This gives them the ability to allocate their money properly and also will prevent them from overspending and getting in severe debt. This reserve can help compensate for problems such as a stolen wallet, cash or credit cards, he said. It also can make up for unexpected expenses such as parking tickets, medical emergencies or loss of necessary items such as clothing or toiletries. But, making a budget is not enough. Travelers must stick to it and not overspend to avoid financial distress after the beach or ski trip is over, he said.
Large debt can be insurmountable for some students.
Another problem students might face is running out of funds. In an attempt to prevent spending too much, students do not budget a realistic amount of money for total travel expenses and end up penniless after the first few days. After students determine the amount of money they are willing to spend on their trip, Gentile suggested cash should be replaced with traveler's checks if possible. Exchanging cash for traveler's checks can be done at several different places. Gentile said students should get traveler's checks from the bank at which they have a checking account.