With the Christmas season already in and New Year around the corner, it’s the holiday season for most and also the time to travel. Not only to domestic locations, but many are seen talking a long break and going abroad with friends and family during this winter break.

While planning for a trip, most generally look at flight tickets, booking hotel rooms, and preparing the list of places to visit. However, what we most importantly forget are the added financial responsibilities that also need to be fulfiled before packing your bags.

To help you, here is a financial checklist that you must take care of before going on your vacation:

  • 1. Travel Budget: Make a travel budget. This is needed especially when you are travelling to a foreign country. Having a budget in place, helps you estimate your expenses such as hotels, meals, transport, entertainment, shopping, and sightseeing expenses. Experts suggest, with this one will also be able to save a considerable amount of money.
  • 2. Travel Insurance: While travelling to a foreign country, if you encounter an unforeseen event, it could have a serious financial impact, the medical expense being the most significant expense. Most health insurance companies don’t cover health costs in foreign countries. The healthcare and medical costs in western countries are extremely high. Hence, having a travel insurance policy can help you in case of an emergency. Travel insurance also includes other events such as trip cancellation, trip interruption, loss or theft of baggage, etc.
  • 3. Different modes of Foreign Currency: While travelling overseas, you will have to get your currency exchanged at the current rates between your country and the country of travel. This can be done through the various modes available. To get the best and cheapest rate, try to buy foreign exchange before the trip, from a bank or other registered currency exchange centres. This way you will not have to buy currency at expensive rates, usually at airports and hotels.
  • 4. Inform your bank: Before travelling inform your bank about your travel plans. This way banks monitor and keep track and a check on unusual or fraudulent activities. Experts suggest travellers must do this now, give the rise in fraudulent activities. If you do not inform your bank and you visit a foreign country, there are chances that the bank might block your card suspecting unusual activity in a foreign location, as a fraud.
  • 5. Forex Card: For travellers travelling abroad, Forex cards are the best option, since they are cheaper compared to cash. Most people don’t like to carry cash nowadays, and exchanging cash also becomes difficult (due to market availability/and varying exchange rates). A forex card, on the other hand, can be loaded with the currency of your choice, with which transactions can be done instantly without any transaction fee similar to a credit or a debit card.