You might consider yourself a seasoned traveller, somebody who obsessively plans holidays down to fanatically pinned maps and destination-appropriate music playlists. Even the world’s most intrepid traveller can be a victim of poor money management.
You could lose money by making simple mistakes like not knowing the current exchange rates, or pressing on the wrong currency on an international ATM. Instead of spending that cash on a nicer hotel room, you might want to upgrade your beer with a fancy martini.
Using the right bank card and maximising rewards are the keys to a stress-free trip.
The right plastic pack
It’s all too easy when sitting on the beach, piña colada in hand, to forget that every time you tap your debit card on that contactless terminal, you could be charged between 2.75% and 2.99% Depending on the card provider, the value of your transaction will vary. You’ll end up with a huge bill at the end of your holiday if you buy every coffee, snack and bus trip.
What is the best option? The best option is to switch to a credit card that does not charge fees, such as Barclaycard Rewards card*, which is 100% fee-free for purchases and ATM withdrawals.
*Representative example. Purchase rate: 28.9% per annum. (variable); based on a £1,200 credit limit. Your application approval and the terms offered to you will depend on your financial situation and borrowing history. Rates of interest may vary from those displayed. T&Cs apply.
How to protect yourself from fraud
People need to relax during the holidays. Their USP is that they relax people. They offer a guard-lowering calm, making us brave enough to Macarena away until the small hours – but this also means we may share bank details over unsecured networks in hotel lobbies, or fail to notice somebody hovering over our shoulder, quietly taking down our card details.
Barclays provides peace of Mind. fraud protection Systems are available 24/7 to safeguard your account. You’ll receive an alert if they notice anything suspicious.
You can also freeze your card in the app if it is lost or stolen so that no one can use it before you locate it. Barclays will also send you emergency cash within three days if you report the loss or theft of your card while abroad. Barclays will also send you a replacement card.
Set up a daily budget
Ah, that awful B-word. You’ll have more money at the end of your vacation if you allocate yourself a daily allowance. To get a rough estimate, add 30% to the cost of food, transport, accommodation and activities. Divide it by the number travel days in order to get a daily budget.
If you want to save money, consider skipping the lunch hour by eating the breakfast at your hotel, searching for street food or using social media and reviews to find restaurants in backstreets far from the tourist areas. This will reduce your bill while giving you a more authentic experience.
Set up a budgeting system to help you manage your finances like a professional. savings goal1 Then, you can get in touch with us. Barclays app1You can also turn on the Spending Alert to keep track of your account at all times.
Foreign transaction fees: How to avoid them
It is rare to go on a foreign holiday without some local currency. The charges for international ATMs are often astronomical: up to ten times the amount of local currency. £14.95 when taking out £250 on your credit card, according a comparison site. (Tip: Always select “without converting”).
With a fee-free credit card like the Barclaycard Rewards credit card*, where ATM withdrawals can be made without any extra fees.
Don’t wait until the very last minute to purchase foreign currency at an airport bureau of change. These “walk-up” exchange rates are often on the expensive side. Ordering the money online from your bank will give you a much better rate. Plus – if they’re like Barclays – the cash could be delivered to your home free of charge2 too.
*Representative example: 28.9% APR Purchase rate: 28.9% per annum. (variable); based on a £1,200 credit limit. Approval of your request depends on the financial status and history of borrowing, as do any terms that may be offered. Rates of interest may vary from those displayed. T&Cs apply.
Currency Choices: Make Smart Decisions
We’ve all been in this situation on vacation. After dinner, a waiter comes up with a card reader and asks, “Would you like to pay in pounds or local currency?”
In general, it is best to withdraw or pay in local currency as your UK bank will determine the exchange rate. Opt to pay in pounds and the local bank will do the conversion – usually at less favourable rates.
5 Invest in travel Insurance
Travel insurance is a good idea. We’ve heard horror stories of British tourists who didn’t get it and then paid thousands of pounds to fly home with medical assistance.It’s not fun to search through a plethora of comparison websites in order to find the best quote.
Experts are often the best source of information. The Barclays Travel Plus Pack3 (£22.50 a month) was named a Which? Best Buy travel insurance for June 2024. The policy was lauded for its £10,000 missed departure cover and being one of the few policies to cover pandemics.
Check the fine print. Some policies exclude children and pre-existing conditions, while others will not cover extreme sports like bungee jumps, parkours or tightrope walking.
Take advantage of the technology at your fingertips
You may be considering a trip to the EU and US this summer. You should consider Barclays travel wallet4 You can access the website via Barclays app5), which enables you to buy Euros and US dollars before travelling – which you can then spend with your regular debit card while away. You can enjoy free transactions on your trip because you have already purchased the currencies.6.
Barclays will purchase any leftover foreign currency at 0% commission.
Barclays Travel Finance: To learn more, visit barclays.co.uk/travel/
Barclaycard and Barclays account holders must be 16 years old or older, possess a valid mobile number, and have an active Barclays or Barclaycard card. Terms and conditions apply.
2 £2,500 is the maximum amount that can be ordered and delivered to an individual residential address in a 90-day period. Please note, you cannot exceed £5,000 per person within a 90-day period.
3 The terms and conditions, exclusions as well as eligibility criteria will apply. You must have a Barclays current account, be 18 or over and hold this product for at least six months from the date of purchase – then you can cancel at any time.
4 T&Cs apply. You must be at least 16 years old to use the app to access this service or product.
App requires a minimum age of 11 years old. T&Cs apply.
You will not be charged any transaction fees when you pay with Euros and US Dollars in your travel wallet. A margin of 2.75% will be applied to the purchase of your currency. You will be charged a transaction charge if you use your debit card to pay in British Pounds while abroad.
