Even your holidays can teach you about money
With the summer holidays coming up, some of you will likely be going away with your parents and potentially be allowed the freedom of spending abroad. With that freedom comes the responsibility of having to decide how you will spend your money. We’ve pulled together 4 reasons why you should plan your spending abroad.
Depending on where you are travelling, you will be using a different currency from the British Pound. This means you will have to exchange your spending money from pounds to the local currency.
Most parents will hopefully have done this before giving you your spending money. If not, they should be able to exchange the money at the airport. However, exchanging at the airport is usually not going to give holidaymakers the best exchange rate.
Your holiday spending money can be exchanged ahead of your holiday in a variety of places, both online and in person all with varying exchange rates and fees. That way you have the currency you need before you get to the airport or the country you’re going to.
But what if you don’t want to carry cash?
Britain is a cashless society but is it the same when you go overseas? The answer, depends on where you’re travelling. If you’re choosing to take your nimbl card abroad to withdraw money, we’d recommend looking into the country you’re travelling to and whether they have cash machines.
You should also look into if the country recommends carrying money as cash or on a card and if they accept the type of card you have.
Luckily nimbl is a Mastercard service so is able to be used worldwide. As long as there is a cash machine you should not have any issue withdrawing money. There would be a small fee of £1.50 for every cash withdrawal. With this being the case planning how you withdraw your money and when is key.
This video gives you an idea of what backpackers go through when travelling, how they plan their spending and the good rule of thumb for when you’re home or abroad “Don’t carry more than you’re willing to lose”.
How the local culture handles their money is also another thing to consider. Some countries prefer to have tips in cash, so it’s wise to still carry some of the local currency to not offend the locals.
The final reason you should plan your spending is the charges that can be incurred depending on how you choose to spend it. While most cards can be used overseas there is usually a charge with withdrawals and/or transactions.
With nimbl we charge a 2.95% fee for purchases made overseas so if you are using your card abroad, planning this into your budget will stop you from accidentally overspending.
So whether or not your parents include you in planning the holiday spending money (and we hope they do) at least now you’re a little more prepared for holiday.
If you need any additional guidance, take a look at TUI’s Travel Money section to find live rates and options.