Learning to save money is an important skill for both travelers and non-travelers alike. Having a financial cushion can be a lifesaver if you get stranded backpacking across Japan or even stranded after your car breaks down on the way to work. Here are some ways people across the globe save money.
Establishing a bank account that grants a debit card and has online access is the easiest and most common way for people to save and track their money. While traveling abroad, this becomes even more important.
Having an account attached to a debit card while overseas will give you international bank access, which will let you avoid the crazy currency exchange fees. Many banks will give you the best exchange rate of the day that you withdraw money from your account and you won’t have to deal with those seedy currency exchange kiosks.
Another benefit is not needing to worry about carrying cash with you, which can get very tricky when you’re already carrying luggage/passports/that pair of cute Italian pumps and that new purse you splurged on. You can have your debit card handy for that amazing plate of bangers and mash at the local pub. Don’t forget to wash it down with a good brew!
You can also track your spending and view your statements online. Who doesn’t like the ease of instant access? Immediate access to your accounts is a great way to determine if you’re sticking to your budget. By taking advantage of savings accounts, you are taking all of the stress out of the time you’ve carved out to enjoy yourself.
Some banks even offer rewards to savers who use their debit card for purchases, rather than using cash. Finding a bank that offers to pay for your ATM fees can add up to a lot of savings quickly. Having money saved in the bank is a great idea as well, because you can earn interest on their cash the longer it is saved in the bank.
Speaking of making more money, an Individual Savings Account, or an isa for my UK readers, is a great way to make tax-free interest on your savings. For UK residents, you can open an ISA account and deposit up to £5,640 a year in cash. Any interest earned is then tax-free! Many similar investment vehicles exist in other countries as well, such as municipal bonds in the US. This money will grow over time and be available to you when you need it. This means that you’re putting your hard earned cash to good use. It’s working to make you more money!
You can also start a savings account for your child, which they can not access until they are 18 years old. They can use this money for traveling, for college, for that new house or for starting their lives. With restricted access, you can rest assured that the money will grow to its full potential and be available for some of your child’s biggest expenses.