Summer is quickly approaching, and that means that many people across the UK are planning to catch a break by heading abroad.
But summer holidays can be costly, and with the cost of living crisis biting, families this year will really be looking to cut spending wherever they can.
Luckily, Martin Lewis has us covered as he makes a welcome return to TV.
During an hour-long special of The Martin Lewis Money Show, the trusty Money Saving Expert has explained how you can save money abroad by choosing the best way to spend it.
Here’s everything you need to know about Martin’s holiday spending tips.
The best bank cards to use abroad
During the show, Martin Lewis explained to viewers that the best way to save money abroad is by using a credit or debit card.
But Martin stressed that you need to choose the right card in order to avoid "paying to pay" while on holiday.
He showcased three types of cards that are the best for those travelling abroad:
- Chase debit card
- Halifax Clarity credit card
- Barclaycard Rewards credit card
All three cards don’t have exchange rate fees, and there’s no interest on spending as long as you pay in full.
Martin said that out of the three cards, the Chase debit card takes the top place as the best to use abroad, offering 1% cash back on purchases made.
Should you use cash when on holiday?
In the growing digital economy, cash may seem like a thing of the past, but many travellers are still opting to pay in cash when they go abroad because it’s a simple way to spend.
Martin explained that using cash is still a good way to spend money abroad, but warned that Bureau de Change cash rates are often beaten by debit and credit cards.
If you do opt to use cash, Martin advised never to exchange cash at the airport and to always use a travel money comparison site to search for the best rate.
Should you withdraw money from ATMs while abroad?
When it comes to using ATMs abroad, Martin had some important advice.
He warned viewers that cash machines in other countries can often have high usage fees and exchange rates.
To help viewers understand how to use cash machines abroad, Martin recorded a segment in Malaga, in which he attempted to use different cash machines to withdraw €200.
The target price for the withdrawal was £169, but Martin showed viewers that you can easily spend much more than that with unnecessary fees.
He said: "The first thing to watch for — is there a fee for using the cash machine?"
Some machines can charge up to €4 for a withdrawal, so it’s worth looking around for one that doesn’t have a usage charge.
Martin continued: "Next, the big one — what exchange rate will they try to charge you?"
Cash machines abroad can charge huge exchange rates, but Martin revealed that there’s a simple way to avoid this.
"You do not want this machine to do the conversion for you, you want your card company at home to do the conversion because, even if it's not a good card, it's at a better rate."
In total, the €200 withdrawal cost Martin £169.20 but it could have cost up to £191 using the machines' rates.
As a final piece of advice for travellers, Martin said: "Do not pay to pay. 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."
