Money experts advise carrying some local currency to avoid financial pitfalls
British travellers are being urged to rethink their payment strategies when heading overseas, as relying solely on cards could leave them out of pocket.
New findings suggest that a significant number of holidaymakers have found themselves in tricky situations abroad where cash was unexpectedly required.
A survey conducted by Opinium on behalf of Be Clever With Your Cash found that 39% of respondents had faced scenarios where card payments simply weren’t an option.
Tipping, local taxi rides, and purchases from small independent vendors topped the list of cash-only situations.
While prepaid and travel-specific cards are gaining popularity, they don’t completely eliminate the need for physical money. Travellers caught off guard often end up incurring extra charges from emergency ATM withdrawals or making hasty exchanges at airport kiosks – which tend to offer less competitive rates.
Venturing outside of major cities can further complicate matters, with many rural or remote areas showing limited support for card payments.
Amelia Murray, a money expert at Be Clever With Your Cash, explained: “There’s still a blind spot when it comes to cash. Many people assume that having a fee-free card is enough, but that can be a false economy if you end up using an ATM abroad that charges or gets stung by poor exchange rates.
“It’s not about carrying wads of cash, it’s about being prepared for those moments when a card simply won’t cut it.”
Top Travel Tips from Money Experts
- Pack a small “cash cushion” – enough to cover tips, local transport, and small purchases.
- Understand your card’s foreign transaction fees and ATM withdrawal policies.
- Avoid last-minute currency exchanges at airports to sidestep inflated rates.
- Check your travel insurance policy for cash loss coverage.
According to research published in May by financial data provider Defaqto, most travel insurance policies include some level of cash protection. Around 91% of annual and 86% of single-trip insurance plans provide standard cover for lost or stolen cash.
The analysis found that 35% of single-trip policies offer cover between £200 and £299, while 24% provide protection for sums ranging from £300 to £399.
Ultimately, a bit of planning and a modest stash of cash can save holidaymakers from costly surprises – and ensure their travels remain stress-free.
