Considering a summer vacation? Don’t let costs “get away” from you while planning your trip. Here are some easy ways you can manage your finances and save money on your summer getaway.

MANAGING EXPENSES

It’s important to know how much your vacation will cost before you begin saving. Think about expenses such as transportation, accommodations, activities, and meals to get a clear picture of how much you should budget.

One way to help achieve your expected budget is to find ways to save and earn. Opening a vacation-specific savings account has become a popular way to put aside money with several added benefits:

  • An account allows you to stash funds specifically for your travel goals. 

  • By setting up automatic deposits, you don’t have to worry about adding funds to the account.

  • Shopping for an account with a high interest rate can help you reach your goal faster. 

  • You can resume saving immediately after your trip, gearing up for your next vacation.

VACATION SECURITY MEASURES

Something you should always do is notify your bank of your travel, regardless of where you’re going. This simple step prevents them from flagging your purchases as suspicious, which could cause an inconvenience. For Riverwind customers, give us a call before you travel to avoid your account being temporarily disabled. Find your local Riverwind contact.

Stay on top of your account’s safety by turning on alerts. When enabled, you know immediately when something unusual happens to your account, allowing you to act quickly.  To activate financial alerts from the Riverwind app, locate the Alerts and Control Preference screen. From there, you can control how you’ll receive your alerts and what types of transactions to receive them for. 

Before traveling, make sure all of your bank accounts are secure. Common practices include changing your banking passwords, adding a personal phone password, and turning on two-factor authentication. These security measures make it more difficult for thieves to access your bank account. 

It’s also a good idea to pack extra funds when you travel.  Backup cards are beneficial in the situation a card has been canceled due to fraud. If you’re married, it’s possible to get two cards for the same account. It’s also beneficial to pack extra cash if you are planning to use cash. Just remember to keep them separate from your daily spending money to avoid any mishaps.  

DEALING WITH FOREIGN TRANSACTION FEES

When you use your debit or credit card to purchase internationally, your bank may charge a foreign transaction fee of 2-3% of the purchase price. For example, you spend $20 in a foreign department store. With a 2% foreign transaction fee, you will see a $2 surcharge when you receive your statement. This charge exists with both in-store shopping and ATM withdrawals. 

There are a few ways you can avoid or minimize these fees when traveling abroad:

  • Consider applying for a credit card with zero foreign transaction fees. 

  • Look into checking accounts or debit cards that waive foreign transaction fees. 

  • Get some cash before you leave home to minimize trips to the ATM.

  • Avoid transaction fees entirely by paying in cash while abroad. 

A well-thought-out financial strategy is crucial in turning your summer vacation into a reality. By managing expenses, securing your finances, and understanding foreign transaction fees, you can plan a vacation with confidence. Start planning early, and make your vacation a financial success.


Sources:
https://www.vacationcounts.com/complete-guide-to-protecting-your-finances-money-security-on-vacation/
https://www.investopedia.com/articles/personal-finance/082114/best-places-exchange-currency.asp
https://www.investopedia.com/foreign-transaction-fee-vs-currency-conversion-fee-know-the-difference-4768955
https://www.accruesavings.com/post/travel-expenses-list
https://smartasset.com/checking-account/using-a-vacation-savings-account-for-your-next-trip