How to budget for travel
Louis: No. I've got toothpaste. How many socks do I have? I can't handle this. My berets?
Jade: Maybe you’re missing a good budget.
Louis: Oh - Jade, what are you doing here? Scared, but also help me. I'm so stressed.
Jade: I'm here to help you pack. Well, at least help pack your mind full of knowledge about exchange rates, travel cards, budgeting and travel insurance.
Louis: Where do we start?
Louis Voiceover: ANZ presents How to budget for overseas travel. It's okay. I didn't know either.
Louis: I haven't gotten my travel insurance yet. I feel guilty. But is it 100% necessary? Do I need it?
Jade: It's highly recommended to get travel insurance and make sure you're covered with health insurance when you're traveling, too. We know that travel insurance usually covers things like canceled flights or lost baggage, and it may even cover medical care if you need emergency treatment overseas.
Louis: I just wish I hadn't left all of this to the last minute. I feel so silly.
Jade: Well, it is usually better to do it prior to leaving and do it in advance. In fact, the more things you can pay before you go, the more likely you are to get good deals and you won't run the risk of blowing your budget while you're overseas. Things like flights and accommodation end up getting more expensive as time goes on.
Louis: Honestly, that does make a lot of sense. Like paying a little now to avoid paying a lot later.
Jade: That's right. And if you have a credit card, it's worth checking if there's any travel insurance attached to that as well. Remember to check when it covers and what it doesn't.
Louis: Come to think of it, credit cards. Should I be using my Aussie bank card when I'm overseas? Or just like converting everything into cash before I leave?
Jade: There's a couple of ways to take money over. You could keep using your bank card, but it's worth checking if there are any fees or charges that might apply and what kind of exchange rate you'll get. Some cards might hit you with extra costs every time you use it. And don't forget to notify your bank if you travel. Otherwise, they'll flag it as fraud and then you’re without any access to money, And you'll have to call them to unlock your card.
Louis: We wouldn't want that.
Jade: Your other option is to load money onto a travel card, and that locks in your exchange rate before you go. So you won't risk losing value if the exchange rate fluctuates. Most cards let you load multiple currencies onto the card if you're visiting multiple destinations too.
Louis: Oh, so kind of like a card that speaks multiple languages? Un peu français, peut-être. Oui, oui ? Non non ? Baguette.
Jade: Oui ! But remember, it can be good to have a bit of cash on hand just in case you lose your card or you're in a situation where you need physical cash.
Louis: Oh, and when it comes to budgeting, what sort of things should I be looking out for?
Jade: Remember to budget for visas, flights, accommodation, and probably good to have an emergency fund as well because travel is full of surprises. What if you lose something valuable while you're there?
Louis: The only thing I plan on losing right now is the stress, all of the anxiety hanging over my head. Good vibes only.
Jade: Yes. Another tip is to set a daily spending budget, for example, $100 a day for food and for fun. Some days you might spend less, and some days you might spend more. But overall, you get a good sense of what you need and it's also a lot easier to keep an eye on your everyday spending.
Louis: Well, honestly, this has been so helpful. I love you. Are you sure you don't want to come? I wish I could pack you in my suitcase and just take all this advice with me.
Jade: Oh, I'd love to come
Louis: I think there's a little bit of space above the rainbow unicorn. But also, where does one go to get help? Because a lot of people won't be as lucky to have you next to them.
Jade: ANZ have a couple of helpful guides on their website and you can also hop on to SmartTraveler.gov.au to get some government advice on each destination.
Louis: Well Jade, this has been amazing and you know I love chatting with you, but there is a lot that I need to do in terms of packing. While I do that. If you found this helpful, subscribe to our channel and watch me as I upskill on a whole lot of other financial wellbeing topics. Oh, and don't forget to click the links in the description for some more handy resources. Shall we try?
Jade: All right, let's go. Yeah.
Louis: Okay, great. So what you’ve got to do is just... Put a foot in?
Jade: Yeah, foot first, right?
Louis: Oh, yeah no, we're onto something.
Louis: Yeah. Oh, come on. Do you trust me?