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You can find the current article at its original source at https://www.theguardian.com/money/2018/jul/28/gap-year-travel-finance-money-checklist
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| Version 0 | Version 1 |
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| Taking a gap year? Here’s what you need to know about money | Taking a gap year? Here’s what you need to know about money |
| (4 months later) | |
| School’s out and the world is your oyster. Each year thousands of school leavers and graduates pack their backpacks and head off to sunnier climes. But it pays to study your finances before you jet off. | School’s out and the world is your oyster. Each year thousands of school leavers and graduates pack their backpacks and head off to sunnier climes. But it pays to study your finances before you jet off. |
| Gap-year travellers need to read the small print on everything from debit card charges to travel insurance to make sure their trip abroad doesn’t turn into an expensive mistake. | Gap-year travellers need to read the small print on everything from debit card charges to travel insurance to make sure their trip abroad doesn’t turn into an expensive mistake. |
| Working in Australia? Get a local bank account before you go | Working in Australia? Get a local bank account before you go |
| If you’re planning to work while you travel you’ll need a work visa and a local bank account to be paid into. Visa fees and terms depend on where you’re going. If you’re aged between 18 and 30 you can apply for a working holiday visa for Australia. You need to do this before you go and it costs AU$450 (£253). | If you’re planning to work while you travel you’ll need a work visa and a local bank account to be paid into. Visa fees and terms depend on where you’re going. If you’re aged between 18 and 30 you can apply for a working holiday visa for Australia. You need to do this before you go and it costs AU$450 (£253). |
| Opening a local bank account can be tricky without proof of address. A TransferWise “borderless” account could be the answer. | Opening a local bank account can be tricky without proof of address. A TransferWise “borderless” account could be the answer. |
| “You can open one online for free in minutes, and you’ll get instant local bank details for the UK, US, Australia and the eurozone, plus the ability to hold money in 40 more currencies,” says Jenifer Swallow at TransferWise. “For students on working holiday visas in Australia, that means getting paid like an Aussie, fuss free.” | “You can open one online for free in minutes, and you’ll get instant local bank details for the UK, US, Australia and the eurozone, plus the ability to hold money in 40 more currencies,” says Jenifer Swallow at TransferWise. “For students on working holiday visas in Australia, that means getting paid like an Aussie, fuss free.” |
| The account comes with a debit card and offers pretty decent exchange rates. You can manage your account via a smartphone app and “freeze” your debit card for extra security. | The account comes with a debit card and offers pretty decent exchange rates. You can manage your account via a smartphone app and “freeze” your debit card for extra security. |
| Take the right plastic | Take the right plastic |
| There are huge variations between banks when it comes to the fees for using a debit or credit card abroad. Most charge transaction fees and foreign loading charges – these can really add up over an extended trip – and they don’t offer the best exchange rates, either. Getting a Revolut card is much better option. | There are huge variations between banks when it comes to the fees for using a debit or credit card abroad. Most charge transaction fees and foreign loading charges – these can really add up over an extended trip – and they don’t offer the best exchange rates, either. Getting a Revolut card is much better option. |
| It gives you perfect interbank rates for most currencies, including Euros and US dollars. ATM withdrawals are free up to £200 a month, after which the fee is 2%. The card works in conjunction with an app and, like TransferWise, you can freeze your card for extra security. | It gives you perfect interbank rates for most currencies, including Euros and US dollars. ATM withdrawals are free up to £200 a month, after which the fee is 2%. The card works in conjunction with an app and, like TransferWise, you can freeze your card for extra security. |
| Our advice is to take at least two prepaid travel cards and keep them separately, one on your person and one stashed in your luggage. | Our advice is to take at least two prepaid travel cards and keep them separately, one on your person and one stashed in your luggage. |
| Another option is online bank Monzo. Account holders can spend in shops and restaurants anywhere in the world in any currency, with no fees. But it’s not so great for withdrawals at ATMs – the fee is 3% if you take out more than £200 a month. | Another option is online bank Monzo. Account holders can spend in shops and restaurants anywhere in the world in any currency, with no fees. But it’s not so great for withdrawals at ATMs – the fee is 3% if you take out more than £200 a month. |
| Carrying cash | Carrying cash |
| You’ll get a much better deal if you order cash online and pick it up. MoneySavingExpert’s Travel Money Max compares rates. Basic safety rules apply – never carry too much and split notes up around your person and in your bags. | You’ll get a much better deal if you order cash online and pick it up. MoneySavingExpert’s Travel Money Max compares rates. Basic safety rules apply – never carry too much and split notes up around your person and in your bags. |
| Insurance | Insurance |
| Standard travel insurance doesn’t work if you head abroad for much more than a month at a time. You’ll need backpacker insurance which will cover an extended period, multiple destinations, and a wide range of activities. Buy 12 months’ worldwide cover for around £150 to £160, while six-month policies cost about £80 to £90. | Standard travel insurance doesn’t work if you head abroad for much more than a month at a time. You’ll need backpacker insurance which will cover an extended period, multiple destinations, and a wide range of activities. Buy 12 months’ worldwide cover for around £150 to £160, while six-month policies cost about £80 to £90. |
| “If you add gadget cover for your phone and devices, you’d probably need to fork out another £100 or more on a 12-month policy,” says Kevin Pratt, consumer affairs expert at MoneySuperMarket. “When you run a quote, find out what activities are covered. Many are included as standard. But if you know you’ll be paragliding or skiing, say, it’s important to check.” | “If you add gadget cover for your phone and devices, you’d probably need to fork out another £100 or more on a 12-month policy,” says Kevin Pratt, consumer affairs expert at MoneySuperMarket. “When you run a quote, find out what activities are covered. Many are included as standard. But if you know you’ll be paragliding or skiing, say, it’s important to check.” |
| Get a good smartphone deal | Get a good smartphone deal |
| Prepare before you jet off. Check your tariff for overseas charges if you’ll travel outside the EU, buy a protective case, invest in a dry bag if you plan to travel by boat, make sure your phone is unlocked (if you plan to use a local sim) and check your handset is insured. | Prepare before you jet off. Check your tariff for overseas charges if you’ll travel outside the EU, buy a protective case, invest in a dry bag if you plan to travel by boat, make sure your phone is unlocked (if you plan to use a local sim) and check your handset is insured. |
| Money | Money |
| Travel insurance | |
| Students | Students |
| Student finance | Student finance |
| Student work | Student work |
| Gap year travel | Gap year travel |
| Gap years | Gap years |
| features | features |
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