Currency conversion mistakes costing holidaymakers £127 a year

Motoring and Travel

Updated on 17 June 2015 | 1 Comment

Muddled maths mean some holidaymakers run out of money.

Holidaymakers are accidently spending far more that they intend when abroad as they struggle to make currency conversions, according to new research. 

Barclaycard’s Holiday Habits study claims these currency miscalculations mean we are spending an average of £127 extra per person.

More than half of us (52%) try to keep track of our spending by converting foreign currency into pounds, but over a quarter of us get the calculation wrong. And that miscalculation can be costly - for more than a quarter (27%) the muddled maths mean they run out of money while away. 

So why are we getting the conversion wrong? The study reckons that almost half (44%) struggle to make the mental conversion, while almost a quarter (24%) of us admit to having got the sums wrong after indulging in a few drinks. 

Cut the cost of your travel insurance

How to avoid overspending

While we may overspend once we are abroad, as a nation we are getting a lot better at planning for our holiday spending. The Holiday Habits survey found that 78% of us now shop around to get the most competitive exchange rate for our currency. Read Best places to buy your holiday money.

And once we are on holiday an impressive 54% of us will barter in order to get the best deal on our shopping.

If you are worried about breaching your budget when you are on holiday consider setting up balance alerts to warn you if you are spending to much. Most banks and building societies offer this service so check with yours before you go on holiday.

Also make a note of the exchange rate for a variety of prices before you head away. For example, a note on your phone or in your wallet of what €1, €10, €50 and €100 are in pounds will help you make more accurate conversions.

Cut the cost of your travel insurance

More on travel:

Best places to buy your holiday money

The best prepaid cards for spending abroad

The best credit cards to use on your travels

The best debit cards to use on your travels

Travel insurance for the over-50s

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