wine, to souvenirs and gifts to bring home. But what’s the best way to spend your money? Should you take cash or spend exclusively on your credit card?

Here are some of the pros and cons of each method of spending so you can figure out the best option for you:

  • Cash: remember the saying that ‘cash is king’? Well, it seems to be true pretty much all over the world. Everywhere will accept cash and many countries without advanced technology may only accept cash so it’s always useful to have a small amount on you even if you don’t want to carry around large amount. When withdrawing cash, avoid cash points which charge you a high fee and look for the best exchange rate at different bureau de changes around the area if you can.
  • Prepaid travel money cards: this is a great way of avoiding the fees that are often connected to withdrawing money on a regular debit card when you are overseas. A pre paid travel money card will allow you to ‘load up’ a card with Australian dollars but use it as a foreign currency with a specific exchange rate. Just check that you’re getting a good rate though as travellers often complain of being short changed by banks on this.
  • Credit cards: these are a popular option for Australians travelling abroad although the benefits they offer when you’re overseas vary dramatically between providers. Find the right credit card and you could make huge savings or gains such as frequent flyer miles or reductions on car insurance. One of the drawbacks of credit cards though is that they may not be accepted everywhere you go – especially in smaller countries within Africa and Asia.
  • Travellers cheques: this method of taking your money overseas is becoming less and less common but the truth is that travellers cheques still exist and can be used. The drawback to these is that they must be cashed in at an overseas bank and the process to actually extract your money can be quite lengthy compared to other options. Consider travellers cheques if you are going to a dangerous country where you do not want to be carrying around large sums of money, or keep them for emergency situations only.

Travelling to other countries is a luxury and you’ll want to enjoy every minute of it. Don’t spend your holiday worrying about how to spend your money in the right way – research the various methods beforehand to make sure you make the best choices for you.

 

Article provided by Positive Lending Solutions

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