Maximise Your Miles: Financial Tips for Frequent Flyers

Whether you’re a young Kiwi planning your OE (overseas experience), a family about to embark on that long-awaited trip to Disneyland, or a seasoned business traveller hopping between meetings in Singapore and Sydney, the excitement of travel is unbeatable. But with every adventure comes a bit of financial planning to ensure your holiday memories aren’t clouded by an unexpected hit to the wallet.

Take Jamie, for example, who’s about to head off on his OE to Europe. He’s buzzing with excitement - backpacking through Spain, trying gelato in Italy, and working the occasional bar job in between. But between booking flights, managing foreign currencies, and sorting out travel insurance, Jamie’s starting to feel the pinch. Then there’s the McKenzie family, saving for years to take the kids on the ultimate Disney adventure. Flights, accommodation, meals, and souvenirs are all adding up fast—and they haven’t even boarded the plane yet!

No matter where you’re headed, keeping travel costs down and managing your money wisely can make the difference between a carefree trip and coming home to a frightening credit card bill. That’s why we’ve put together some savvy tips to help frequent flyers—and the soon-to-be frequent flyers—travel smarter, save more, and avoid those pesky fees that can pile up faster than your holiday pics.

Watch Out for Exchange Rates and Foreign Transaction Fees

Whether you’re grabbing a coffee in a Parisian café or buying souvenirs in Tokyo, foreign currencies and fees can sneak up on you. Airport kiosks and convenience currency exchanges are often the worst offenders, offering poor exchange rates and high fees that quickly add up. A better option? Plan ahead by using apps like XE or Revolut to track exchange rates and get your foreign cash sorted before you go. Many banks offer better rates and lower fees for pre-ordering your currency.

Alternatively, consider using a multi-currency card like the Wise card, which allows you to hold multiple currencies at once, lock in exchange rates when they’re favourable, and make purchases overseas without the excessive fees of traditional credit cards. If you are using your credit card abroad, keep an eye on foreign transaction fees—these can be up to 3% of every purchase. 

Another tip: when asked if you want to pay in local currency or New Zealand dollars, always choose the local currency. This avoids dynamic currency conversion (DCC), which tends to cost more. By preparing ahead and using the right tools, you can keep more of your money in your pocket for the fun stuff.

Make Your KiwiSaver Work While You Play

Heading overseas for an extended period—whether it’s for a gap year, an OE, or working internationally—can make keeping up with KiwiSaver contributions tricky, especially if you’re not employed in New Zealand. However, staying on top of your contributions is crucial for ensuring your retirement savings don’t fall behind while you’re off exploring the world.

If you’re planning to be out of the country and unemployed for a while, consider setting up automatic payments to keep your KiwiSaver growing. Even small, regular contributions can make a big difference in the long run, helping you take advantage of compound interest and keeping your account active. Remember, without employer contributions while you’re overseas, the responsibility is all yours to keep things ticking along.

For those working internationally, you won’t be eligible for employer contributions while earning abroad. However, you can still contribute to your KiwiSaver voluntarily. This helps ensure that when you return to New Zealand, you’re not playing catch-up with your retirement fund. 

The good news? Your government contribution (up to $521.43 annually) is still up for grabs as long as you contribute a minimum of $1,042.86 each year (just over $20 a week). So, wherever your travels take you, a little planning will help your KiwiSaver continue to grow, ensuring your future is as bright as the destinations you’re visiting.

If you’re unsure about how your KiwiSaver might perform while you’re overseas, talk to your adviser about adjusting your settings to suit your longer-term plans while you’re out of the country.

Protect Yourself with Travel Insurance

While travel insurance might not be the most exciting part of planning a holiday, it’s one of the most important. If something goes wrong—like a medical emergency, lost luggage, or a sudden trip cancellation - travel insurance can save you from facing hefty costs and stressful situations.

1. Medical Emergencies

Healthcare abroad can be expensive, especially in countries like the US. Travel insurance covers medical expenses, so if you get sick or injured, you won’t be stuck with a massive bill.

2. Cancellations and Delays

If your trip is cut short or cancelled due to unforeseen events, insurance can help recover costs like non-refundable flights or accommodation. It gives you peace of mind, knowing you won’t lose out if plans suddenly change.

3. Lost or Stolen Belongings

Whether your luggage goes missing or your belongings are stolen, travel insurance ensures you’ll be reimbursed for essential items and valuables. No need to worry about replacing your things out of pocket.

A good travel insurance plan gives you the confidence to enjoy your trip, knowing you’re covered if the unexpected happens.

Travel Hacks: Secrets of the Savvy Traveller

Now that you’ve got the financial basics down, let’s arm you with some of the best travel hacks to save time, space, and a bit of money along the way.

1. Search for Flights in Incognito Mode

Ever notice how the price of flights seems to magically rise every time you check them? That’s no accident. Websites track your search history with cookies, and seeing you repeatedly check the same route signals demand, which can drive prices up. To avoid this, use incognito mode or private browsing when searching for flights. This way, you’re more likely to see the lowest prices, uninflated by sneaky algorithms.

2. Roll, Don’t Fold Your Clothes

Packing can be a game of Tetris, especially if you’re trying to avoid checked luggage fees. One of the oldest but most effective travel hacks is to roll your clothes instead of folding them. Not only does this save space, but it also helps reduce wrinkles. Bonus tip: stuff socks and small items inside your shoes to maximise every inch of your suitcase.

3. Track Your Luggage with an AirTag (or Similar)

Lost luggage is the traveller’s worst nightmare. To ease the anxiety, consider popping an Apple AirTag or Tile tracker into your checked luggage. These handy devices let you track your bag’s location from your phone, giving you peace of mind that it’s on the same journey as you. Some airlines may prohibit the use of trackers so it is best to check the rules and regulations of the airline(s) you will be flying with just to be safe.

4. Take Photos Before Driving Off in a Rental Car

Planning to rent a car on your travels? Make sure to do a thorough video or photo walkthrough before leaving the lot. Capture every angle—inside and out—focusing on any scratches, dents, or marks already on the vehicle. This helps protect you from being blamed (or charged!) for damage you didn’t cause. It’s a simple step that could save you from a hefty repair bill later.

5. Choose the Best Days to Fly

Timing is everything. Did you know that flights are often cheaper on Tuesdays and Wednesdays? That’s because these mid-week flights are less popular with both business and leisure travellers. Try to book your departures and returns on these days to save a decent chunk on your airfare.

6. BYO Water Bottle

Airport water can be shockingly expensive. Instead of buying overpriced plastic bottles after security, pack a reusable water bottle and fill it up at a drinking fountain once you’re through security. Many airports now have designated refill stations, so you can stay hydrated without breaking the bank.

7. Download Offline Maps

If you’re travelling somewhere unfamiliar, it’s a good idea to download Google Maps offline before you leave. Not only will this save on mobile data, but it’ll also make sure you can navigate confidently even in places with poor signal. Perfect for those winding alleyways in Europe or the middle of nowhere on your road trip!

8. Keep a Power Bank Handy

Whether it’s your phone, tablet, or camera, running out of battery on the road is a hassle no one needs. Keep a portable charger (power bank) with you to ensure your gadgets stay juiced up. It’ll save you the frantic search for a power outlet at the airport or in transit.

9. Consider Using an eSIM

Want to save yourself the worry of being hit with those hefty data roaming charges? eSIMs are a cost-effective alternative that could save you some extra bucks. Get started with apps like Airalo that make it easy for you to stay connected with loved ones while you travel. 

Take Off with Confidence

At the end of the day, the best travel memories aren’t about how much you spend, but how much you get out of your experiences. By managing your money smartly, packing efficiently, and avoiding unnecessary fees, you can focus on making memories, not managing expenses. Bon voyage - and happy saving!