Money Abroad - How to Manage Money While Traveling Internationally
You’ve created a budget, booked your accommodations, planned your activities, and purchased your airline tickets - you’re all set to travel, money-wise, right? Well, almost. Before you head out, remember that money is different in every country and you will want to ensure a smooth trip by actively preparing for the money you will spend while traveling. We’ve gathered a list of the most important money management tips for international travelers, many of which we wish we would have known sooner.
Contact your bank before traveling
A surefire way to start a trip out on the wrong foot is getting your account flagged right when you start swiping your card overseas. To avoid this, make sure to contact your bank and credit card company before international travel (in fact, it is a good practice to do the same for domestic travel). Most banks and card issuers provide online services where you can inform them of your travel destinations and dates. This is one of the first things you should do after booking a trip.
Variety is key - bring debit, credit, cash, and digital payment options while traveling abroad
Similarly to traveling in the United States, merchants worldwide vary greatly when it comes to the type of currency they accept. We always recommend bringing a variety of payment options while traveling, not only to ensure you have the right method at all vendors, but also for security. If one of your cards gets lost, you can pay in cash and vice versa. Also, remember that Visa and Mastercard are the most widely accepted credit cards worldwide. If you plan to use a different card, make sure to check with vendors before you arrive to ensure it is accepted.
Keep money and important documents close
Carrying multiple forms of payment is the first step, keeping them safe is the second. When venturing out in a new city, make sure to keep your money close by using a money belt or fanny pack with secure zippered pockets. Wallets can be easy to snag out of backpacks and purses when you aren’t looking. Keeping cash and a copy of your passport separate from your wallet, in a hotel lockbox for example, is also a great idea for added security.
If given the option when making card payments, always pay in local currency
Many international vendors offer the option to pay in US dollars or the local currency when taking card payments. While it may seem convenient to know how much something is costing you in US dollars, this practice tends to be expensive. When given the option, always choose to pay in local currency and your card issuer will make the conversion for you later on.
Tipping culture varies worldwide - do your research before you go
In the US, it is standard to tip waitstaff, taxi drivers, valets, and tour guides. However, this practice varies widely internationally. In most of the Americas, the Middle East, and parts of Africa, at least some form of tipping is customary, with destinations throughout Europe, East Asia, and the South Pacific historically foregoing tipping culture. When in doubt, round up bills or leave a cash tip to show appreciation. Keeping smaller cash bills on you while traveling is important to make sure you can do this. Check out the Western Union’s Global Gratuity Guide to learn more about customs and expected percentages in specific locations.
Be aware of exchange rates and fees
Exchange rates vary widely and can make or break your travel budget. Download a currency converter, such as XE Currency Converter, to ensure you understand the price of your international purchases. Additionally, many credit cards charge foreign transaction fees on every purchase made abroad, 3% being the standard. Sign up for a credit card with no foreign transaction fees and travel perks to get the best bang for your buck. Fees don’t just apply to credit cards either. When taking out cash at ATMs, be aware of withdrawal fees and use trusted banks, as ATM fee scams are common.
At the end of the day, do your research! Make sure you are prepared before you go to make your trip stress-free and smooth.