Money! Ah that happy medium of exchange, which keeps the world turning and your travel wheels too. One of the biggest concerns when travelling abroad is money – and managing it. Exchange rates, loss and safety of cash are issues. Suddenly you find yourself neck deep in a whole lot of international currency calculations.
Tips to Handle Money While Travelling
Before you set off to see the world you need to do a little homework to stretch your hard-earned and precious savings. We provide the following 5 options for your consideration. What we advocate is a sort of mix and match approach to get the most out of your travelling funds.
Budget your expenses
Just the thought of having to sit down and work out what your expenses are going to give you a headache. That pre-travel exercise, however, may make the difference between having a happy or stressed holiday.
Take the time to identify your priorities – essential, non-essential. Work out your average daily expenses. Try to categorize these daily spends. Then calculate how much you could possibly need for shopping and other incidental costs.
Credit Cards
These are really good on the safety front. They spare you the constant worry of carrying large amounts of cash. They are also handy for making large payments such as hotel bills and air tickets.
A plus point is credit card purchases, in foreign currency, have the best rates on conversion fees. They are lower than if you exchanged your currency for the local one at a change bureau. Shop around because there are several cards that do not charge foreign transaction fees at all.
Before you set out call your bank and inform them of your travel plans. Otherwise sudden international transactions could result in your account being frozen or trigger your issuer’s fraud alert system.
Debit Cards
Besides the safety factor, debit cards are the most convenient way to get cash in local currency. The exchange rate of cash withdrawals are the same as that of credit cards. They also work in the same that credit cards do. A cautionary note here: if you lose your debit card or it is stolen you must report it within two business days. If you wait any longer, you could be responsible for hundreds of dollars in unauthorized charges.
Before you set out call your bank and inform them of your travel plans. Otherwise sudden international transactions could result in your account being frozen or trigger your issuer’s fraud alert system.
Travellers Cheques
In days gone past, travellers cheques were the best and secure means of carrying money abroad. While they are not so popular anymore they do serve as a back up and an alternative to carrying cash. They can be replaced immediately if lost or stolen. They are very useful if you find yourself in a place without an ATM or at a store that does not accept cards. Yes, there are still places like that.
However, they do suffer in comparison to credit and debit cards when it comes to exchange rates.
Cash
Before you leave home it is advisable to obtain some foreign currency. This is to tide you over for the initial period that you are in a foreign country. You will need it to pay for the taxi to your hotel or a meal till you locate an ATM.
Bear in mind that there still exist restaurants, hotels and shops that don’t accept cards of any kind. You may also find yourself in locales that do not have facilities to handle cards. Cash is also handy for local travel, tips and small purchases.
To get the best bang for your buck we suggest you employ a mix of cards, cheques and cash when travelling abroad. They should give you the peace of mind to explore the country and meet new people rather worrying about money.
Tips to Handle Money While Travelling
Before you set off to see the world you need to do a little homework to stretch your hard-earned and precious savings. We provide the following 5 options for your consideration. What we advocate is a sort of mix and match approach to get the most out of your travelling funds.
Budget your expenses
Just the thought of having to sit down and work out what your expenses are going to give you a headache. That pre-travel exercise, however, may make the difference between having a happy or stressed holiday.
Take the time to identify your priorities – essential, non-essential. Work out your average daily expenses. Try to categorize these daily spends. Then calculate how much you could possibly need for shopping and other incidental costs.
Credit Cards
These are really good on the safety front. They spare you the constant worry of carrying large amounts of cash. They are also handy for making large payments such as hotel bills and air tickets.
A plus point is credit card purchases, in foreign currency, have the best rates on conversion fees. They are lower than if you exchanged your currency for the local one at a change bureau. Shop around because there are several cards that do not charge foreign transaction fees at all.
Before you set out call your bank and inform them of your travel plans. Otherwise sudden international transactions could result in your account being frozen or trigger your issuer’s fraud alert system.
Debit Cards
Besides the safety factor, debit cards are the most convenient way to get cash in local currency. The exchange rate of cash withdrawals are the same as that of credit cards. They also work in the same that credit cards do. A cautionary note here: if you lose your debit card or it is stolen you must report it within two business days. If you wait any longer, you could be responsible for hundreds of dollars in unauthorized charges.
Before you set out call your bank and inform them of your travel plans. Otherwise sudden international transactions could result in your account being frozen or trigger your issuer’s fraud alert system.
Travellers Cheques
In days gone past, travellers cheques were the best and secure means of carrying money abroad. While they are not so popular anymore they do serve as a back up and an alternative to carrying cash. They can be replaced immediately if lost or stolen. They are very useful if you find yourself in a place without an ATM or at a store that does not accept cards. Yes, there are still places like that.
However, they do suffer in comparison to credit and debit cards when it comes to exchange rates.
Cash
Before you leave home it is advisable to obtain some foreign currency. This is to tide you over for the initial period that you are in a foreign country. You will need it to pay for the taxi to your hotel or a meal till you locate an ATM.
Bear in mind that there still exist restaurants, hotels and shops that don’t accept cards of any kind. You may also find yourself in locales that do not have facilities to handle cards. Cash is also handy for local travel, tips and small purchases.
To get the best bang for your buck we suggest you employ a mix of cards, cheques and cash when travelling abroad. They should give you the peace of mind to explore the country and meet new people rather worrying about money.