Working out how much spending money to take on holiday is part guesswork, but a sensible estimate stops you running short or carrying far too much. The answer depends heavily on your destination and how you holiday. This guide explains how much spending money you need on holiday and how to work it out. It is general information, not financial advice, so research current costs for your destination and budget for your own circumstances.
It depends on several things
How much spending money you need depends on your destination's cost of living, how long you are away, your accommodation type, and how you like to spend, so there is no single figure. A cheap destination and a self-catering, low-key trip need far less than an expensive city and a lavish one. Understanding that the right amount is personal to your trip, rather than a fixed sum, is the starting point for working out a realistic budget based on your own plans.
Consider your destination
Your destination has a big effect, as costs for food, drink, transport and activities vary enormously between countries and even regions. Researching the typical cost of things at your destination gives you a realistic basis for budgeting. Our guide on finding cheap holiday deals touches on destination costs. Looking into how expensive your particular destination is for the things you will spend on, rather than guessing, is essential for estimating how much spending money you will actually need while you are there.
Think about daily costs
Break your spending into daily costs: meals and drinks, local transport, attractions and activities, and incidentals like tips and souvenirs. Estimating a realistic daily figure for each, based on your destination and habits, builds up a sensible daily total. Thinking in terms of what you will spend each day on the main categories, rather than a vague lump sum, gives a far more accurate estimate and helps you see where your money will go, so you can budget and adjust accordingly.
Factor in your accommodation type
Your accommodation type strongly affects spending money. All-inclusive means most food and drink is covered, so you need less, while self-catering or room-only means budgeting for meals. Our guide comparing all-inclusive and self-catering explains. Accounting for what your accommodation already covers, and what you will therefore pay for separately, is crucial to estimating spending money, as an all-inclusive trip needs far less day-to-day cash than one where you buy all your own meals.
Account for your spending style
Be honest about how you like to spend, as this varies hugely. Some travellers eat out lavishly, drink, shop and do paid activities, while others are frugal, cook, and enjoy free attractions. Your style can double or halve the budget. Considering your own habits and what you actually enjoy spending on, rather than an average traveller's, gives a realistic figure for you. Budgeting for the way you genuinely like to holiday avoids both running short and taking far more than you need.
Research typical prices
Do some research into typical prices at your destination for meals, drinks, transport and the activities you want to do, using guides, reviews and travellers' accounts. Real figures beat guesswork and reveal whether a place is cheap or pricey. Taking a little time to find out what things actually cost where you are going, rather than assuming, lets you build a budget grounded in reality. This research is the difference between a realistic spending estimate and one that leaves you short or with too much.
Build a daily budget
Using your research, build a daily budget by adding up your estimated daily costs, then multiply by the number of days for a total. This gives a clear, realistic figure to work with. Our guide on setting a holiday spending budget covers this in detail. Constructing your budget day by day and scaling it up, rather than picking a round number, produces a spending estimate tailored to your trip, which you can then adjust for contingencies and your comfort level.
Add a contingency
Always add a contingency on top of your estimate for unexpected costs, treats, and emergencies, as things often cost more than planned and you may want to splash out occasionally. A sensible buffer prevents running short. Including extra for the unexpected, rather than budgeting to the last penny, gives you breathing room and avoids the stress of running low. A reasonable contingency means you can handle surprises and enjoy spontaneous moments without anxiously watching every pound.
Do not carry too much cash
While you need enough money, avoid carrying large amounts of cash, which is a security risk and unnecessary when cards are widely accepted. Take sensible cash and rely on cards for the rest, keeping a backup. Our guide on the best way to take money abroad covers the mix. Balancing having enough spending money with not carrying risky amounts of cash, by using a mix of cash and cards, keeps your money both sufficient and secure throughout your holiday.
Track your spending
While away, keep an eye on your spending against your budget, so you can adjust if you are going faster or slower than planned. Many cards and apps make tracking easy. Our guide on how to avoid running out of money on holiday helps. Monitoring what you spend as you go, rather than only checking at the end, lets you stay in control, rein in or relax your spending as needed, and ensure your money lasts the whole trip comfortably. Checking your balance every day or two, rather than only when it feels low, gives you the earliest warning if you need to rein spending in.
How to work it out
To work out your spending money, research your destination's costs, estimate your daily spending across meals, transport, activities and incidentals based on your style and accommodation, build a daily budget, multiply by your days, and add a contingency. Take a sensible mix of cash and cards. This gives a realistic, personal figure rather than a guess. Following this method, rather than picking an arbitrary amount, ensures you take enough to enjoy your holiday without running short or carrying too much.
Build in money for treats and souvenirs
When estimating your spending money, remember to include the extras that make a holiday special, such as souvenirs, gifts, special meals, excursions and spontaneous treats, which are easy to forget in a basic daily budget. Our guide on setting a holiday budget helps. Allowing for these enjoyable extras, rather than budgeting only for essentials, means you can make the most of your trip without anxiously rationing, and ensures your spending money covers the things that turn a good holiday into a memorable one.
In short
How much spending money you need depends on your destination, length of trip, accommodation type and spending style, so there is no single figure. Research typical prices, estimate your daily costs across meals, transport, activities and incidentals, build a daily budget and multiply by your days, then add a contingency. Take a sensible mix of cash and cards, track your spending, and remember to allow for treats and souvenirs. This is general information, not financial advice, so research current costs and budget for your own trip and habits.
Explore more in our Travel Money guides.