Isn't That Rich Podcast

With spring break just around the corner, it's the perfect time to start planning your vacation. Whether you're traveling abroad or staying closer to home, financial preparation is key to ensuring a smooth and enjoyable trip. To help you get ready, we sat down with Christine Hankins, the President of Retail Banking at Farmers State Bank, who shared her expert tips on how to budget, protect your finances, and make the most of your vacation.

1. Start Budgeting Early: The Importance of a "Fun Account"

Christine emphasizes the importance of starting your travel budget well in advance. "One of the best ways to ensure a stress-free vacation is to set up a separate 'fun account,'" she explains. This could be a basic savings or checking account dedicated solely to your travel or leisure activities. By setting up an automatic transfer from your paycheck to this account, you can save gradually without feeling the pinch.

Christine also shared a personal story about her mother-in-law, who planned a trip to Scotland with a group of teachers. "She’s been paying for the trip over a year and a half with a zero-interest payment plan," Christine notes. "This approach allowed her to budget effectively and avoid any financial stress leading up to the vacation."

2. Explore All-Inclusive Options: Not Just for Tropical Destinations

Many people associate all-inclusive packages with tropical getaways, but Christine highlights that these deals can be found in various destinations, including places like Scotland and New York City. "These packages often offer zero-interest payment plans and cover everything from meals to transportation," Christine says. "It’s a great way to know exactly what you’ll need to save before booking the trip."

Christine, who is an experienced traveler herself, mentions how she used reward points to significantly reduce the cost of a Disney World vacation. "Disney only requires a $200 down payment, and if you book a year in advance, you can make payments over time without any interest. It’s a fantastic way to manage your budget."

3. Consider Travelers Insurance: Peace of Mind for Your Trip

Travelers insurance is often overlooked, but Christine strongly recommends it, especially for more expensive trips. "For a relatively small investment, travelers insurance can cover the cost of your trip if you need to cancel or cut it short due to illness or other unforeseen circumstances," Christine advises. "I’ve seen situations where people didn’t have insurance, and it added a lot of stress when emergencies came up."

She shared a specific example involving Disney’s travel insurance: "If you get sick during your trip and have to cut it short, Disney’s travel insurance will refund the unused portion of your vacation. It’s definitely worth considering, especially when you’ve invested a lot of time and money into your trip."

4. Book Early for Better Deals: Timing is Everything

Christine also stresses the importance of booking flights and hotels as early as possible. "The earlier you book, the better the prices," she says. "If you’re planning a summer vacation, now is the time to start looking. Airlines and hotels usually offer the best rates when you book several months in advance."

She adds, "Some airlines have cheaper flights if you travel on certain days of the week, like Mondays or Tuesdays. Being flexible with your travel dates can save you a significant amount of money."

5. Secure Your Finances While Traveling: Notify Your Bank

Before you head out on your trip, Christine advises that you notify your bank of your travel plans. "This ensures that your debit and credit cards work smoothly while you're away and prevents any inconvenient card declines due to suspected fraud," she explains. "It’s a simple step that can save you a lot of hassle."

Christine recalls a situation where she traveled to Scotland and found that her banking app wouldn’t work. "All I had to do was call the bank and let them know where I was traveling. They could have enabled the app for use in Scotland with just a click of a button."

6. Understand Credit Card Fees: Avoid Unnecessary Costs

Christine also warns about the potential costs of using credit cards abroad. "Credit card companies often charge cross-border fees when you use your card in another country," she explains. "These fees can add up quickly, so it’s important to understand your card’s terms before you go."

Farmers State Bank offers a variety of credit cards, some of which waive international fees, making them ideal for frequent travelers. "It’s important to choose the right card for your needs," Christine advises. "If you travel frequently, a card that waives these fees could save you a lot of money."

7. Get Foreign Currency Before You Go: Be Prepared

For international travelers, Christine recommends getting some local currency before you leave. "At Farmers State Bank, we can order foreign currency for you, usually within a week," she says. "Having local currency on hand can make your arrival smoother, especially when you need cash for things like transportation."

Christine shared a personal experience to highlight the importance of this tip: "When I traveled to Scotland, the first thing I needed to do was take a bus to my hotel. Having the correct currency in hand made that process much easier."

8. Be Smart with ATMs: Know Your Limits

Using ATMs abroad can be tricky, and Christine advises caution. "Not all ATMs accept every type of card, and the fees can be high," she explains. "It’s a good idea to carry multiple forms of payment, including debit and credit cards, as well as some cash and foreign currency."

For domestic travelers, Farmers State Bank offers accounts that refund up to $20 per month in ATM fees. "This feature makes it easier to access your cash wherever you are," Christine notes. "Just remember that most ATMs have daily withdrawal limits, usually around $500, so plan accordingly."

9. Protect Your Valuables: Avoid Pickpockets

Christine also shared practical tips for protecting your valuables while traveling. "Keep your cash, cards, and IDs in different places to minimize risk in case of theft," she advises. "If you’re traveling with someone, consider splitting up your money and cards between you."

She also recommends using secure options like fanny packs or crossbody bags, especially in crowded areas where pickpocketing is common. "When I traveled to Paris, pickpocketing was a real concern, especially on crowded subways," she recalls. "Wearing a crossbody bag kept my valuables safe and close to me."

10. Bring Extra ID: Be Prepared for the Unexpected

Finally, Christine suggests bringing extra identification when you travel, particularly abroad. "If your ID is lost or stolen, having a backup can save you a lot of trouble," she says. "Make copies of your passport and driver’s license and keep them in a separate place from the originals."

She also mentioned new technologies that can help, like storing your ID in a digital wallet on your phone. "It’s not available everywhere yet, but it’s something to consider as more states and countries adopt digital IDs."

11. Consider Travel Programs: Speed Up Your Airport Experience

For frequent travelers, Christine recommends looking into programs like TSA PreCheck, Global Entry, or Clear. "These programs can make airport security much faster and less stressful," she says. "They’re especially useful if you travel often or internationally."

Christine shared an experience where a friend was able to use Clear to get through airport security after losing her ID. "It was a lifesaver for her," Christine recalls. "It’s a good option to consider if you travel a lot."

12. Choose a Community Bank You Can Trust: Personalized Service Matters

Throughout the discussion, Christine emphasized the importance of banking with a community institution that knows and values its customers. "At Farmers State Bank, we prioritize personalized service and community values," she says. "When you call, we answer—no long hold times, just the help you need, when you need it."

Christine is passionate about helping customers prepare for their trips, whether it’s setting up a travel budget, finding the right credit card, or ensuring their finances are secure while abroad. "We’re here to support you every step of the way," she concludes.