Managing your holiday money (+competition)

Mastercard's Cash Passport currency card.

Kiwis are using their plastic more and more on holiday. MasterCard is seeing a surge in the UK thanks to tens of thousands of Kiwis booking accommodation and other services in anticipation of heading over for the Rugby World Cup later this year.

The UK is New Zealanders' third-top destination this year after Australia and the US, according to the MasterCard Consumer Pulse survey.

Wherever you take your money cards this winter, follow these tips for managing your cashflow:

• Use prepaid cards. More travellers are choosing to take prepaid multi-currency travel cards with them, says Peter Chisnall, country manager at MasterCard. They can be used wherever credit cards are accepted to buy goods and services, and also to make cash withdrawals. The great thing about prepaid travel cards is you can lock in your exchange rate, before the dollar drops further. A prepaid card also allows you to keep spending in check as you travel and assess how much spending money you have left. It will help you avoid a financial blowout if you're a spender by nature.

• Download the MasterCard app. It can help you find the nearest ATM anywhere in the world. You can also use it to check your balance, get statements and recharge your balance from your accounts back home if you run out of money for your holiday.

• If given the choice, always pay in the local currency. It's common to be asked if you'd like to pay in the local or your home currency when travelling. Always choose the local currency, says Chisnall. "The bank's exchange rate is almost always more favourable to your wallet than the rate offered by the merchant."

• Take a photocopy or scan of the front of your credit, debit and prepaid cards before you leave. Give a copy to a friend or family member and email the scan to yourself. That way you can access your card numbers from your phone should you need to report them stolen.

"With Zero Liability from MasterCard, cardholders are covered for unauthorised transactions. Just remember not to provide your PIN number to anyone else or store it online," says Chisnall.

• Hang on to your receipts. If you have your receipts it makes it much easier to cancel a payment or be reimbursed by your card provider.

• Read your cards' terms and conditions. This is really in your interest. Kiwis are often unaware of the purchase protection assurance, that covers you against theft or damage of new purchases for 90 days, available on their card or the details of their credit card travel insurance. Each bank's credit card travel insurance is different. It may be all you need for your holiday. But you won't know if you don't read it.

• Carry spare cards. Keep your spare card separate from your main cards so you can use it if your wallet is stolen or luggage goes astray. If your cards are stolen, make sure you report it straight away.

• Take cash with you. One day even street sellers will take electronic payments. For now, however, it's always a good idea to have some local currency.

Finally, if you do come home with a bit of a financial hangover, don't put your head in the sand. Actively manage your money by setting up a budget and curbing your spending until you have the debt under control, says Chisnall. If you formulate a plan and track your spending you will be able to pay the holiday debt off faster.

Win $5000 to spend on a winter break

Accepted anywhere you see a MasterCard logo, your pre-paid Multi-currency Cash Passport is Chip and PIN protected with an added signature panel on the back and can load up to nine currencies on to one easy-to-use card.

Lock in your exchange rates* before you leave, top up your travel money, check your balance, transfer funds between currencies and view your recent transactions online from anywhere in the world. Find out more at: cashpassport.co.nz.

Thanks to MasterCard New Zealand, Living has a Multi-currency Cash Passport pre-loaded with NZ$5000 for one lucky winner. To enter, visit winwithheraldonsunday.co.nz and enter the key word "currency" along with your contact details.

Entries close 5pm on Wednesday, July 29.

* The prevailing exchange rate is locked in for the initial load value only. Subsequent card reloads will be processed at the then prevailing exchange rate on the day of the reload transaction, and will be locked in at that rate.