5 Common Travel Money Mistakes (and How to Avoid Them)

Managing your money while travelling can be tricky. It’s not just about getting enough cash for your trip — it’s about avoiding unnecessary charges, poor exchange rates, and other costly pitfalls. Unfortunately, many travellers make the same mistakes again and again, often without realising how much they’re losing.

Here are the five most common travel money mistakes — and how you can avoid them to keep more of your budget for enjoying your trip.

1. Exchanging Money at the Airport

Airport currency exchange kiosks are convenient — but that convenience comes at a cost. They know you’re in a rush, and with no other options nearby, they can get away with offering exchange rates that are far worse than those on the high street or online.

It’s not unusual to lose 10–15% of your money in the exchange rate alone at an airport. If you’re converting £500, that’s £50–£75 gone before you even leave the terminal.

Avoid it: Order your travel money online in advance or visit a reputable bureau de change before you travel. You can also consider prepaid travel cards, which can be topped up with the currency you need and used like a debit card abroad.

2. Using a Credit Card with Foreign Transaction Fees

Many UK credit cards charge a “foreign transaction fee” of around 3% every time you use them abroad. That means a £100 restaurant bill will cost you £103 before any currency conversion charges are added. Over the course of a trip, this can easily add up to £50 or more in unnecessary fees.

Avoid it: Apply for a specialist travel credit card with no foreign transaction fees, or use a debit card designed for overseas use. Some online banks now offer cards with zero fees and competitive exchange rates.

3. Withdrawing Small Amounts from Foreign ATMs

ATM fees abroad can be surprisingly high — and if you make multiple small withdrawals, you’re paying that fee over and over. For example, if the fee is £3 per withdrawal and you take out cash five times in a week, you’ve lost £15 just in ATM charges.

Avoid it: Withdraw larger amounts less frequently to reduce the total fees you pay. Alternatively, use a card that refunds ATM charges or offers free international withdrawals.

4. Falling for Dynamic Currency Conversion (DCC)

Dynamic Currency Conversion is when you’re offered the choice to pay in pounds instead of the local currency when using your card abroad. It might sound helpful, but it almost always comes with a poor exchange rate and extra hidden fees.

Avoid it: Always choose to be charged in the local currency. This way, your bank or card provider applies the exchange rate — which is usually much better than the rate offered by the merchant’s payment system.

5. Forgetting About Leftover Currency

One of the most common (and most wasteful) mistakes is returning home with leftover coins and banknotes that you never use again. Most UK banks won’t exchange coins, and some won’t take smaller-value foreign notes. That means a surprising amount of currency ends up sitting in drawers or jars for years.

Avoid it: Use a specialist service like Cash4Coins.co.uk to exchange leftover coins and notes — even those no longer accepted by banks. You can also donate them to charity through us, with the proceeds going directly to your chosen UK cause.

Quick Checklist: Travel Money Do’s and Don’ts

• ✅ Do order your currency in advance

• ✅ Do choose a fee-free card for overseas use

• ✅ Do withdraw larger amounts to reduce ATM fees

• ❌ Don’t exchange money at the airport

• ❌ Don’t choose pounds when paying abroad

• ❌ Don’t let leftover coins and notes go to waste

The Bottom Line

Travel money mistakes can easily cost you £50–£100 or more per trip — and that’s money you could be spending on experiences, meals, and memories. By planning ahead, using the right payment methods, and knowing how to handle your leftover currency, you can avoid these pitfalls and keep more of your money where it belongs: in your pocket.

If you’ve already got coins and notes left over from past trips, don’t let them gather dust. Cash4Coins.co.uk makes it fast, simple, and hassle-free to turn unused foreign currency into cash — even coins and obsolete notes that banks won’t accept.

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