Plan your holiday budget cleverly: How to avoid financial traps!

Plan your holiday budget cleverly: How to avoid financial traps!

It's that time again: the holiday season is just around the corner and the anticipation of new adventures is building! But how do you plan your vacation budget correctly without getting into unpleasant surprises? Thomas Palus, CEO of PSD Bank Munich, gives valuable tips and answers several reader questions on this topic. Nowadays, the right means of payment when traveling are more important than ever.

When it comes to managing finances while on vacation, 80% of Germans prefer paying by card. However, cash should not be completely pushed into the background. Cash is still required in many countries, especially in markets, in small guesthouses or for taxi rides. Cash often rules, especially in rural areas or in countries like parts of Asia and Africa. It is therefore essential to take a look at the payment methods in the respective holiday country in order not to sweat when you arrive.

Means of payment abroad

Before traveling, you should be well informed about the payment options. The Federal Foreign Office website offers useful information here. Thomas Palus also advises that you should make sure that your cards work internationally before you travel. You can easily pay with PSD debit cards bearing the Visa logo in over 200 countries. Another tip: Before traveling outside the euro area, you should keep an eye on possible fees for foreign currencies and plan them in advance.

A few facts are essential when using credit cards abroad. The ING VISA Card is ideal for fee-free withdrawals from ATMs with a VISA symbol - this applies to 97% of all ATMs in Germany. However, you should note the foreign transaction fee of 2.20% that applies to sales in foreign currencies. A bank inquiry before departure can help to avoid confusion about fees.

Well prepared for your vacation

Finding the right form of payment in a new location can be tricky. Credit cards that offer flexibility for cash withdrawals from ATMs are popular. The Sparkasse Card, which guarantees international acceptance with its co-badges, is also a good choice. It is advisable to withdraw larger sums in order to minimize the fees per withdrawal. It is particularly important to keep track of expenses so as not to lose sight of your vacation budget.

Nowadays, modern payment methods such as Apple Pay or the Android “Mobile Payment” app are also on the rise, but are not yet accepted everywhere. Therefore, travelers should always have a backup method of payment with them to be on the safe side.

Don't forget an emergency plan

Before you start your vacation, it is also advisable to have the emergency number for lost cards handy. In Germany this is 116 116, from abroad you can use the number +49 116 116. It is also advisable to take a second card with you and store it separately, for example in the hotel safe.

If you are well prepared, you can act flexibly and safely even from a distance. A well-thought-out vacation budget is the key to starting your next adventure carefree!

For more information on the best holiday payment methods and tips from experts, check out the articles Augsburg Journal, ING and Savings Bank to.