Avoid hidden charges, other money-saving tips for the holidays
MANILA, Philippines — If you are like any regular employee in the Philippines, chances are that you earn a fixed amount of income in the form of salary every month and the only source of significant extra income during the holidays is your 13th month pay.
If you work for a big, established company, you might also be receiving a bonus, depending on your work performance for the past year. So, if you get carried away by all the shopping sales and promos that are going on every Christmastime, you might spend all that extra money on gift-giving, food, and personal rewards, such as clothes, shoes, bags, gadgets, jewelry and accessories, and zero savings by the time the holidays are over and you’re back to the grind.
In a country like the Philippines, which owns the distinction of having the longest Christmas celebration, it is easy to get caught up in the system and end up broke. Global financial technology company Wise shared some money-saving tips to help manage your finances better for the rest of the holiday season:
1. Set a realistic holiday budget
Start by creating a clear budget for all your holiday expenses — gifts, decorations, food, and travel. Knowing how much you can spend helps prevent financial surprises, especially during the season of flash sales and unplanned gatherings.
Tracking each expense and including a buffer for last-minute reunions or extra gifts will keep you on track. Freelancers, who may experience fluctuating income, should also set aside a buffer for unexpected costs.
2. Save on international money transfers
High fees and poor exchange rates can eat into your earnings when sending money to your loved ones or receiving international payments.
A recent Wise survey found that three out of five of Filipinos surveyed engage in international transactions at least once a month. About 21% of them are aware of hidden fees like exchange rate mark-ups.
Many consumers overlook the two main costs associated with foreign currency transactions — the transaction fee and the exchange rate. Often, providers will offer a relatively low or zero upfront transaction fee, but mark up the exchange rate instead, which means customers pay more than they should due to the unfriendly rate, whether it’s transferring money abroad, making international payments or exchanging money from one currency to another.
For OFWs and Filipinos abroad, the fintech offers a more affordable and transparent option. When transferring money overseas, customers pay a single upfront fee, and the exchange rate they pay is the mid-market rate seen on Google — with no hidden charges.
In addition, Philippine-based freelancers can also use it to receive payments in multiple currencies with zero fees, and easily withdraw funds from their Wise Account to a local bank account or digital wallet like GCash or PayMaya, enjoying a fast and seamless experience.
3. Opt for group gifts and shop smart online
Online shopping has become a go-to for Filipinos, especially during major sales like 11.11 and 12.12.
Many shoppers are drawn to international sites that offer unique products or better deals. However, buying from foreign retailers often comes with hidden fees, including foreign transaction charges and unfavorable exchange rates, which can inflate your total spend. These extra costs add up, especially when you’re purchasing gifts for several loved ones.
One way to manage these expenses is by pooling resources with your family or friends for a meaningful group gift or organizing a “Monito Monita” (Secret Santa) exchange to keep gift-giving fun and affordable. Set a budget limit to avoid financial strain and focus on practical, thoughtful gifts, like a kitchen gadget for your parents or a shared holiday experience.
To save more during your holiday shopping, it's important to be mindful of the fees your card provider charges. Traditional credit cards often come with 1% to 3% foreign transaction fees and unclear exchange rates, which can add up.
Another thing to watch out for is Dynamic Currency Conversion (DCC), where merchants can offer to charge you in your home currency instead of the store’s local currency at checkout. While paying in your home currency, the Philippine peso, may seem more convenient, it often comes with hidden fees and unfavorable exchange rates, so make sure always pay in the local currency.
One way to avoid foreign transaction costs is to use a service that offers transparent, low fees, like the fintech's multi-currency account. Its users can shop from international retailers and pay in local currencies at the mid-market exchange rate. This means no hidden fees and a clear understanding of what you’re spending. It’s a simple way to make your money go further this holiday season.
4. Cut down on holiday travel expenses
The holiday season is a cherished time for many Filipinos to reunite with family or take a well-deserved break. But as travel expenses can quickly add up, especially for international trips, it’s important to find ways to stretch your budget.
Booking flights and accommodations early is a great way to secure the best deals. If you're planning to travel abroad, choose a card that can be a useful companion that can be used in many countries and offer mid-market exchange rate without hidden fees.
The holiday season is all about celebration and family, but it doesn’t have to come at a high cost. By planning your budget and being mindful of your purchases, you can maximize your savings while still enjoying the festivities. Follow these tips to keep your spending in check and have a financially stress-free holiday season.
Wise is licensed and regulated by the Bangko Sentral Ng Pilipinas (BSP) and ensures full compliance with local regulations.
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