Martin Lewis has highlighted the one button holidaymakers should never press when using a card or cash machine when abroad.
Speaking on The Martin Lewis Money Show, the money saving expert explained how pressing the 'convert to GBP [pounds]' button on an ATM or when paying by credit or debit card could be costing families significantly more than if they paid in the local currency. With inflation still high, it's never been more important that families understand how to save money on holiday, both before they go and when they are away.
This warning comes soon after Martin issued a desperate plea for families to get travel insurance as soon as they've booked their holiday to protect their investment and ensure peace of mind should you, or someone in your family become ill or have an accident on holiday. The money saving expert has also warned families around data charges while abroad. If you're planning on staying in a hotel on holiday, make sure you try this hotel hack to see if you can save money on your booking.
Never 'convert to GBP' if using a card abroad
Especially in a post-pandemic world, we've all become used to using plastic to pay for most things rather than cash. When you're at home, it's not usually problematic as you are paying for goods and services in your local currency. But when you go abroad, you might feel that you need to convert the payment into pounds when paying my card or using a cash machine.
But these machines charge a conversion fee, which is added on top of the exchange rate, meaning you're paying even more.
Martin Lewis said: "You want your card company at home to do the conversion because, even if it's not a good card, it's a better rate. Continue with conversion? No way, it's going to cost me 20 quid more than it should.
"When you go into a shop, when you go to a cash machine, and it says "do you want us to do the conversion for you", no, no, no. Pay in the local currency."
Martin added that holidaymakers could consider one of the best travel credit cards (our sister site The Money Edit has rounded up their top picks) to avoid any unnecessary charges. This can be preferable to travelling with cash, which might be lost or stolen, and you might be unable to claim the amount you lost back on your travel insurance policy. Always use an eligibility checker before applying for any kind of credit card or loan to see your chances of being accepted. This will prevent your credit score from being negatively impacted.
Looking for more Martin Lewis money tips? Check out Martin's council tax tip that could save you hundreds of pounds each year, Martin's energy tariff warning, the trick he uses to save money on medication, and the passport mistake all holidaymakers should avoid this summer.
-
Prince Archie and Princess Lilibet will likely join Prince Harry and Meghan Markle on their Nigeria trip next month for this poignant reasonThe Sussex family have special ties to the country
-
New research shows number of children taking sleeping pills has doubled over past 7 years - but there are other ways to help children build better sleep habitsA number of lifestyle factors have made sleeping more difficult for children in recent years, experts say
-
3 ways you can save money on Alton Towers tickets (and the fine print you need to know to bag the best bargain)Did you know you can go to Alton Towers from as little as £11? But it might leave older children a little miffed - here's why
-
New data highlights the main disparities when it comes to parents requesting flexible working, and sadly we're not surprised by the findingsWe'll give you three guesses as to which parent is more likely to ask for flexible working arrangements from their employer...
-
Record number of families opt-out of claiming child benefit, but the decision could have serious repercussions for your futureStark warning for families as number of parents who opt-out of receiving child benefit reaches 10-year high
-
'It isn’t a holiday – it is crucial bonding time' - 70% of dads can't afford to take two weeks paternity leave, according to new researchThe research also found that only 14 per cent of fathers were ready to return to work mentally after taking their paternity leave
-
Two-child benefit cap 'pushes children into poverty' - campaigners urge government to scrap 'cruel policy' that impacts 1 in every 10 childrenThe controversial two-child benefit cap has met with strong opposition since its introduction in 2017
-
Gen-Z could be costing their parents £1,300 a year, by refusing to do this one thing (but it's not always their choice)It's not just parents who are facing the additional costs, the costs for Gen Z could be even higher
-
More than half of parents want to do this important thing for their kid's education but can’t afford to, according to new researchPressures on the family budget are preventing parents from paying for educational support outside of school
-
75% of mums feel guilty buying things if they earn less than their partners, according to social media poll, and the comments section was part heartbreaking, part inspiringSome mothers felt guilty for spending their partners money, while others saw it as household money instead
