the mozo blog

We recently launched a travel money section on Mozo to help Aussie travellers get more spending power when overseas. We tracked down writer and self confessed ‘Money Geek’ Kerry Lotzof in Paris, where she is currently living and working, and asked her to share some of her top tips for managing the budget when living abroad – here’s what she had to say:

Handling money overseas – Guest Blog, Kerry Lotzof

Dream of hiking through South America, making it big in New York or busking your way through Europe on a ukulele? These tips will ensure your savings last the distance, so you can focus on having the time of your life.

Master your ‘tourist impulse’

A little wave of foreign-city anxiety is perfectly normal but how you manage it can mean the difference between being an impulsive (quickly impoverished) tourist and a savvy (cashed up) traveller.

5 practises of savvy travellers

• Take a deep breath
• Pack a muesli bar
• Master the metro
• Use supermarkets
• Avoid tourist menus

Taking money overseas has come a long way since travellers cheques were in vogue (thank goodness.) Their more robust descendants, prepaid travel cards, are a safe and convenient option for travellers but be warned, not all cards are made equal. Before you sign up, double check the card you apply for has the following features:

• Competitive exchange rate
• Cheap top-ups
• Low purchase and ATM withdrawal fees
• Visa or MasterCard credit facility

Also, make sure you compare any specialty travel products with your existing bank cards or frequent flyer reward cards – sometimes the answer is already in your wallet.

Use ATMs wisely

Visiting the ATM less frequently, withdrawing larger amounts at a time and wherever possible using your credit card facility to make purchases will save you a bundle in expensive international ATM fees.

Budget for mad moments

A few hundred dollars a month dedicated to ‘splurging’ will mean you won’t have to deny yourself any of those crazy indulgent experiences. Eating stale bread and backpacker-bequeathed nutella for several days to make up for the cost of a private box at L’Opera may be worth it, but (believe me) it isn’t fun.

Don’t be shy

Some of the best experiences come from sharing meals with locals and being open to visiting (and hosting) fellow travellers. Of course, free accommodation and home cooked meals will save you a bit of money but it’s the life long friendships that make the experience truly priceless.

About Kerry

Kerry is a freelance writer and “money geek” with a clandestine passion for vintage fashion and adventure travel. Currently living and working in Paris, France, she lives by the philosophy that it is possible to have your baguette and eat it too.

 

According to its latest marketing campaign, Commonwealth Bank is “determined to be different”. All shot artistically in black and white, the TV ads feature mildly offbeat situations featuring the likes of a bulldog and a fainting housewife to highlight the bank’s superior customer service. However in light of recent events relating to its ATM glitch, is this shiny black and white veneer a mere facade? 

Let me set the scene. It’s just another sunny, Summer day when suddenly ATMs all over Sydney and Melbourne start spouting free money. A tech glitch has allowed Commonwealth Bank customers to significantly over-withdraw their accounts at Commonwealth ATMs. The glitch was fixed within a few hours, but in that time hundreds had profited from this fortuitous malfunction.

What does the bank that is “determined to be different” do?

For starters, Commonwealth issued a forceful statement, making it sound as though Sydney had all of a sudden morphed into a scene reminiscent of German hyperinflation post WW1, with hordes of desperate punters strolling around Sydney with cash-filled wheelbarrows in tow; “Commonwealth Bank ATMs were not issuing free cash – some customers deliberately and systematically set out to withdraw money that wasn’t theirs.”

The reality is that whilst there were ‘opportunists’ (who really think they can get away with over-withdrawing their own account in front of an ATM security camera?) who knowingly attempted to rip off Commbank, a significant portion of people affected seem to be misguided Commonwealth Bank customers unaware they were committing a crime.

Commbank has since come after them with real gusto. Letters were sent out to affected customers, asking them to make lump sum payments in a very short space of time and threatening them with court action. The ABC reportedly saw a letter to a welfare recipient threatening court action unless a debt of more than $700 was paid within 10 days.

What the Commonwealth seems to be forgetting is that these people aren’t just random street hoodlums – these people are their customers. You’d think in the current era of fierce banking competition (not to mention their current ad campaign) that would count for something. Is taking customers, some of whom are pensioners and welfare recipients, to court a good look for the Commonwealth Bank?

Either way, Ralph Norris and co. seem hellbent on getting the money back ASAP. In my opinion, if Commbank really are determined to be different, they need to reassess their approach. Does the recovery of a few thousand dollars now as opposed to over a few months outweigh the damage to the brand’s image?

That being said, maybe they have succeeded in being different after all. I mean, only Commonwealth could manage to come out of this whole mess looking like the bad guys even though they’re the original victims!