Spend Thrift - Foreign Exchange,
Commission and Card Savings Wise 



  Spend thrift ways to spend your money abroad while saving on card, traveller’s check and currency charges.

You need to maximize your potential to take cheap holidays abroad by being informed about the costs and savings  associated with the medium you intend spending and funding your lifestyle travelling.

A little bit of financial knowledge can go a long way in your quest for holiday saving tips in pursuit of cheap family vacations.


Spend Thrift

Traveller’s Checks

  • Confirm first that overseas banks accept them?
  • They are expensive and labor intensive to process so only a few banks still accept them.
  • Most issuers only offer traveller’s check in a few limited currencies.
  • You will need to have them issued in the currency of the country that you intend visiting.
  • You will pay about 2% in commission initially when the traveller’s checks are issued to you.
  • Don’t convert them into the foreign currency overseas as you’ll pay an additional exchange commission abroad.
  • Your unused traveller’s checks can be bought back for free or kept for future lifestyle travelling as they don’t expire.

 

Foreign Currency

  • You will require some cash for your cheap holidays abroad but keep it to a small amount and request smaller denominations.
  • Excess cash is a safety risk and you will pay commission again when convert unused cash back upon your return.
  • Aim to purchase your currency in advance in order to pay lower commissions
  • You can also potentially save 505 in commissions by collecting your foreign currency from a forex branch instead of the last minute rush at an airport or a vacation resort.
  • Don’t purchase them using a credit card. You will forfeit the interest-free period as the transaction is seen as a cash withdrawal and you are charged a higher interest rate.
  • Time constraints can be alleviated (at a cost) by reserving your currency online for the same-day airport collection- generally only in euros and dollars though.

 

Credit Card

  • Excellent for emergencies because of he spend now and pay later options
  • However interest charged is expensive.
  • Be diligent and committed to clearing your monthly balance to keep your holiday costs as low as possible.
  • You will be charged interest immediately if you use your credit card at an ATM to withdraw cash.
  • Invest in lost card protection to insure you against any purchases that are made on your card if it is lost or stolen.
  • Remember to report your lost / stolen car immediately and be aware that pin based purchases are not included in this cover.
  • Always remember to be vigilant about fraud by keeping your card in your sight at all times and your PIN number a secret at all times.
  • Keep the card’s lost or stolen reporting contact details at hand at all times.

 

Pre-Paid Currency Cards

  • They are only offered in some currencies but they afford you more safety than cash and the rates of exchange are preferable.
  • Pre-load you card when exchange rates are optimal with the currency that you require for your lifestyle travelling.
  • Use your pre-paid card extensively, except for cash withdrawals, to make the most of the “no purchase fees” advantage.
  • Make sure it is PIN protected and keep your card separately so that you still have access to funds if say your credit card or cash is stolen.



Debit Cards

  • They are expedient but expensive.
  • No forward planning is required but charges for loading foreign currency are high.
  • You should also be aware that you will pay a commission on all transactions made abroad.
  • Debit cards should be retained for emergencies only and never pay in your local currency – convert your destination’s currency instead. 


Another spend thrift free trip planner tip is to not to pay for your accommodation with cash – you will want the payment to be traceable.

Always retain the proof of payment so that any disputes can be easily settled.

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