Stop making these common money mistakes when traveling

So you finally have a holiday booked, but you need more than just an itinerary and a suitcase. Travel is expensive, so you need a financial plan to keep yourself from making money mistakes that could blow your holiday budget. From exchanging currency at the airport to not knowing how to tip at your destination, these are just some common money mistakes people make when traveling abroad.

Check out the gallery for mistakes you don't want to make. 

Not having a travel savings plan

Spending money first and paying off credit cards later is both expensive and stressful! Formulate a saving plan for your travel fund that works for you

Ignoring your data plan restrictions

Using your cell phone abroad can lead to huge charges. Before you go, look into your cell phone provider's international plan. Alternatively, you can also get a prepaid phone when you arrive at your destination.

Exchanging money at the airport

The exchange rates at airport kiosks tend to be quite high. It's best to go to a bank ATM as soon as you arrive at the destination to get some local cash. 

Incurring unnecessary ATM fees

Your bank can charge you high fees for every ATM withdrawal you make in a foreign country. Try to minimize the number of times you withdraw cash. You can also choose a bank and account type that doesn't charge this fee.

Carrying only one credit card

When it comes to technology, you never know when it's going to give you trouble, and this goes for credit cards. Having a back-up is essential.

Choosing the wrong rewards credit card

Depending on the credit card, you can earn a lot. It's worth choosing a card that's right for you and that will depend on your lifestyle. 

Ignoring the need for travel insurance

You never know what might happen on a trip or if you'll need to pay a visit to the hospital. Having travel insurance could end up saving you a small fortune, so don't travel without it. 

Forgetting about your bills back home

If you'll be traveling for weeks, make sure you take care of your bills before you go so you don't get hit with late payment fees. Consider automating your bill payments so you don't have to think about them.

Not knowing transport options

Research your transportation options ahead of time. For example, in big cities, you’ll want to avoid cabs and ride-shares that can add up quickly. Public transport can be faster as well as cheaper. 

Traveling without a plan to find freebies

There are many ways to enjoy free things as you travel. From free tours to free entrance to museums on specific days, keep an eye out for these before buying a ticket. 

Traveling without a budget

This is a common travel money mistake that will leave you behind with your finances, paying for the last trip rather than saving for the next one because you've overspent. 

Not understanding the exchange rate

It's easy to look up the exchange rate for your currency online. Then you can easily calculate costs in your head on the go. 

Not informing your bank and credit card company that you'll be traveling

Some banks still require this, some don't. To be on the safe side, make sure that your bank and credit card companies know where you're traveling so that they don't block your card. 

Choosing your home currency at check-out

When you pay with your card, you'll get the option of paying with your home currency or the local currency. Always choose theirs, as the conversion fee won't be as high. 

Incurring extra charges for your luggage

The terms and conditions regarding luggage are made very clear when you purchase your flight tickets. Make sure you're aware of them so you don't get stuck with unexpected fees.

Using your credit card to get cash

This one is a big no-no. Credit cards charge high interest rates that start accumulating immediately. When you buy things with a credit card the interest doesn't start accumulating until your next billing cycle.

Not checking the deals sites

Check out sites that offer great deals in your travel destination. You can find coupons and special deals to save money on local activities.

Not researching tipping practices for your destination

There are countries where tipping is expected and countries where it’s not done at all. Considering that tips are usually in the 15-20% range, not knowing tipping practices can cost you a lot. 

Neglecting the security of your cash and documents

Your cash and your documents are important. Always keep in mind a safety hierarchy that starts with yourself, your documents, your cash, and your stuff. 

Not knowing the hidden fees before you go

Hotels and airlines are notorious for fees. Keep that in mind when you plan your travel budget in order to avoid any costly surprises. Include all expenses when budgeting. 

Not understanding the cost of living at your destination

Your travel budget can get hit hard if you don't understand the cost of living at your destination. Research the economy of your destination before you go.

Not weighing accommodations options

While booking a hotel room may work for one or two people, it may make sense to look elsewhere if you have more in your group. For example, a vacation rental for larger groups and families could make more financial sense. 

Using a credit card with a foreign transaction fee

Foreign transaction fees can be as high as three percent on everything you buy in a foreign currency. Fortunately, there are cards with no foreign transaction fees. 

Using public Wi-Fi without a VPN

Even if you have to enter a password to get into the hotel or coffee shop Wi-Fi, it's still public. You can still be hacked by anyone else using that password. Use A VPN before doing so. 

Paying too much for airport lounge access

Sure, it's nice to avoid crowds and relax at an airport lounge. But if you haven't racked up sufficient frequent flyer miles to get free lounge access, it can get pricey. 

Reacting when you see a sign about pickpockets

When you see a sign indicating that pickpockets frequent your location, don't check to see if your wallet is safe. Pickpockets hang around such signs to learn where people keep their wallets.

Overspending on groceries

You might think it will be cheaper to buy groceries and cook at your vacation rental, but that’s not always the case. In some areas, grocery stores may charge a lot for basic items. Meanwhile, some destinations have some great cheap eateries worth testing out. 

Getting scammed with holiday deals

Some deals can sound too good to be true. To avoid getting scammed, do some thorough research by checking reviews to see if it's a genuine company.