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Managing your money well on holiday

Friday 29th May, 2026

 

Perhaps you are looking forward to a trip overseas this year?  Maybe a staycation closer to home, camping trip or city break is more your thing.

Whatever you have in mind, it’s important to organise your holiday finances just as thoroughly as you plan which clothes to pack and where to stay.  Some forward planning can help to keep the cost down as well as protect you from theft and scams.

 

Set a realistic budget

We all want to enjoy ourselves on holiday and often spend a bit more than usual.  Take time to work out a sensible budget before you go, and stick to it, so that you aren’t left counting the cost for many months afterwards.

Make a list of things you will have to spend money on, such as food, drink, transport, extra sun cream and souvenirs, and then set a top limit for your spending.  Divide your budget by the number of days you’ll be away to give you an idea how much you can afford to spend each day.  Money management apps can help you track your spending using your smartphone.

 

Check before you go

Find out if your travel insurance includes adequate health cover to save yourself a big medical bill if you need treatment for illness or have an accident. And before taking your car abroad, check with your insurer that your motor insurance is valid for the countries you plan to visit.

If travelling in Europe, be wary of mobile roaming charges.  Since Brexit, some providers have reintroduced them.  Check before you go whether yours has ‘inclusive EU roaming’.  If you have good wi-fi connection, you could use WhatsApp to make free calls.

Check your bank's guidance before travelling. Many providers no longer require travel notifications, but it's worth ensuring your contact details are up to date and that you can access your banking app while abroad. Only take cards that you intend to use on holiday. Leave others in a secure place at home.  Check whether cashpoints are widely available at your destination and whether your hotel or rental car agency accepts credit cards.

You can get helpful advice about visiting over 200 different countries, including the latest safety, security, health, entry requirements and travel advice from the Government's foreign travel advice website.  Simply enter the country you plan to visit.

 

Sort your cards and currency

Nowadays most people opt to use a debit or credit card for major spending abroad, as it’s quick and convenient, and avoids carrying large amounts of currency.  But it pays to choose your payment card carefully.  Some providers offer cards with no foreign transaction fees for spending abroad, while some don’t charge for cash withdrawals within certain limits.  The MoneySavingExpert has an online guide.

Many travellers now use mobile wallets such as Apple Pay and Google Pay for everyday purchases abroad. They can be a secure alternative to carrying physical cards, allowing you to make contactless payments using your smartphone or smartwatch. However, it's sensible to carry at least one physical debit or credit card as a backup, as not all retailers accept mobile payments and your phone could be lost, damaged or run out of battery.

Alternatively, take a multi-currency prepaid travel card. These are cards that you load money onto and use like a payment card. As they aren’t linked to your bank, you can’t spend more than you have – helping you to stay within budget and limiting how much can be lost or stolen. There are no credit checks and your exchange rate is ‘locked in’ before you travel. Check different cards for monthly fees and ATM-withdrawal charges.

You’ll still need a small amount of foreign currency to pay for items like taxis, food and service tips and when cards aren’t accepted.  Find the best currency exchange rates and buy online before you go. Some specialist providers deliver money to your home or to a ‘click and collect’ store.  The MSE exchange rate tool will help you find the best place to get holiday currency wherever you live. Just put in how much you need, where you are going and your postcode.  Don’t buy foreign currency at the airport.  It is likely to offer you a much worse exchange rate.

It’s not wise to rely on cash alone as, if it gets stolen, you’re stuck! Keep a moderate amount of currency somewhere secure – maybe some in the hotel safe and some on your person – but take other payment facilities too.

 

While you are away

When paying with your card, always opt to pay in the local currency, as there is likely to be an extra mark up if you pay in sterling.  Check the terminal to make sure – you should always be able to choose the currency in which you want to pay.

The advantage of using a credit card for purchases is that payments over £100 are covered by consumer protection law if there is a problem, as well as if the card is lost or stolen. But avoid using your credit card to withdraw cash - a fee and interest will be added. 

It’s easy to be tempted by in-store duty-free offers, but remember they are not always cheaper.  Beauty items and cosmetics may offer good deals but alcohol, accessories and electronics are often the same as online, or even more expensive.

 

Take care of your cards

Losing your cards, or having them stolen, is a huge inconvenience. Even more so when you’re on holiday. Here’s some simple tips to guard against theft:

• Your card and card details are as valuable to a fraudster as cash. When paying don’t let your card out of your sight and carefully dispose of any receipts or statements with your details on.
• Memorise your PIN. Never write it down or give it to anyone even if they claim to be from the police or your bank. At most UK cash machines you can change your PIN to something you can easily remember.
• Consider setting up a mobile wallet before you travel. It can reduce the need to carry multiple cards and allows you to continue making payments if a physical card is temporarily unavailable. Make sure your device is protected with a PIN, fingerprint or facial recognition.
• If driving on holiday, keep handbags and wallets out of sight of sneak thieves – especially in slow moving traffic. Always remove plastic cards and other valuables from parked cars.
• When wearing light summer clothing it’s harder to conceal wallets. A concealed money belt is an ideal way to carry cards and valuables.

 

When you return:

After time away, check your bank or card statement carefully for unfamiliar transactions.  If you’ve used your credit card, check for overseas fees and don’t forget to pay off what you’ve spent at the end of the month if you want to avoid interest charges.

Have a great holiday!

 

 

 

 

This article is for general information only and does not constitute financial, legal, or any other form of advice.

Written by JES - June 2023,  Updated by MJ - May 2026

 

 

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