Your Money: How to manage your sunshine spending

THIS summer could be tough on holidaymakers’ wallets, with rising living costs and sterling’s fall putting a squeeze on their pockets.

So how can you supercharge your spending money?

Here are some suggestions to help you have your best vacation in years:

Plan a budget

Researching costs and planning ahead – perhaps by setting a budget for each day you’re away – could help to stop you overspending.

Choose your plastic wisely

While paying by card can be convenient, the costs can soon mount up overseas. So check in advance how much your card will charge.

Be careful when and where you change your cash

Make the most of online tracker services that will keep an eye on rates and alert you when they improve.

Waiting to exchange your pounds for holiday cash at the airport can also be expensive.

Where will your money go further?

If you’ve not booked your destination yet, it might be worth considering places where the pound could go further.

Andrew Brown, of Post Office Travel Money, suggests Turkey, Mexico, Malaysia, China and Jamaica could be good bets.

Avoid spending pitfalls

In shops and restaurants abroad, if you’re offered the option of paying in pounds, be wary of the exchange rate.

Ensure you’re insured

Make sure your policy suits your needs, such as covering certain sporting activities while you’re away.

Sort your insurance early

If you’ve just forked out hundreds or even thousands on a dream trip, make sure you will be covered if you’re forced to cancel.

More than half of holidaymakers are giving up valuable cancellation cover by arranging their travel insurance at the last minute.