Millennials continue to spend big on ATMs
Millenials born in the 1980-2000 bracket are spending around $11.3 billion overseas each year, with $183 million spent on international ATM fees alone, Westpac research showed.
According to the 2016 Westpac Travel and Finance Report, the lack of financial knowledge was high in younger adults, who did not consider the price of cash currency conversion against international withdrawal fees.
"The research shows that millennials don't know the cost of using international ATMs, a cost which can quickly chew through their budget," Westpac head of youth and millennial markets, Ashley Gray, said.
"[This] can be reduced though some simple research."
When surveyed, 61 per cent of millennials who used overseas ATMs said they would spend it on food and drink, while 42 per cent would prefer to shop and only 11 per cent would use it for recreational activities.
Of those who used ATMs overseas, they did so around 10 times per trip, incurring large withdrawal fees. A Westpac poll showed that many would only be willing to walk an extra eight minutes to find a free ATM.
"I encourage millennials to thoroughly research their destination in advance and create a daily travel budget that takes into account current exchange rates," Gray said.
"It's important to be realistic when planning a budget."
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