Plan ahead to avoid excessive fees while on holiday.

The bank’s 2016 Travel Finance Report found that while young Aussies spend $11.3 billion overseas every year, they aren’t properly preparing beforehand.

According to the study, young people aged 18 to 34 believe international ATM fees to be around $3 per transaction, when in reality the fees are closer to $7 per transaction — and the same group use ATMs overseas an average of 10 times per trip.

“The research shows millennials don’t know the cost of using international ATMs, a cost which can quickly chew through their budget, but can be reduced through some simple research,” Westpac’s head of youth and millennial markets Ashley Gray said.

“Interestingly, the research also found that in order to save money on international ATM withdrawal fees, millennials’ overseas withdrawal amounts are more than double what they are in Australia and carrying this extra cash makes them feel vulnerable and worried.”

The majority of millennials (61 per cent) said they would rather spend that money on food and drink, followed by shopping (42 per cent), gifts (32 per cent), souvenirs (27 per cent) and visiting more attractions (30 per cent).

On average, respondents said they would be willing to walk an extra nine minutes each way to use an ATM where they were not charged a withdrawal fee.

Mr Gray said millennials should thoroughly research their destination in advance and create a daily travel budget taking into account current exchange rates, the cost of food and drinks, transport and sightseeing expenses.

“It’s important to be realistic when planning a budget,” he said.

The survey of more than 1000 Australians found that on average, travellers spend $168.87 per day while overseas, with millennials spending slightly less at $160.58 per day.