Summer vacation financial tips
The campgrounds are booked, recreational vehicles are on the roads and barbecues are sizzling. These are sure signs summer has arrived.
Summer vacations can be a long weekend, a two-week vacation or the whole summer off. If you are a local, just living in the Okanagan can feel like a vacation.
Here are tips to keep your finances on pace with your vacation plans: Planning Anticipation and planning are half the fun of a holiday. Your travel agent along with the internet means there is a wealth of information about accommodations, tours, events, and restaurants. Knowing how much things cost before you leave allows you to plan out your spending and ensure you have the money to enjoy your anticipated adventures. Look after money There are many hard-luck stories about weary travellers arriving at far-off destinations only to find their wallets, bank cards or cash have been stolen or lost. Take copies of your passport, credit cards and your driver’s licence. Make sure you have contact phone numbers available in the event of loss or theft. Keep these electronic copies and papers in a separate place. They are invaluable in assisting in the replacement of funds or to supply proof of citizenship and credit card details. Using bank cards Many countries have automatic bank machines that are compatible with Canadian access cards. Find out if your bank has a branch or affiliated institution where you are visiting. This means you can carry less cash and not worry about arriving in a foreign country after banks have closed for the day. Take foreign currency Take a small amount of the foreign currency used in the countries you are travelling to. This way, you will have funds on hand for small purchases, taxis or meals. If you use your credit or debit cards for payments, remember to factor in the cost of the exchange into the foreign currency. This exchange rate is what the credit card company charges and is usually higher than currency exchange rates listed in the paper or found on the internet. Monthly bills While you are away, monthly bills and mortgage payments still need to be made. With telephone and online banking, you can arrange post-dated payments before you leave. Not only does this keep your credit rating intact, but you can enjoy your holiday without worrying about late payments or having high interest charges accrue. Medical coverage When travelling outside B.C., remember to check that your medical insurance covers you and your family. Obtain extra coverage if required. Travel to the United States means you are in a foreign country where medical services are very expensive. Out-of-country emergency medical insurance is a must. Unforeseen events happen and could cause major disruptions to your vacation plans or travels. The Boy Scouts and American Express have it right – Be prepared and don’t leave home without it! Automatic withdrawals Many people have RRSP, TFSA or other investment contributions withdrawn each month. Make sure you organize funds and keep adequate money in your accounts to cover these automatic payments. This prevents unnecessary finance charges and ensures your purchases are made as planned. Enjoy yourself You have worked hard all year to earn your money so make sure you have fun spending some of it. With good planning, you can have a great holiday. Happy summer.
Marion Wahl is a chartered professional accountant. Email: mwahl@wahlcga.com. Phone: 250-7623362.