The holiday season is in full swing and more and more Swedes are leaving the country to vacation in more exotic parts of the world. Many people think that it feels safe to already get some of the local currency at home, in order to be able to spend immediately after arrival.
But this can be a costly mistake. News24 have talked to Ola Söderlindhousehold economist at the Zmarta comparison service, who believes that there are big differences in cost in how you pay for your purchases abroad.
– If you want to make the travel fund last longer, it is a good idea to compare exchange rates and card fees well in advance of the trip, he says.
Here are the best and worst payment methods abroad.
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Costs for card payments and cash
A survey by Zmarta shows that the difference between different payment methods abroad can vary depending on whether you choose to pay by card, withdraw cash in the holiday resort or whether you choose to exchange money in Sweden.
The absolute cheapest method is to pay by card. Card payments incur an average surcharge of 3.1 percent in card fees, which is the average for the major Swedish banks.
Ola Söderlind, believes that it is easy to get by with only cards on holiday, especially within Europe.
– In Europe, you get by 99 percent with cards. There are countries like Albania where you still use a lot of cash, but as a rule you get by with payment cards, he says.
For those of you who feel insecure about having an empty wallet, he recommends that you have a smaller amount.
– It is enough if you have cash for transfers, food and accommodation for one day, he says.
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Exchange money in Sweden – the most expensive option
The absolute most expensive option is to exchange money already in Sweden. Exchange fees here can be as high as 7.2 percent, which is more than twice as much as withdrawing money abroad.
According to Zmartas holiday index an average holiday week in Europe costs SEK 10,000 per adult, while the cost for children is half that.
If a family with two children chooses to pay for the holiday with cash exchanged in Sweden, they pay SEK 3,185 more than if they chose to use a card. Ola Söderlind says that if you really want to have cash with you, there are other options.
– If you feel safer with a little cash, take it out at an ATM here in Sweden, where you can withdraw euros from most of them. And skip the exchange offices.
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When cash is necessary
Despite this, there are some restaurants and shops in Europe that only accept cash. In such cases, Ola Söderlind recommends withdrawing the money from an ATM on site. Then the fee will be only 3.5 percent.
– If you want to be able to shop everywhere, you should of course also have some cash. Both euros and pounds can be withdrawn in selected Swedish ATMs or at the destination, he says.
However, he recommends that you bring as little cash as possible.
– Make sure you don’t have more than you need, as it is next to impossible to get back cash that has been stolen, says Ola Söderlind.
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The household economist’s best tips for getting more value for money
Ola Söderlind believes that there are concrete sets that can give you the most value for money on holiday. Here are his top tips:
He adds:
– And don’t buy a “Gran Canaria t-shirt” or other souvenirs that you will never use again.
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