You are here: Home - Household Bills - News -

Currency conversion confusion costs consumers £350m every year

0
Written by:
18/06/2015
British holidaymakers collectively lose out on £341.5m annually – an average of £127 per person – due to confusion over currency conversion, Barclaycard research reveals. 

The latest Holiday Habits study indicates that last year 52 per cent of British holidaymakers attempted to keep track of their spending by converting foreign currency into pounds, but 28 per cent made a mistake due to currency conversion confusion.

These errors resulted in them buying items that they thought were overpriced (45 per cent) or items they wouldn’t have otherwise chosen (36 per cent). In the most extreme instances, 27 per cent actually ran out of money as a result.

For 44 per cent of those making a mistake, struggling to make a mental currency conversion is the cause for miscalculation.  A similar proportion panic while trying to make a quick decision (42 per cent), while 37 per cent fail to remember the correct exchange rate in the first place. 24 per cent admit to making mistakes while under the influence of alcohol.

Extravagant designer purchases (16 per cent) are the main culprits for overspending abroad, followed closely behind by holidaymakers splashing out on local delicacies (15 per cent), gifts (12 per cent) and souvenirs (10 per cent).

These rash financial commitments are made despite an apparent tendency toward prudence and frugality among UK holidaymakers. 78 per cent conduct research to get the most competitive exchange rates, and 54 per cent actively haggle to secure the best possible price when shopping abroad.

“Currency conversions you do quickly in your head can often lead to a big headache later,” said Katherine Whitton, chief marketing officer for Barclaycard.

“Our research shows that holidaymakers can really benefit from reminders and alerts to help them manage their money, such as setting spend limits.”

Related Posts

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
80,000 Brits travelling overseas for work at risk

Many UK citizens travelling abroad for work purposes are jeopardising their financial futures, according to AES International.

Close