Travel Travel Budgeting & Financial Planning 5

Question 1

You have $3,000 for a 10-day trip. After booking flights ($600) and accommodation ($900), what daily budget remains for food, activities, and transport?

Accepted Answer

$150/day

Answer

$3,000 - $600 - $900 = $1,500 remaining ÷ 10 days = $150 per day.

Question 2

Which type of travel insurance add-on specifically reimburses you if you must cancel a trip for ANY reason, not just covered reasons like illness?

Accepted Answer

Cancel for Any Reason (CFAR)

Answer

Cancel for Any Reason (CFAR) is the most flexible — and most expensive — cancellation coverage, reimbursing 50–75% regardless of why you cancel.

Question 3

A traveler is deciding between staying in an Airbnb with a kitchen ($90/night) vs. a hotel ($75/night). If cooking saves $40/day in meals versus eating out, which is financially better over 7 nights?

Accepted Answer

Airbnb is cheaper by $175

Answer

Airbnb costs $105 more in lodging (7×$15) but saves $280 in meals (7×$40), netting $175 in savings over the hotel option.

Question 4

What is the primary financial advantage of booking 'refundable' flights and hotels even when they cost more upfront?

Accepted Answer

They protect you from losing money if plans change

Answer

Refundable bookings act as financial insurance — the premium you pay upfront protects the full amount if circumstances force a change.

Question 5

Which of these is the LEAST recommended way to access local currency abroad?

Accepted Answer

Exchanging currency at airport currency exchange kiosks

Answer

Airport currency exchange kiosks typically offer the worst exchange rates and highest fees of any option available to travelers.

Travel Practice Test

Travel Practice Test

Travel Travel Budgeting & Financial Planning 5