How are you spending the holidays?

The holidays are almost here. Are you one of those fortunate enough to get away from the stresses and strains of work and routine home life? Many people will be heading home to Nigeria to spend time with friends and family whilst others will be heading for other destinations. In all the excitement and anticipation it is so easy to overspend. Here are a few ways to manage your holiday finances and still have lots of fun.

If you have waited until the last minute to make arrangements for your vacation, you will have little flexibility and will have to accept whatever is available. Last minute bookings can cost you twice as much as if you had booked months in advance. This can get really expensive when a large family is involved. When you book early, there is time to shop around for the best deals on fares, accommodation and tour packages.

Air miles are useful in offsetting your ticket or accommodation costs, if you book well in advance of your trip. However, the best value from your air miles is usually during off-peak seasons when demand is low. It will be a challenge to find air mile tickets for travel now.

You do not have to travel to an expensive and exotic location just because “everyone else” is doing so. Look critically at your finances. Have you saved towards your holiday? How much can you afford to spend? Set an overall spending limit involving your family and try to stick to this. You will need to budget for the various aspects of holiday spending including accommodation, transport fares, food, shopping, entertainment, gifts, excursions, and so on. Avoid borrowing to finance your holiday unless there is the absolute certainty of an impending inflow of funds.

Have you sorted out your spending money? Cash withdrawals can be made using your Visa or Mastercard which are accepted at over a million Automated Teller Machines (ATMs) globally where the sign is displayed to either pay for goods and services or access cash. Linked to your Current or Savings account, all transactions reflect instantly.

If you plan to use your cards whilst you are away to save you carrying too much cash, notify your bank or credit card company; as an added security precaution, many card providers look out for what appears to be “suspicious” activity. If they see your card being heavily used particularly in what is an unusual environment for you, your account may be suspended until they have heard from you to confirm that it is indeed you using the card. As far as possible use your debit card for withdrawals at ATMs during bank opening hours. Hold some cash just in case your card is lost, stolen or not working.

You can also make payments and transfers out of your account from online banking solutions if you have this in place.

Licensed bureau de changes are available at major airports but they tend not to be as competitive as those in town. Look out for the commission charge and the exchange rate offered. Be cautious when you patronize moneychangers, as there is the very real risk of being shortchanged or sold counterfeit money.

While vacations usually go without incident, have you given any thought to what would happen if something were to go wrong? What if someone in your family suddenly falls ill, your luggage gets lost, or you have to cancel your trip? Travel insurance usually includes coverage for medical bills, lost baggage and cancellations. Read the fine print to ensure that you have the best coverage at affordable rates and make sure your medical insurance card is on you at all times.

Roaming charges can result in a shocking telephone bill when you return home. Contact your service provider and be sure of the implications and costs as you will be paying both for making and receiving calls. Pay your bills in advance so that you do not get cut off whilst you are away.

It makes sense to buy a local SIM card when you arrive at your destination; make sure that your friends, family, colleagues and important contacts have the number so that you do not miss out on important calls. Most SIM cards do not charge to receive calls and making calls will be much cheaper than using your usual number.

Above all, remember that a vacation is really about spending quality time with loved ones, and having time to rest. It need not be that expensive; you can rediscover your own environment by visiting places close to home, revisit hobbies, pastimes, and sports, or simply just staying at home. With a little careful planning, you can find a balance between having an enjoyable vacation and still keeping your finances in check.

Happy holidays!

Nimi Akinkugbe