Money mistakes to avoid while travelling

Even the most experienced travellers are guilty of financial blunders from time to time. Make the most of your trip by avoiding these common money mistakes.

When planning an overseas trip the first thing that might come to mind is getting the best air deals and top accommodation. But there are a few other things you should put on your to do list to ensure your trip is as smooth as possible.

Bessie Hassan, money expert at Finder.com.au runs us through some of the top travel money mistakes and how you can avoid them:

1. Only having one travel money option

The last thing you want while overseas is limited access to cash, and as any seasoned traveller knows, things don’t always go according to plan. Stolen wallets, blocked accounts and misplaced credit cards can all occur on holidays. Without a back-up option, this can leave you stranded.

Aim to take at least two different cards with you. This could include a suitable money card as well as a debit or credit card for emergencies. It’s worth keeping some cash on hand as well. Not all vendors accept cards and it’s wise to be prepared.

2. Exchanging money at the airport

Airports are notorious for having poor foreign exchange rates. They also offer a limited number of exchange services. Plus they’ll usually sting you with a hefty conversion fee as well.

You’re better off exchanging currency once you get to your destination. If you do need to convert some cash to cover things like a cab fare upon arrival, only convert a small amount and do so before you head to the airport.

3. Not reloading your travel money card in time

If you add funds to your travel money card, they can take several business days to clear. Bank transfers may take up to two business days, while BPAY payments can take up to three business days. If you wait until your balance is close to zero before reloading, you may end up stuck with your cash in limbo.

To prevent this, keep track of your balance through your online account. Make sure you always have enough funds to last at least two to three days. Ask your travel money provider if instant transfer options are available.

4. Using global roaming on your mobile phone

Each year, millions of Aussies get stung by global roaming charges while overseas. You have four main options when it comes to mobile usage overseas:

• Purchase a travel SIM. This is a good option if you’ll be travelling to multiple countries, and you can recharge online. You’ll need to purchase the SIM prior to your trip, so make sure you leave enough time.
• Buy a travel pack from your carrier. Depending on your telco provider, you might be able to add a travel pack to your current plan. These will usually cost around $5-$10 per day on average.
• Pick up a SIM on arrival. This is the cheapest option. You won’t be able to use your Australian number, but you can access the local network at a lower price.

5. Failing to take out travel insurance

In a perfect world, nothing would go wrong on holidays. But an overnight hospital stay can end up costing a lot more than your hotel room. While you can’t predict the future, you can make sure you’re protected through travel insurance. Policies vary between providers, but there are three main needs that travel insurance covers:

• Medical and hospital. This will cover the cost of overseas hospital stays, medical treatment or emergency evacuations.
• Trip cancellation. If you’re unable to travel for reasons beyond your control, your insurer will reimburse you.
• Baggage. This will cover you if your luggage is lost or stolen.

It’s important to factor travel insurance into your budget when planning for a holiday. The ability to save yourself thousands of dollars if something unexpected were to happen is priceless. As with any insurance policy, always check the fine print before signing up.

With your cash, insurance and phone plan sorted, you can kick back, relax and enjoy that well-deserved cocktail.