Summer has arrived, bringing with it the annual migration of British holidaymakers towards warmer climates, lighter evenings and the firm belief that normal financial rules somehow become a little more relaxed once a passport is involved.

At home, many of us compare prices, review household budgets and think carefully before making larger purchases.

Yet spending abroad often feels different.

The numbers are in another currency, exchange rates are unfamiliar, and paying by card is usually as simple as a quick tap.

That convenience can sometimes come at a cost.

Consumer guidance published by Forbes in March 2026 notes that some UK debit and credit cards can incur additional fees of up to 6% on overseas spending through foreign exchange and cash withdrawal costs.

Over the course of a family holiday abroad, these fees can add-up to a significant additional cost that may not have been budgeted for.

With many families preparing for summer breaks, here are five practical points worth considering before you travel:

1. Check Your Card Before You Go

Many people assume their everyday debit card works abroad in the same way as it does at home.

Whilst it may work perfectly well, the costs associated with using it can vary between providers.

Spending a few minutes checking your provider's overseas charges before travelling may help avoid surprises later.

2. Look Beyond the Exchange Rate

The exchange rate is only one part of the overall cost.

Transaction fees, cash machine charges and currency conversion costs can all affect the amount ultimately deducted from your account.

Looking at the complete picture is often more useful than focusing solely on the headline exchange rate.

3. Be Careful When Offered the Choice to Pay in Pounds

Many overseas retailers now offer customers the option of paying in pounds sterling rather than the local currency.

Although this may feel reassuring, it may not always provide the most favourable exchange rate.

Understanding the options available can help you make an informed decision.

4. Think Before Using Cash Machines

Cash machines remain useful when travelling, but some withdrawals can involve charges from both the ATM provider and your card provider.

Checking any fees displayed before completing a transaction may help avoid unnecessary costs.

5. Keep Track of Holiday Spending

Holiday purchases can feel less significant when viewed in another currency.

Whether it is souvenirs, excursions or meals out, keeping a rough spending budget can help ensure the holiday memories last longer than any unexpected bank statement surprises.

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The Curious Case of Emma and Chris

To illustrate this, our favourite fictional couple, Emma and Chris head to Italy for their summer holiday.

They spend one glorious afternoon exploring the famous glass shops of Murano.

Before long, Emma discovers a beautiful, hand-crafted glass ornament and immediately decides it would look perfect at home.

Chris studies the price tag and politely suggests that perhaps they already own enough ornaments.

Emma insists this one is different.

Chris remains unconvinced and wanders off in search of gelato.

Within approximately fifteen seconds of his departure, Emma turns to the shopkeeper and gestures in her best ‘Italenglish’ to buy the ornament anyway.

With the price being more than they had in cash available, Emma pays using her everyday UK debit card and quietly decides that Chris doesn't need to know the finer details.

The ornament survives the flight home and takes pride of place on the dining room table.

Emma is delighted.

A few days later, however, she notices a small crack running across the base.

At around the same time, she checks her online banking and discovers the purchase has acquired a collection of additional charges and currency conversion costs that she hadn't fully appreciated at the time.

Suddenly, the crack seems strangely symbolic.

For several days, Emma quietly moves the ornament further and further into the corner of the room, hoping nobody will notice.

Unfortunately, Chris does.

"Has that ornament always had a crack in it?," he asks.

Emma sighs.

"Only since I looked at my bank statement history."

The lesson, perhaps, is that when spending abroad it's worth paying attention not only to what you're buying, but also how you're paying for it.

Small cracks in a spending plan can sometimes become much easier to spot once you're back home.

Regulatory Disclosures:

CG Finance Ltd is an Appointed Representative of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority, FRN 197107

This article is for information purposes only and does not constitute financial, legal or tax advice.