The holidays are almost here. With all the excitement and anticipation it is so easy for your expenses to spiral out of control. Here are a few tips to manage your holiday finances and still have lots of fun.
Plan Ahead
By booking early, there is time to shop around for the best deals on fares, accommodation and tour packages. If your plans aren’t already in place, you will have little flexibility and will have to accept whatever is available. Last minute bookings can cost you much more than if you had booked weeks, if not months in advance. This can get really expensive particularly for a large family.
Air miles are useful in offsetting some of your ticket or accommodation costs. However, the best value from your air miles is usually during off-peak seasons when demand is low. It will be a challenge to find air mile tickets for travel now.
Draw up a holiday budget, and stick to it
You do not have to travel to an expensive and exotic location just because “everyone else” is doing so. Set an overall spending limit involving your family and try to stick to this. You will need to budget for the various aspects of holiday spending including accommodation, transport fares, food, shopping, entertainment, gifts, tours and so on. Vacation jobs provide good earning lessons for children. They might work for part of the holiday and save some their earnings for their holiday shopping. Avoid borrowing to finance a holiday unless there is some certainty of an impending inflow of funds or other compelling reason to do so.
Credit cards, debit cards or cash?
If you plan to use your cards whilst you are away, notify your bank or card company; as an added security precaution, many card providers look out for “suspicious” activity. If they see your card being heavily used particularly in what is an unusual environment for you, your account may be suspended until they have heard from you to confirm that it is indeed you using the card.
As far as possible use your debit card for withdrawals at ATMs during bank opening hours. Always hold some cash just in case your card is lost, stolen or fails to work. You can also make payments and transfers out of your account from online banking solutions if you have this in place.
Foreign Exchange
Licensed bureau de changes are usually available at airports; this is very convenient particularly when you arrive, but they tend not to be as competitive as those in town. Look out for the commission charge and the exchange rate offered. Do a quick calculation of how much you will get in exchange for your currency, to make sure it meets your expectations. Be cautious when you patronize moneychangers, as there is the risk of being shortchanged or sold counterfeit money.
Book a car before you go
Try to book your car ahead of your departure as picking one up on arrival is usually more expensive. If you require a self-drive car rental, read through the terms and conditions including the insurance terms. Be particularly cautious of opportunistic “taxi drivers” who beckon as you step out of the arrivals hall in airports all over the world; they are looking to make money from unsuspecting tourists and visitors and often charge exorbitant rates. Approach an official taxi rank if you haven’t booked a car in advance, and always ensure that you are getting into a licensed taxi.
Beware of roaming charges!
The new-generation smart phones such as the I-phone, Samsung and BlackBerry provide us with instant access to emails and the internet, a world of shopping, and social networking applications just a touch away. We thus unwittingly leave ourselves open to international roaming charges on our smart phones as soon as we switch them on. The continuous activity utilizes data bandwidth, leading to constant charging and a shocking bill when you return home.
Fortunately, smart phones have a range of options and you can choose which services to switch off. After disabling data services, you can still make and receive calls and send and receive text messages. In addition, you can turn this feature on and off at-will so you can still check your emails periodically.
Use wi fi
You will have access to wi-fi hotspots at internet cafes and your hotel. Use ‘free’ hotspots with extreme caution particularly for transactions; they may be convenient but are not always secure and you could be compromising your sensitive information. Reduce your vulnerability by using strong passwords and some security software.
It makes sense to buy a local SIM card when you arrive at your destination particularly if you are spending a length of time away; make sure that your friends, family, colleagues and important contacts have the number so that you don’t miss out on important calls. Making calls will be much cheaper than using your usual number.
Don’t forget your insurance?
While vacations usually go without incident, you don’t want to be caught unawares. What if someone in your family suddenly becomes ill? What if your luggage gets lost or you have to cancel your trip? Travel insurance usually includes coverage for medical bills, lost baggage and cancellations. Read the fine print to ensure that you have the best coverage at affordable rates and make sure your medical insurance card is on you.
Above all, remember that a vacation is really about spending quality time with loved ones, having time for yourself and to just rest. It need not be that expensive; you can rediscover your own environment by visiting places close to home, revisit your hobbies, pastimes, and sports. With a little careful planning, you can find a balance between having an enjoyable vacation and still keeping your finances in check.
Happy holidays!
