As summer approaches, people’s minds are turning to holidays. Whether it is in search of cooler climates, a feast of culture, or just a well-earned relaxing break in a beach resort, people are looking forward to a break.

From ensuring your suitcases are brought out and aired, to finding the best bargains for car rentals, sufficient pre-planning can make your holiday truly worthwhile. One of the biggest nightmares of a holiday can be how to manage money: how much to spend on a holiday, how much to carry or how to keep track of holiday expenses are all things holiday-makers grapple with, especially when shopping seems to be hard to resist!

Financial planners recommend spending no more than 1.5% of your annual income on holiday spending. While this is a good guideline, most would go beyond this and money management becomes the last thing on a priority list. The result is often surprise at the eventual cost of a holiday and the determination to plan better financially next time.

There are also times when money management goes right to the top of the list - wallets are sometimes lost or stolen, or travellers cheques stolen or misplaced.

There are ways to avoid these headaches by budgeting and planning well in advance and handling expenses better during a holiday, following a few simple tips.

One of the main worries holiday makers face is the worry of how to carry money when traveling. While there is always the need to have easy access to money there is also the risk of carrying cash or other payment methods such as cards or travelers cheques. Afterall, being robbed is always a threat.

Modern payment methods such as debit and credit cards, and the global networks that support them, mean that travellers no longer have to risk carrying large amounts of cash when on the move. Instead, a small piece of smart plastic from your bank, will open doors all over the world. Payment cards also allow you to withdraw cash from ATMs globally in case you need it for purchases or expenditures that have to be made in cash such as for taxis and buses.
There are a host of other handy tips for money management, which we take a look at in the sections below.