The Salary Calculator

Financial prepping for summer holidays

by Madaline Dunn

As the sun finally begins to emerge from behind the clouds, summer is on its way. So, it’s likely that you’ll be thinking ahead to possible getaways, whether that’s relaxing by the beach, cocktail in hand, exploring ancient city ruins, or hiking up a mountain.

Financial prepping is key for ensuring you have enough saved up to really enjoy wherever you’re visiting, and get the most out of your holiday.

This week, at The Salary Calculator, we’ll run through:

• Helpful budgeting tips to get you ready for your break
• Weighing up holidaying at home or abroad
• Holiday homes, hotel rooms and camping
• Finding free and discounted activities

Helpful budgeting tips

While inflation is currently at a high point (10.1 per cent) and causing continued financial concern for many, predictions are that it’s due to fall below double digits. Likewise, energy prices are also predicted to drop by July. Considering those in the UK have been hammered with high prices as of late, the gradual ease could leave you with more in your pocket than expected, which could go toward your holiday budget.

According to research, over 70% of the UK’s adult population currently do not have a budget plan, regardless of whether for a holiday or more long-term goals. However, budgeting can help you figure out how much you spend each month, areas you can cut back, and, crucially, help you can realistically save.

There are plenty of apps that can do the hard work for you, too. As outlined in our previous article, apps like Money Dashboard can help you pinpoint overspending and categorise spending, while Hyperjar provides you with specific jars for different savings purposes.

To put that into real terms, the former, in collaboration with the University of Edinburgh and Harvard Business School, found that new Money Dashboard users typically saved 14% of their discretionary spend in the first month.

Once you’ve identified key areas where perhaps you’re overspending and you’re looking to increase your holiday savings further, some of the below tips could help you cut back in ways you hadn’t thought of:

• Meal prep: planning your weekly meals ahead of time means that not only do you shop with purpose and better consider brand prices, but you’re also less likely to be tempted by takeaways and eating food out.
• Invite friends and family over to your home rather than going out for drinks. Research shows that it’s far cheaper to drink in rather than out; in fact, statistics from the Office of National Statistics show that alcohol is three times cheaper in supermarkets, so there are lots of savings to be made.
• Switch supermarkets: There is a huge range of supermarkets in the UK and plenty of fantastic budget choices. Aldi and Asda have both stolen the crown for the top-budget supermarket multiple times.
• See whether or not you can pay less on bills and subscriptions. With regard to bills, price comparison sites are your friend, and once equipped with the figures, advocate for yourself by negotiating with your supplier.

More and more people are employing this approach, too. A 2022 report by GlobalData, for example, found that 40% of UK adults planned to cut back on shopping in order to go on holiday this summer.

Holidaying at home or abroad?

A key decision that will hugely impact your financial preparation for your summer holiday is whether or not you’ll stay at home or travel abroad.

If holidaying abroad and travelling to Europe via the Eurotunnel can save you a big chunk of money, it’s also far more environmentally friendly. Eurostar, for example, estimates that taking the train from London to Paris saves more than 90% of the carbon emissions per economy-class passenger produced by flying. By travelling via the Eurotunnel, you also don’t need to worry about paying extra for luggage – so there are even more savings to be had there.

If flying is the only option, it’s likely you’ll be feeling a little concerned about the price of flights; after all, a number of factors have sent them skyrocketing, including high demand following the pandemic, as well as high inflation and fuel prices.

When you are looking for flights, though, make sure you clear your cookies. Many airline sites use cookies to monitor what kind of flights you’re searching for and then, through dynamic pricing, hike the prices up. Clearing your cookies means that they don’t have this data to inflate flight prices.

It’s also worth looking at what apps are active in the area you’re visiting. BlaBlaCar, for example, allows you to book into a carpool, which can be great for solo travel from a social aspect and can help with savings too. The same goes for EatWith, through which you can eat with locals as part of groups and can help with saving on eating out.

Holiday homes, hotel rooms and camping

Another factor bound to impact your holiday financial prepping and planning is where you plan on staying, whether a holiday home booked through a site like Airbnb, a hotel or a campsite.

Research from TripAdvisor shows that holiday rental properties can be up to 64% cheaper for a one-week stay when compared with hotels. This is especially true if you’re travelling in a group. One of the most popular sites to access such properties is Airbnb, for which there are also discounts and promo codes.

With regard to the price of hotels, data from Hopper shows that prices in the US averaged $212 per night in January 2023, 54% higher than the previous year, and summer is likely only to push prices further. While prices will vary widely depending on where you visit, globally, inflation and supply chain problems mean that hotels are, across the board, more expensive. So, it’s something worth bearing in mind when financially planning for your summer holiday.

While so-called ‘staycations’ have typically been the cheaper holiday option, in recent years, they have increased in price. According to Travelodge, shorter multi-location trips can help make things more affordable.

Camping is another option for those who want a stripped-back low-cost holiday in nature. ‘Glamping’ alternatively can offer the same, albeit with a few more frills.

Making the most of free and discounted activities

According to research by Staysure, UK holidaymakers in 2022 budgeted for £420 per person to spend while on a one-week holiday, which included money for activities. In the current climate, that’s quite a bit to save, and while it’s likely that you’ll want to spend some money on activities, doing your research ahead of time can mean that you unlock a whole range of free and discounted activities.

Festivals, museums, craft fairs and outdoor concerts are all great options that often cost little or no money. Likewise, make sure to utilise your concession status if you have one. There are also plenty of apps that can help you along the way, including:

• Roadtrippers,
• Fatsoma,
• Meetup.

Tags: abroad, holiday, holiday money, holiday travel, savings

Holiday deals, discounts and deposits

by Madaline Dunn

There are no two ways about it, for most people, January is one of the hardest months of the year, with February following close behind. In the months following Christmas, people are often feeling tired, tight on money and just generally a bit dismal. However, a good way to banish the winter blues is to find something to look forward to, such as a little (or big) getaway.

At The Salary Calculator, we know that it can be challenging to find a good deal when it comes to booking a holiday – you don’t want it to cost you an arm and a leg. So, below, we’ll walk you through the following:

• Our top holiday saving and low-cost holiday tips
• Some of the firms offering low-deposit options for holidays
• Some good holiday deals and places to compare deals
• Tips for avoiding holiday scams

Holiday saving & low-cost tips

Thinking about the total cost of a holiday can be a bit overwhelming, so you might feel tempted just to wing it and hope for the best. However, to ensure that everything goes to plan, it’s best to break down everything that you’re likely to need and make sure you set aside enough money so that you can enjoy your holiday to the fullest.

While you may have thought of the basics, such as accommodation and travel costs, make sure to also include the following in your list:

• Travel insurance – to cover you for any mishaps or lost luggage,
• Travel money and any currency exchanges you may have to sort out,
• Toiletries for your trip, including sun cream, so your holiday is not ruined by singed skin,
• Any new holiday clothes or swimwear you might be required to purchase,
• Whether you’ll need to hire a car once you’ve at your destination – don’t forget about car insurance too,
• Whether you’ll want to travel in and around the place you’re visiting and how much this is likely to cost,
• Entertainment costs,
• Food and drink costs – whether you’re planning on buying it at the supermarket or eating out.

Once you’ve identified the key areas you’ll be saving for, there are a number of ways you can then proceed with your savings mission, whether that’s in little ways, like putting your spare change in a jar each week or opening up a savings account. Why not use a savings or budget calculator, too, to make things even more straightforward for yourself?

Savings can also be made in other ways, for example, by booking your flights in advance. According to Expedia, international flights booked four or more months in advance end up saving people around 20% off their fights when compared with those booked closer to the flight, like two months prior. The same goes for train tickets if you arrange a getaway a little closer to home. Likewise, when flying with a group of friends or family, you might be tempted to pay extra to get a seat next to your group, however according to research by MSE, all airlines, aside from Ryanair, always aim to allocate group seats together – this can be further guaranteed by checking in to the airport as soon as possible.

Likewise, The Civil Aviation Authority (CAA), the aviation regulator, says airlines should “aim to sit parents close to children” – if this isn’t possible, they should not be separated by more than one aisle or more than one seat row.”

Firms offering small deposit options

In the months following Christmas, there is always an influx of holiday bargains to be had, and there is a wide range of companies offering small deposit options:

• EasyJet’ offers holidays with a £60pp deposit, a 23kg luggage allowance and an option to pay in instalments.
• First Choice offers a low deposit scheme to help those looking to go on holiday spread the cost of their getaway even if they don’t have the money at the time of booking. Its offerings start as low as £60pp.
• TUI also offers low deposit holidays with prices starting at £50pp.
• Jet2holidays offers customers the ability to pay a £60pp deposit to secure their holiday and then pay the balance ten weeks before they jet off.

Finding good holiday deals

The best way to find the perfect holiday deal for you is by first checking out comparison sites. Skyscanner is a good site to visit if you’re looking to find the cheapest airline flights. Kayak is similarly a good starting point for finding both flights and hotels. Likewise, it’s always work checking out TravelSupermarket.

If you’re looking for sites that offer legitimate flash sales, check out Holiday Pirates or Travelzoo. However, you’ll also likely find good deals if you plan ahead, as many places offer early booking codes or discounts.

Likewise, who says that a holiday has to be abroad? These days, more and more people are opting for a staycation rather than travelling internationally. There are a number of companies offering affordable getaways in the UK, including:

• My Seaside Luxury, which offers a range of affordable sea-view apartments
• UniversityRooms.com allows you to stay in student accommodation, in some cases, for as little as £90 for en suite doubles, for those looking for a budget trip in a university town like Oxford or Cambridge.
• Malmaison similarly has hotels in 16 UK cities, and offers a £75 a night stay across 13 of these locations.

Watch out for holiday scams

Lots of people are keen to get away at this time of year and, in the cost of living crisis, are trying as hard as they can to identify the best deals. Statistics show that 25% feel they’ll be unable to afford a holiday without a good deal. Of course, when people are desperate for good deals, they’ll be people who take advantage of that, and charities are warning that holiday scams are on the rise.

A recent poll by Opinium found that one in ten people would book a holiday through an unknown provider if it meant paying less. Considering these statistics, it’s important to stress that when booking a holiday, you make sure that the company is legitimate and verified. The best tip here is to go with your gut, if you feel like something feels dodgy, for example, the links look suspicious, or the deal feels ‘too good,’ trust your instincts. Likewise, paying with a credit card can add another layer of security.

Tony Neate, CEO at Get Safe Online, outlines: “As the cost of living rises, we want to help protect everyone’s hard-earned cash and urge people to stay alert when it comes to booking a holiday. Trust your instincts and remember: if a deal looks too good to be true, then it probably is.”

Tags: holiday, holiday travel, savings, Travel

Foreign currency and exchange rates in 2022

by Madaline Dunn

After two years of lockdowns and travel restrictions, many will be looking at summer 2022 as the opportunity to finally escape and go on the holiday they’ve dreamt of for so long. That said, when it comes to travelling abroad, there’s a lot of factors to consider – one of them being foreign currency.

Perhaps you’re a little rusty when it comes to exchange rates, or maybe it’s the first time you’re leaving the country; after all, nearly a quarter of Brits have never been on a plane, and one in ten have never left the UK. Whatever the reason, if you’ve got questions about foreign currency, at The Salary Calculator, we’re here to answer all your burning questions. In this article, we’ll explain:

• How the pound is looking against the euro and the dollar
• Whether you should buy foreign currency in advance and what the risks are
• Top tips for securing the best exchange rate and avoiding charges

The pound versus the euro and the dollar

Exchange rates are in constant fluctuation, and a wide range of factors can affect them. Everything from political stability, interest rates and inflation to public debt, speculation and money supply can make a currency go up or down in value.

When it comes to the GBP/USD rate, over the last five years, it has been as high as $1.4328 and as low as $1.1492. That said, currently, the exchange rate is closer to the top-end of the trading range, and the higher it is, the cheaper it is to buy dollars with pounds.

Meanwhile, the GBP/ EUR rate, in 2021 and the beginning of 2022, has also been trading at the high end of its 5-year trading range.

Buying currency ahead of time: The advantages and risks

In some situations, when buying currency, it can be advantageous to plan ahead of time. In cases where you want to exchange large amounts of money, or you’re looking to purchase a currency that’s slightly more obscure than the euro or dollar where the exchange operator may have to order it in, buying in advance could be a good idea. That said, for ‘exotic currency,’ waiting until you arrive at your destination could be a better idea, as local rates are usually better.

You may also be thinking about buying your currency ahead of time in case the pound weakens. However, it’s important to keep your finger on the pulse when it comes to buying currency and check for updates on the exchange market. This can be done at XE.com, where you’ll be able to access live updates on the pound’s value against other currencies. Starting this research around a month before you’re due to head off is a wise idea. If, for example, you notice a trend of the rate steadily going down, buying then and there could help you get the most from your money. A safer bet, though, is to buy half of your travel money before and half later.

For trips where you’re unlikely to need to use cash, to avoid this altogether, it might be worth using a no foreign transaction fee travel card to pay for your purchases.

Tips for getting the best exchange rate and avoiding charges

There are some dos and don’ts when it comes to exchange rates and foreign currency, and below are some of our top tips.

Don’t buy currency at the airport

This is the number one way you will lose out when buying currency. Airport kiosks offer the worst holiday money exchange rates across the board, and they do this because they’re charging you for the convenience. If you’re up against time, or perhaps your trip is a spur of the moment escape, ordering your currency online and picking it up at the airport will help you avoid terrible exchange rates.

When abroad, pay in the local currency

Once you’ve flown to your holiday destination, make sure, when given the option, you choose to pay for purchases in the local currency. This will allow you to avoid both poor exchange rates and currency conversion fees.

Make sure to shop around

There are lots of foreign currency providers in the UK, so it’s worth comparing rates, even if the difference in exchange rates isn’t huge, you can still save a little.

Avoid using your credit or debit card for purchases abroad

When you use your card abroad, it’s likely your bank will charge you a non-sterling transaction fee (usually around 2-3%). Alongside this, you may be hit with additional fees for withdrawing cash and interest on top of the withdrawal. Some cards  charge between 50p and £1.50 for transactions on top of their normal exchange rate charge. Banks who are the culprits for this include Lloyds, TSB and Halifax.

Tags: exchange rates, Foreign Currency, holiday, holiday money

Travel insurance tips this summer

by Madaline Dunn

As the summer goes on and more places open up, the prospect of finally going on holiday is incredibly exciting. That said, with policies around travel changing all the time, it’s also understandable to feel concerned that things might not go according to plan.

At The Salary Calculator, we’ll make sure that you’re all clued up when it comes to travel insurance this summer so that you can take a vacation stress-free.

This article will walk you through:

• What should you look for when choosing travel insurance?
• What situations are not covered by travel insurance?
• What happens if you catch Covid?
• What happens if the NHS app pings you?

What to look for when choosing travel insurance

Luckily, more providers are now offering covid-related travel insurance after initially distancing themselves. Now, there’s a wide range of providers to choose from, but there are a few different aspects to look out for when making your decision.

When searching for travel insurance, ask yourself:

• Does the provider offer coverage if I test positive for Covid?
• Does the provider offer curtailment cover?
• Does the provider offer coverage if I lose a loved one due to Covid?
• Does the provider offer coverage if I miss my flight because my required Covid test has not returned results in time for my getaway?
• Does the provider offer medical cover if I fall ill with Covid?
• Does the provider offer protection from the Foreign, Commonwealth and Development Office (FCDO) travel advice changes?

Equally, to ensure that covid doesn’t catch you out, it’s best to keep updated with any rule changes and travel guidance. So, before booking a holiday, it’s wise to check in with the UK’s traffic light system.

It’s also important to remember that just because a country is on the UK’s green list, you may not be allowed entry as a holidaymaker. Checking the Foreign Office website and checking in with a country’s UK embassy website will keep you in the loop.

When am I not covered?

There are some situations where your travel insurance won’t offer coverage. If the FCDO changes its travel advice to warn against all travel, holiday providers will likely cancel and refund your trip. That said, while policy providers covered cancellation based on FCDO advice before the pandemic, now fewer policy providers are doing so. This will vary depending on your provider, so it’s important to check the details.

Also, be wary of accepting vouchers or Refund Credit Notes (RCN) from airline and holiday companies for cancellations. If you do, you can’t claim from your travel insurance cover as this is viewed as a double claim.

Additionally, you won’t be covered for ‘disinclination to travel’, which essentially means you have personally made the decision not to travel. So, for example, if you’re due to travel but hear that pandemic cases are rising in the area you are staying, you no longer wish to travel and cancel your holiday, you won’t be covered. Equally, if your hotel informs you that some of its facilities will be closed due to Covid, and as a result, you no longer wish to travel and cancel your holiday, you won’t be covered here either.

Am I covered if I catch Covid?

While coverage will vary from provider to provider, there are quite a few out there that offer Coronavirus trip cancellation cover. So, if you or a household member falls ill with Covid within 14 days of your holiday, and you have to cancel, you will be covered.

Some providers offering this coverage include:

• Co-op
• Asda
• Nationwide
• JustTravelCover
• Staysure

Likewise, if you have booked activities for when you are on holiday, and they are disrupted due to Covid, there is Coronavirus excursions cancellation coverage.

What happens if I’m pinged

Recently, more and more people are being ‘pinged’ by the NHS app. So much so, the phenomenon has been dubbed the ‘Pingdemic,’ with record numbers reaching 689,313 in one day at the end of July.

So, it’s understandable to be concerned that your holiday may be jeopardised by coming into contact with someone who has tested positive for the virus.

If you do find yourself pinged before you set out on holiday, you should identify whether or not the Test and Trace service is instructing you to isolate. While you do not legally have to isolate yourself if you have not received instruction, it is advised to do so. Subsequently, most providers will offer cover for ‘advised’ isolation. Staysure, for example, offers cancellation cover if you are unable to travel due to receiving contact from Test and Trace.

Tags: holiday, Travel, Travel insurance

US Government shutdown

by Admin

I’m sure most people will have heard of the shutdown of the US Government which started on 1st October, due to a disagreement about whether or not to raise the “debt ceiling” (in short, the amount of money the government can borrow to pay for things it has already agreed to pay for). As a result of the shutdown a large number of government employees are on unpaid leave or working reduced hours and much government work is not being done.

One impact of this shutdown which may affect British tourists is that a large number of attractions are federally funded – that is, they are operated by the central US Government. An example of this is the National Park Service, which runs National Parks around the country. Since the shutdown began, all National Parks have been closed, preventing tourists from being able to visit. Some of these are what you might expect “Parks” to be, like the natural beauty at Yosemite, but others are famous monuments like the Statue of Liberty. Tourists are finding that even if they bought a ticket before the shutdown, on scheduled tours for places like the island of Alcatraz or Pearl Harbor, they have not been able to make the visit as planned.

For those who have booked a short holiday to the States, waiting until the shutdown reaches its conclusion and the parks reopen is not an option. If you find yourself in such a position, you can investigate other tourist attractions which may still be open. For example, while National Parks are closed, State Parks (those operated by the state they are in, rather than by the central government) remain open. I spoke to one couple who had planned to see the giant Californian redwoods at Muir Woods National Park – with the park closed they had to make new plans but were able to go instead to Armstrong Woods State Natural Reserve, which was open as usual, and see the trees they had hoped to see!

Tags: debt ceiling, holiday, National Park Service, NPS, tourism, US government shutdown, usa