If your children are heading off on their own abroad during a gap year, a pre-paid currency card is safer and gives a better exchange rate than concealing cash or wiring expensive emergency money abroad. It is also cheaper than using a debit or credit card. Here's how to be smart in setting it up.
Register the card in your name and request a secondary card in your child's name. Depending on the company, you'll have to pay a nominal charge for this - about £5. You can then load funds onto the currency card in the UK (online, by phone or even text message) that your child will be able to access overseas. You'll be able to check the card balance in the same way too. Registering online for a currency card takes just minutes and you set your own PIN and password.
European only travel? You'll get better exchange rates with a euro currency card. Only going to America? A dollar only card is best.
The online foreign exchange services - ICE, Travelex, FairFX and Caxton FX and mytravelcash.com - offer the best rates on prepaid cards (July 2014). To compare cards, go to moneysupermarket.com/prepaid-currency-cards.
For more information on currency cards, go to goodhousekeeping.co.uk/money/guide-to-prepaid-currency-cards.
Good Housekeeping, July 2014
