Martin Lewis urges holidaymakers to avoid this mistake when paying for goods abroad
The money saving expert warns families not to get caught out when travelling abroad for your holiday
![Martin Lewis](https://cdn.mos.cms.futurecdn.net/9ckWFpXMnHmTZeSvtFFoMX-415-80.jpg)
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."
GoodtoKnow Newsletter
Parenting advice, hot topics, best buys and family finance tips delivered straight to your inbox.
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.
Sarah is GoodtoKnow’s Consumer Writer & Money Editor - which means she writes about everything from this year's top toys and the newest toy releases, to discounts on days out and childcare costs. Sarah is passionate about helping mums save money wherever they can - whether that's spending wisely on the right toys and kidswear or keeping on top of the latest news around child benefit, the motherhood penalty. A writer, journalist and editor with more than 15 years' experience, Sarah is all about the latest toy trends and is always on the look out for toys for her nephew or Goddaughters so that she remains one of their favourite grown ups. When not writing about money or best buys, Sarah can be found hanging out with her rockstar dog Pepsi, getting opinionated about a movie or learning British Sign Language.
-
How do working mothers juggle the school summer holidays? We asked 12 mums and their honesty is sobering
Want to know just how broken the UK childcare system is? Just ask 12 working mums how they're handling the school summer holidays
By Heidi Scrimgeour Published
-
10 common signs of ADHD in girls and why they often go ignored
Women often go undiagnosed for decades
By Charlie Elizabeth Culverhouse Published
-
Two-child benefit cap: what is it and will it be scrapped?
We look at what the two-child benefit cap is and the likelihood of it being abolished, amid mounting pressure on the Prime Minister to scrap it
By Sarah Handley Published
-
Are you missing out on up to £2,000 a year to help with childcare costs? Here's how to claim it
With 1.3 million parents eligible, and only 500,000 claiming it, you could be missing out on free cash from the government to help with the cost of childcare and holiday clubs over the summer
By Sarah Handley Published
-
Morrisons launches Family Picnic Box for £20, but there is a way you can get it for less
Avoid sky-high food prices, and additional mental load, on day trips with the kids this summer with this genius picnic box from Morrisons
By Sarah Handley Published
-
Holiday childcare costs up 6% says new report, with supply shortages still an issue
Working parents facing higher costs when it comes to sorting childcare provisions during the school holidays
By Sarah Handley Published
-
Parents share the devastating impact of two-child benefit cap, as 1.6m children now affected
Campaigners urge the new government to scrap the controversial policy
By Sarah Handley Published
-
Don’t miss! 50% off kids tickets at Merlin attractions, including Madame Tussauds, SEA LIFE, and the London Eye
Merlin is offering discounted child tickets at loads of attractions across the nation, just in time for summer holidays - and it's teamed up with TikTok's ice cream twins to do it
By Sarah Handley Published
-
Primary school 'costing parents £6,000' according to new research - here's 6 ways to save money
The seven years of primary school can cost parents thousands of pounds, with lunches and school uniforms the biggest challenges. But there are ways savvy parents can ease the pressure of the financial burden
By Sarah Handley Published
-
Do I qualify for a school uniform grant? Parents can get up to £200 to cover costs from July
Hundreds of councils are helping parents cover school uniform costs this year and thousands of parents are eligible for the help
By Charlie Elizabeth Culverhouse Published