Three ways to avoid overspending on holidays, according to the experts
EXPERTS have warned jet setters over the common mistakes people make when managing their finances abroad.
Too many travellers often fall into the trap of “overspending on vacation” according to financial experts.
Courtney Alev, a consumer financial advocate, told HuffPost: “Vacations are meant to be enjoyed, but spending recklessly while away can have lasting consequences on your financial standing.”
To help travellers save money on holiday Alev and other financial experts have shared their top tips.
RESIST PEER PRESSURE
More than a third of millennials and Gen Zers have a friend who encourages them to overspend, according to a 2023 survey from Credit Karma.
Childhood experience and social media can also put a strain on travellers to spend more on their holidays, the experts claim.
You see other people on your feed having lavish vacation experiences and want to ‘keep up.’
Stephanie Zepeda
The best way to manage this is to speak with your travel partner and understand what your budgets are going to be, says Alev.
He added: “Knowing what each of you is comfortable spending can prevent awkwardness or resentment, and make your vacation more fun.”
SET A BUDGET
Not planning properly is the most common reason for travellers overspending on their holidays, the experts say.
Andrea Woroch, a consumer finance and budgeting expert said: “Daily meals out, snacks and drinks on the go, transportation to and from activities and little souvenirs here and there add up fast and can send you way over budget.”
Woroch recommends travellers look at ways they can cut expenses without sacrificing the joy of vacation.
“This could mean finding a hotel that offers free breakfast or one that comes with a mini kitchenette so you can prep some of your own meals,” Woroch said.
Finding free transport can greatly reduce the cost of sightseeing and free up funds for travellers to spend on other activities.
One expert admitted the “idea of a vacation budget can sound limiting”.
However, it allows people to spend more money on things they want to indulge in and is “still a way to enjoy your vacation without the guilt or worry about spending too much money”.
USE CASH
Experts recommend using cash as a way to resist overspending on your next big getaway,
Taking out a set amount each day to cover your planned expenses is a great way to budget for the trip.
Kara Stevens, an author and founder of The Frugal Feminista said: “Reliance on credit cards, often due to the convenience they offer during travel, can lead to overspending without an immediate awareness of the financial impact.”
When using cash abroad don’t forget about local currency exchanges.
“Exchange rates change daily, and depending on the difference, you may spend more than you intended,” an expert said.
Getting money from a local bank or ATM is usually cheaper than doing it at the airport and travellers should check with their bank before their trip to find out about any extra fees they might charge.
It comes after a mum revealed her top ten tips on how parents can enjoy the summer holidays for free.
And travel experts share 11 ways to make the holidays cheaper this summer.
How to avoid overspening on holiday
- Resist peer pressure
- Discuss priorities ahead of time
- Set a budget – and stick to it
- Create an itinerary
- Look out for hidden fees
- Don’t forget about local currency exchanges
- Create a vacation savings fund
- Use cash
- Make a separate spending account
- Make use of travel reward cards