Parents ill prepared for half term holiday spending spree

Millions of British families heading off on holiday for half term this week could find themselves out of pocket, because of poor budgeting and lax security, according to a new report from Lloyds TSB.

According to the study, one in five parents (20 per cent) plan on taking their children abroad this half term and many plan to take over £1,000 spending money. However, two fifths (41 per cent) admit they have trouble budgeting and will probably end up spending more than they intended, while a fifth (17 per cent) don't set a budget in the first place. A further seven per cent do set budgets but fail to stick to them.

The research also revealed a haphazard attitude to security amongst many families. Half (53 per cent) said they would take cash abroad, rather than use travellers cheques, debit or credit cards, but many run the risk of losing their money because they don't store it safely. One in ten (13 per cent) said they would hide cash around their hotel room, while eight per cent keep it in a suitcase. Less than half (46 per cent) make use of the hotel safe.

To help overcome the problem of budgeting and security, Lloyds TSB has introduced a pre paid travel money card. The card is available in US Dollars and Euros and can be preloaded before a holiday, or topped up while abroad. It can be used in locations displaying the Visa sign and because it is not linked to a bank account and has no overdraft facility it's a safe way for people to carry money, and a good choice for people who want to stick to a budget.

Jatin Patel, head of travel and international payments, Lloyds TSB, said: "Keeping money safe and sticking to a budget can be difficult at the best of times, but when you're on holiday and in unfamiliar surroundings, it can be even more of a challenge.

"The Travel Money Card could be a real help to families going abroad this half term. Because it can be pre loaded customers only need to spend what they are comfortable with and if it is reported lost or stolen, the money can be credited to a new card and customers won't be left out of pocket."

Both Lloyds TSB and non-Lloyds TSB customers can apply for a Travel Money Card. The card can be preloaded with up to £3,000 in either US Dollars or Euros and costs £7.50 which is 25 per cent cheaper than a similar product offered by the Post Office.

The card can be topped up with a minimum of £50 at home or from overseas. Each card is valid for two years, allowing travellers to save unused cash for their next holiday, or to put aside money each month, in advance of a holiday.