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This year, the majority of British holidaymakers (84%) are choosing to take foreign currency with them on their holiday.
The average Brit is planning to take around £400 worth of currency to cover their holiday expenses.
Research conducted by Tesco Bank suggests that Britons are becoming savvier as cash-strapped consumers become increasingly more aware of their outgoings.
When it comes to buying travel money, almost three quarters (71%) of Brits said they always buy their travel money before they go away and they take the time to shop around for best exchange rates.
The findings also showed that over a third (34%) of Brits will make sure they do not require any more money than their spending money abroad.
This suggests British holidaymakers are taking extra measures to plan and budget their holiday finances carefully to prevent overspending.
Popular holiday destinations this year appear to be in the Eurozone as figures released show that almost three quarters (73%) of people are hoping to buy Euros.
The second most popular currency for holidaymakers is the US Dollar (15%), with the Turkish Lira (7%) in third place.
Euan Ballantyne, Head of Travel Money at Tesco Bank, said: "Our research shows getting a good deal on foreign currency this summer is a great way to manage your holiday budget.
He added: "We already see this reflected in the amount of foreign currency that people are exchanging at Tesco Travel Money.”
Mark Bower, MoneyMaxim's managing director agreed saying that he was seeing similar trends with many customers looking around for the best travel money rates as well. Buying direct from a currency supplier can easily result in an extra £5 in every £100 over a similar amount bought from a high street bank.
A mere 10% of holidaymakers said they are likely to take money from an ATM when they arrive at their holiday destination.
Men seem to splash the cash more abroad, with the average man taking £455.53 to spend, compared to £363.87 for women.
With holidaymakers being especially careful with their money and summer holiday budgets this year, it is important that Brits look for other ways to cut back on costs while on holiday.
Purchasing car rental insurance before you pick up the keys can save holidaymakers hundreds of pounds.