It can be easy to budget your travel money when you understand which currency to use and how you can get the best exchange deal. This guide will help give you the basics that you need to know about travel money.
What is travel money?
Travel money is the currency you use to pay for services or products overseas instead of your pound sterling.
The currency you need
The currency that you need will depend on your country of destination. Some countries share their currency with other nations while most have their own.
Countries like Mexico also use other currencies unofficially where US Dollar is oftentimes acknowledged along with Mexican Peso.
You can also check our guide on: Euro Exchange Rates
What is Exchange Rate?
Exchange rate shows you how much foreign money you’ll get when converting your existing currency.
For instance, if pound sterling to the euro exchange rate is 1.37, you’ll get 1.37 euro for every pound you exchange. This rate can vary from one company to the other. So, it would benefit you if you compare holiday travel money exchange rates. This can help you get the most out of your travel money.
Additionally, some travel money providers will offer a good rate when buying a large amount of foreign currency. This can be a huge difference when exchanging a lump sum of money.
Read our guide on how you can get the best deal on travel money.
How much travel money you need to take?
The amount of travel money that you need to rake will depend on your itinerary and duration of stay.
You can set a budget on how much will it costs you and set aside an additional 10% budget for emergencies. You can consider budgeting for the following expenses:
• Food and drinks
• Travel between cities
• Activities, events, entertainment, shopping
• Emergency costs
You have to make a list of the possible expenses and anticipate possible costs that may occur while you’re abroad.
How much travel money you can buy at once?
The amount of foreign currency that you can buy depends on the provider since each company has its own standard on how much you can order.
Though you might not plan to take a lump sum of money on your trip overseas, you must be cautious on cash restrictions when taking money outside or back to the UK.
For instance, taking more than a sum corresponding to €10,000 from the UK to a non-EU country should be declared to customs. Otherwise, you’re money will be at risks of being confiscated. You can find out more details by visiting the Gov.UK website.
Where can I buy travel money?
You can search online for travel money providers that lets you order currency and deliver it right to your doorstep.
Bureau de change
You can also go to high street travel money companies or at the airport to exchange your pound sterling into your preferred foreign currency.
Through your debit or credit card, you can withdraw money abroad at the ATMs. These can be costly as it carried charges for foreign usage.
Travel Money Card
You can also secure prepaid travel cards online or in-store. Simply load the card with pounds sterling and withdraw foreign currency when you’re overseas. You must also check with your provider if your prepaid travel cards suit the type of currency that you need.
Buying travel money at the airport?
Buying foreign currency at the airport can be pricey. It can cost as much as buying it from the high street or can even be more expensive.
If the only option left is buying it from the airport, you might consider buying it online through preorder to get a good deal and picking it up in the airport.