Pound-Saving Tips for Your London Vacation

Don’t Pay for the Privilege of Spending Money

Use your ATM card. The easiest and most cost-effective way to obtain British pounds is to use your own ATM card as soon as you get off the plane in London. You’ll probably pay a $3 or $5 fee for each withdrawal, but the currency exchange rate on ATM transactions is one of the best available. Check with your bank to make sure you can use your ATM card in London and also to make certain that there are no other usage fees. Some debit cards or credit card-branded ATM cards incur more fees.

Carry no- or low-fee credit cards. Credit card companies usually apply the best currency exchange rates, but many U.S. banks add a 3 or 4 percent fee for using your plastic outside the United States. Find a credit card issuer that does not add large overseas transaction fees—it isn’t easy, but there are some low-fee cards issued by credit unions and other institutions.

Avoid converted bills. Once you get to London, avoid another credit card trap: dynamic currency conversion. That’s where a hotel, restaurant or shop in Britain offers you the “service” of converting your charges to dollars. The on-the-spot conversion is often at a poor currency exchange rate. Refuse to sign any credit card slip that has been converted to dollars—insist on charges in British pounds.

• Wagamama noodle chain is great for family dining on a budget.
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Meal Deals

Even without unfavorable currency exchange rates, dining out in London is expensive. Here are mealtime value tips:

• London is saturated with sandwich shops that offer familiar between-the-bread selections alongside some particularly British choices like prawns and mayonnaise or egg and cress. Cold carry out food (called “take away” in the local parlance) avoids the 17.5 percent Value Added Tax.
• Take your take away into one of those terrific London parks for a family lunchtime picnic, weather permitting.
• Noodle restaurants are popular with families—the Wagamama chain has multiple London locations.
• Pub food can be a good choice, but the costs and quality vary greatly. Not all pubs admit children, but all are now smoke-free. (Hooray!) 
• Take advantage of prix fixe specials and pre-theater options at otherwise moderate-to-pricey restaurants.
• Traveling with picky eaters? Our then 6-year-old son quickly discovered plain jacket potatoes (baked potatoes) and yummy English Cadbury chocolate bars on his first trip to London. Not the most nutritious combination, but hey, it’s vacation.

Let London Come to You

A well-planned London vacation can be a thing of wonder. An over-planned London vacation is another matter. A flexible schedule allows visiting families to take advantage of serendipitous free events—a band concert in the park, a street performance in a marketplace, a passing parade of mounted royal troops—events that add to your sightseeing day without adding to your sightseeing budget. (Read our review of David S. White’s book, Let’s Take the Kids to London.)