Debit card users 'should try dollar-cost averaging when travelling'

By Mozo ·

Aussies who are planning to use their debit cards while overseas may want to protect themselves against fluctuations in currency values by trying dollar-cost averaging, according to one expert.

Finance writer Anthony Keane noted in an article for National Features that purchasing money for a trip abroad all at once or relying on ATMs can be a risky option.

"Borrow a strategy common to the investment world," he advised: "It's called dollar-cost averaging and basically means buying a bit now, a bit more a bit later, and a bit when you go."

He explained this spreads the risk and means jetsetters are unlikely to be stung by any unexpected drops in the value of the Australian dollar.

By having currency purchased at a variety of different times, Aussies can still take out money using their debit card while overseas if they wish, but will not be caught unawares if something unforeseen happens.

This comes after credit union Community CPS Australia warned travellers using their debit cards abroad not to purchase goods or services using public computers because of the risk of online fraud.

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