Industry News from Yes Insurance

A fair proportion of teenage holidaymakers will go away this year safe in the knowledge that their parents will bail them out of any financial difficulty, according to new research.

For every four young people heading abroad, there will be one who can do so without money worries - meaning they can virtually spend as much as they like, Lloyds TSB Travel Money Card has reported.

It added that 38 per cent of parents were well aware of their child's inefficiency with the coffers and that the same amount knew that they would be asked to foot the bill if things went wrong - perhaps in the event of over-spending or covering hospital bills if travel insurance is not taken out.

"Parents are understandably nervous … One way to help with budgeting is not to send them away with too much cash which is a temptation," said company spokesman Phillip Robinson.

Another area where people may overspend is currency exchange.

In order to avoid this, Moneyfacts.co.uk has advised consumers to shop around for the best rates.

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