If you have Gen Z children who are planning to explore the world, you’re likely concerned about how they’ll manage their finances during their travels. One choice worth considering is a travel money card. These cards offer several benefits that will supply peace of mind for both you and your children. Let’s delve into how travel money cards help your kids make the most out of their international adventures while addressing your specific concerns.
Understanding Travel Money Cards
A travel money card is a specially designed card that allows your children to spend money abroad conveniently. They can obtain a travel money card from their bank (if offered) before their trip, which can convert their money into the local currency when used. The key advantage is that these cards are separate from their regular transaction accounts, minimizing the risk of losing their savings if the card is lost or their details fall into the wrong hands.
Security Features for Peace of Mind
These cards come with robust security features, including PIN protection and the ability to lock or block the card if it’s lost or stolen. As parents, you can have confidence that your children’s funds are secure while they explore the world. Having a card linked to their bank account also allows your children to load funds quickly in case of an emergency.
Save On Transaction Fees:
Imagine your kids using their regular debit card overseas, making a simple purchase, and then getting hit with foreign transaction fees. These fees can add up quickly and may even surpass the cost of the item they bought. Travel money cards typically allow them to pre-load certain currencies and save on foreign transaction fees that apply to other cards. Additionally, many travel money cards typically offer low or no fees for ATM withdrawals and everyday transactions.
Capitalizing on Exchange Rates:
Exchange rates fluctuate. By checking the exchange rate of their destination country, they can load their travel money card when they spot a favourable rate (if the desired currency is available). However, it’s important to note that exchange rates can be unpredictable, so there is some risk involved in timing their currency conversion.
Ideal for Multi-Leg Trips:
If your kids are embarking on multi-leg trips, travel money cards could be a great solution. They can load multiple currencies onto their card before even reaching their destination. This way, they won’t have to deal with currency exchange kiosks at every airport or bus station, which often offer unfavourable exchange rates. Even if even if their desired currency isn’t available to pre-convert, your child will usually be able to spend in the local currency without paying a foreign transaction fee. Having the local currency on hand for initial expenses, such as transportation, is practical, and the card provides a safety net in case they need additional funds.
Budgeting Made Simple:
For the budget-conscious traveller or those who tend to splurge, travel money cards are a bona fide budgeting tool. Preloading funds allows your kids to keep track of their spending while abroad. Before making a significant purchase, they’ll need to consider whether it’s worth the hassle of adding more money to their card. This added step may help encourage responsible spending and ensure they have savings left to cover unexpected expenses.
Travel money cards are a valuable asset for your children’s overseas adventures. They offer security, savings on a variety of fees, and the convenience of multi-currency loading. Additionally, these cards make it easier to track expenses.
While travel money cards are an excellent choice, it’s essential to explore other financial tools like carrying cash or using credit cards to figure out the best fit for your kids’ specific travel needs. For more tips on managing and spending money while traveling, Year13 has created a Travel Hub, with free resources aimed at helping Gen Z Aussies travel overseas.