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Financial preparations for you gap year

February 10, 2016

finance, lifestyle

 

Between now and August more than a million 16-24 year-olds are expected explore the farthest reaches of the world.

It’s more common now for young people to shorter skills focussed trips, with the hope of coming back with practical skills that will increase their chances of employment.
Spending up to a year on a journey of self-discovery on the beaches of South-East Asia or the Australasian fruit farms no longer holds as much appeal.

Image: AlphaTangoBravo/Adam Baker

Today, arguably we have the most economically aware young people in Britain for a generation – how could they not be? Well, if they’ve been on that South-East Asian beach for the last few years it’s possible.
At the moment one-in-five young people in the UK are unemployed, and overall unemployment in the UK this year is expected to peak at 2.85m – nearely half them will be 16-24 year-olds.

This doesn’t stop us from donning a backpack and seeking adventure on the other side of the world.However, before you go there are a few financial issue you should consider.

Insurance

Everybody assures themselves that bad things happen to other people. However, no matter how cautious you are, there’s still a chance that belongings can be lost or stolen, or even suffer serious injury.
Quite a scary prospect, especially when you consider that a quarter of “gappers” travel without insurance.
When you do look for tht insurance not only should you shop around, you also need to make sure you get the right sort of insurance.
Standard insurance won’t cover you for a gap year, so you need to look for a specialist insurer who will be able to cover you for arounf £80 for six months, or between £150-£300 for 12 months.

Staying in touch

Sending that message home to mum and dad has never been easier with the internet when you can skype them, but there are lots of international sim card companies out there, that specialise in keeping costs down no matter how far away you are. If you find yourself settled on the other side of the world these SIM companies are just as good for the folks back home to stay in touch with you.

In an interview for thisismoney.co.uk, for Mike Wilson, manager of mobile phones at comparison website moneysupermarket.com, says:

 ”Although a lot is being done by the European Commission to bring down costs for using mobiles in Europe, there is no such action in process when travelling further afield. It is vital consumers are up to speed with the charges they might face.”

So, be wary of the contract you have with your domestic provider deals including text messages, minutes and data download usually become void and receiving calls and texts could be more expensive.

Are you about to go on a gap year or have you just returned from your travels? what preparations did you make? Share your advice in the comments below.

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