Currency exchange rates can affect your travel plans

Advertisement

Planning a relaxing holiday or an exciting city break is always fun. One thing that you should think about when making plans though is how currency exchange rates can affect your thinking. These rates simply show how much of the local currency you get back for each British pound. Naturally, it is preferable to find a country where the rate means you retain as much purchasing power as possible for the number of pounds you change into the local currency.

But how exactly could exchange rates affect your travel plans?

 Influences where you choose to go

 Perhaps the first and most important impact that exchange rates have on any travel plans is where you actually decide to go. Many people look at the exchange rates between the UK and a proposed destination when planning a holiday. If the rate is poor, then you may well decide to change your plans and look for somewhere else with a better rate. Of course, the flipside is true. If you find a country that has a good exchange rate against the pound, you may decide to book there.

Impacts on any money transfers

 It is not only straight exchanges of money in person which rates affect when travelling. If you need extra funds sending over from home for any reason, the rate you get will decide how much of the money’s value makes it over to you after being converted. With that in mind, many people use online money transfer services for this task to get the best deal. If you were in America and needed more funds, they could help facilitate transfer to the US safely of money and also make getting the best rate easier.

The money you have to spend on extras

 Another impact which exchange rates can have on your plans happens when you arrive at your destination. If the rate is poor then you may not get much local currency to spend when you change British pounds there. That may also be the case if you change money in the UK and do not get a good rate. Less money to spend means you may not be able to go on planned excursions or do everything that you would like. If the rate you get is good however, then this could actually make a positive change to your personal finances and see you go on more trips than you first thought possible.

Can make some places quieter

 Exchange rates are essentially the value of one currency expressed in another currency. That means travellers from different countries will get different rates. If you prefer to head somewhere quieter, then you could use this to your advantage. If only the pound has a good rate against local currency, then it may be that tourists from other parts of the world would not travel there.

Getting the best rates is vital

 Of course, the obvious solution to any issue around exchange rates is to find the best one you possibly can. Doing so will mean that you can fully enjoy your break and have enough money to do everything you wish to when you are there.

Advertisement

About Editorial Team 69 Articles
Watch My Wallet has everything you need to know about money, written by real people who’ve been there. Inspired by the philosophy of Early Retirement Extreme (ERE), our goal is to make informed decisions about our finances in order to achieve financial independence.

Be the first to comment

Leave a Reply

Your email address will not be published.


*