Holiday funds

– In partnership with Collector Bank –

Summer vacation time for most Swedes during July and August and as many of you choose to travel abroad during the summer months, I want to mention a few things that might be good to bear in mind when it comes to money. Pingis and I brought this up in one of our EQnomics programs that we record with Collector Bank and Aftonbladet TV.

We talked about how important it is to pay for your trip with your credit card, because more or less all the credit cards offer your travel insurance for free if you pay for the trip with their credit card. That’s a really good deal if you, for example, have to go to a doctor or hospital abroad, as that could prove really expensive. Nor are you guaranteed to get any money paid out to you in arrears if you don’t have a really good travel insurance.

One question that often pops up when holidays are discussed is if you should choose to the local currency or Swedish Krona when you pay with your credit card. It is very rare that the Swedish Krona would be a better deal than the local currency as you usually get a better exchange rate if you choose the local currency. One clever trick is to compare different credit cards to see how much they add to each purchase when you buy things abroad. It can vary from 3% down to nothing at all. This applies to all purchases abroad, so you can really save a few bucks by doing your research!

My best tip when it comes to vacation and finances is to do a budget. Of course there has to be some room for spontaneity, but it is wise to try to estimate all the costs that might arise. Even the smaller amounts, because otherwise things could easily run amoc if you don’t have a plan to stick to.

And here’s the program where Pingis and I discuss holiday funds, if you want to catch it again.

– In partnership with Collector Bank –

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