Wondering what to do with your long summer holiday? Travelling long-haul might seem more expensive but heading out of the eurozone can be better value for money for school-leavers and students heading overseas.
Student summer holidays are long, with many getting up to four months down time between the end of term in May and Autumn term in October.
So, whether its work or play, thousands of school leavers and students will be planning a trip overseas to make the most of this time off.
But with budgets still tight, those looking to travel need to think carefully about their choice of destination, as well as their holiday spending, to ensure their money stretches as far as it can.
Pick a good value destination
Europe may seem an obvious choice for those looking to take a short break.
However, the poor value of the pound against the euro is taking its toll, making day-to-day costs in the traditional holiday resorts across Europe much more pricey compared to non-euro destinations.
As a result, school leavers and students in search of value will be better off looking outside the Eurozone this summer, as they will see their money go further in Turkey, Croatia and Egypt as well as North America and Asia, according to currency specialist the International Currency Exchange (ICE).
Plan your travel money
Having picked your destination, you then need to organise your holiday spending.
While it’s easy to leave this until the very last minute, if you turn up on spec and buy at the airport bureau de change, you will end up paying over the odds as airport charges are variable and do not offer the best value.
The good news is, there are now a whole host of outlets selling currency, including banks, the Post Office, Marks & Spencer and Sainsbury’s.
Further, as the best rates can generally be found online, it’s worth ordering your currency from the likes of ICE or Travelex, and getting it delivered free of charge to your home the next day.
Do your research
When buying currency, you need to shop around, checking the small print and doing your sums, including any handling charges and delivery fees.
The main factor to consider is just how many euros, dollars or rand and so on you will get for each pound.
Choose a prepaid card
If you want to lock into a favourable exchange rate, you can do this by opting for a prepaid card from a provider such as CaxtonFX or FairFX.
These cards offer the same rates of exchange as buying currency, and can often be obtained without paying any commission.
They are available in a range of currencies, and can be used to withdraw money from a cash machine, or to make purchases from retailers using your Pin.
You will not be charged fees for most transactions, plus if you lose your card, you can be safe in the knowledge all the funds on your card are protected.
Further, unlike a credit card, a prepaid card can only be used against preloaded funds, ensuring your holiday spend will stay within your budget.
Play your cards right
If you do decide to use your debit and credit cards to make purchases or withdrawals while you’re away, it’s easy to get stung by “loading fees” and “handling fees” – so try to avoid making multiple transactions.
Equally, some cards are better than others because they do not levy these fees.
The best cards for foreign spending include Santander Zero, the Halifax Clarity, and the Saga Platinum; Nationwide’s debit card is also free in most European countries.
Finally, while some retailers will offer you the chance of paying on your credit or debit card in sterling, by converting the price of the purchase from the domestic currency, you should reject this.
The practice is called dynamic currency conversion, and means the shop will apply its own conversion rate, based on unfavourable margins which could leave you out of pocket.
Always insist on paying in the local currency.
