Travel Money Tips

When you’re preparing to travel internationally, money is an important consideration. Today’s digital world is quite different from what many travelers had to navigate in the past. Growing up I remember my parents talking about travelers checks which used to be so common, but I’ve never even used them while traveling. These travel money tips will cover what you need to know before and during your next trip!

Dollars, Pesos, Yen, Pounds?

One of the first things I do when preparing to visit a new country is check what the currency of the country is. Some countries will accept USD in tourist areas, but you will often receive the local currency as change and more often than not at a poor exchange rate. Generally speaking, it’s best to use the local currency of the country you’re visiting. Not only will you avoid getting a bad exchange rate at individual businesses, but you’ll stand out less as a tourist.

Familiarize yourself with the symbol used for the currency as well as how it will appear on price tags. In the United States prices are written with a decimal point to show change, i.e. $1.50 is one dollar and fifty cents. In some European countries a comma is often used instead which can cause confusion if you’re not aware of it, i.e. €1,50 is one euro and fifty cents.

Know Exchange Rates

I would also recommend that you check the exchange rates before traveling so you have an idea of what prices will look like. There have definitely been times I’ve looked at the price of something and gotten confused until I manage to mentally convert it to USD to understand the cost. For example, when I visited Vietnam on my Semester at Sea voyage, the Vietnamese Dong was about 20,000 to $1USD. So while the prices sounded wildly high, knowing the exchange rate helped me keep track of how much money I was spending. Today I usually use the XE Currency app on my phone to look up exchange rates.

Cash or Credit? Both.

In some countries you may hardly need to have the local currency in your wallet as credit cards are widely accepted. However, in other places, cash is king and you won’t find many businesses that accept credit cards. Sometimes even when credit cards are accepted, you may get a better price by paying with cash. This happens because credit card companies charge businesses fees to use them and that cost is sometimes passed along to the consumer. It’s worth noting that some services like car rentals or hotels may require that you have a credit card on file, and often times debit cards are not an acceptable alternative.

I would advise you to be prepared with a combination of cash, credit cards, and debit cards so that you aren’t caught unable to pay a bill or book a service. One of the best travel money tips I’ve seen is to have a couple of crisp bills of your home currency stashed away in case of an emergency.

Exchanging Money

Most banks offer currency exchange services, but there are some pros and cons to take into consideration. On the plus side, you’ll have money with you before arriving in the country you’re visiting and won’t need to worry about finding somewhere to get money. Please keep in mind that any amounts $10,000USD and above will need to be declared at customs though.

Bank currency exchange rates aren’t always the best, and depending on how common the currency is you’ll often need to order it in advance. It can be challenging to calculate in advance how much money you’ll need without risking either running out or having a lot leftover that you’ll need to exchange back when your trip comes to an end. Before my first trip abroad when my family visited Ireland, I remember my mom ordering Euros from her bank weeks before our departure and worrying about ordering the right amount.

Many travelers will advise you to find an ATM to pull out local currency for the best exchange rates. This is what I usually do as my bank will refund ATM fees up to a certain amount per month, and it allows me to pull out money in increments so I’m not walking around with the cash for the entire trip on me. If you choose to use ATMs make sure to only use ones in a safe location such as going to actual banks rather than an ATM down a random alley.

Set Up Travel Alerts

Before travel let your bank and credit card company know when and where you’ll be traveling. This helps to prevent them from flagging your purchases as fraudulent and turning off your cards. This practice is starting to be discontinued as updated systems no longer require advance notice, but unless your bank has specifically notified you to cease travel alerts I would continue to let them know. 

In case of emergency, also make sure that you have the phone numbers to call to cancel or turn off your cards. Hopefully you’re never the victim of theft or fraud when traveling, but taking some precautionary steps before traveling will help you quickly get in touch with your bank.

Foreign Transaction Fees

If you’re planning to use your credit or debit cards in an international destination, check to see if your cards will charge you a foreign transaction fee. Many credit card companies waive foreign transactions fees today, so there’s no reason to pay for those fees if you can avoid it. It’s not something you think about on a daily basis, so it’s definitely worth checking on when you’re planning a trip. 

There have definitely been times when booking a tour, lodging, or activity in advance that I’ve forgotten to use my credit card with no transaction fees even though I always make sure that it’s the credit card I pack to take with me when I travel.

Tips on Tipping

Look up the country’s tipping customs so you’re prepared when in a restaurant or after taking a tour. While the US has a big tipping culture, it isn’t always the same in other countries. Usually, tips are accepted graciously even if they aren’t customary in a destination. However, there are exceptions where tipping can be seen as an insult since waitstaff and servers earn a salary. It’s always best to check in advance so as to adhere to local customs.

At restaurants always check the bill as gratuity may have been included already, and you don’t want to unknowingly pay it twice. We encountered this in Italy, where some restaurants had a “servizio incluso” or “coperto” on the bill to note any service or cover charges.

Haggling

In many parts of the world, bargaining or haggling is common when shopping and arranging services. It’s worth checking before departing for a destination whether or not it’s customary there. I find it’s most common at open air markets where the vendors may give you an initial asking price anywhere from 30-70% higher than what they’ll actually accept.

Bargaining can be a controversial subject amongst travelers as some will tell you that if you can afford to pay the asking price, to do so since the daily/monthly income in some destinations is much lower than in other parts of the world. Other travelers will tell you to absolutely not pay that initial asking price since haggling is part of the local culture and economy. They argue that tourists overpaying inflates prices and makes life more expensive and difficult for locals. Additionally, when haggling is part of the culture, vendors may be upset if you don’t join in.

Put These Travel Money Tips to Use

Now it’s time to plan a trip and put all these tips to good use. Time while traveling should be spent exploring the place you’re visiting, not worrying about how to pay for things while you’re there. I hope these travel money tips help reduce any stress about money when you travel next!

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