“Digital Cash Stuffing” & Savvy Travel Saving Tips

The thought of travelling abroad this year can be daunting, as the cost-of-living crisis bites. In fact, almost half (47%) of Brits is actively making changes to the way they travel to ensure they can afford to go on holiday in 2023^[1]. To help travellers’ money go further, Jack Mitchell, Head of Currency Operations at FairFX, shares his expert advice on how to be a savvy travel saver – from “digital cash stuffing” to “planning ahead”.

What is digital cash stuffing

The “cash stuffing” method has been embraced by the British public and is having a TikTok moment, generating over 841 million views on the platform.

Cash stuffing is a budgeting tool which essentially sees savers set aside physical cash into allocated envelopes of various categories to spend when needed.

Travellers can adapt the principles of this method but take it digital – either putting money into a separate online bank account each month or by using a pre-paid currency card to save in the lead up to a holiday, ready to use when they board the airplane.

For those who want to give digital cash stuffing a try, a FairFX multi-currency card is free to order and can be topped up on the go, as little or as often as required.

As well as enabling savers to set funds aside in advance to cover their holiday essentials, with a FairFX currency card, travellers can earn up to 3.5% cashback at some of the UK’s top high street retailers.

 Avoid airport exchange desks

Planning ahead not only gives travellers peace of mind but can also help to avoid unnecessary costs, often found at airport currency exchange desk.

Before going abroad, travellers should check what type of currency they will need and order travel money before their trip to ensure they get the best available exchange rates.

As well as offering a competitive exchange rate, using a prepaid currency card can often help to prevent unexpected costs by avoiding transaction fees for purchases made abroad.

 Shop around

Travellers keen to keep an eye on prices should shop around as much as possible. Consider package holidays or untapped destinations – holiday makers may be pleasantly surprised by what they can discover in cities or beach breaks outside of the popular hotspots.

Consider the currency

The last year has been a bumpy ride for travellers, with the fluctuating pound leaving many unsure how far their finances will stretch in their chosen destination and popular holiday hotspots (such as Australia and New Zealand) becoming more expensive for UK visitors.

If the pound continues to drop against the Euro, we will likely see the cost of many Mediterranean holidays follow suit in 2023.

Travelling to destinations where the pound will stretch the furthest can help to give peace of mind, without the stress of being burned by over inflated exchange rates.

For a sunshine escape, British holiday makers will also get more for their money in Turkey; whilst Bulgaria is a smart option for those seeking a stylish city break.

As well as the exchange rate, think about locations where goods, services and accommodation tend to be more affordable, such as Lisbon, Krakow, and Riga.

Currently, the popular long-haul destination, USA, has a relatively low currency exchange rate – meaning Brits will get more for their money compared to a few weeks ago. However, a word of caution, rates are continuing to fluctuate, so do check before you travel.

Sell leftover travel money

Savvy budgeters who manage to return from their trip with money to spare do not need to leave the cash in a drawer until their next escape.

Many currency providers, including FairFX, will buy back leftover cash for select currencies so they can have the money back in their pocket – ready to spend or save for another trip.