This article may contain links to products and services we use and recommend. We may receive compensation when you click on links to those products. For more information, see our Disclosure Policy.
44 Shares
Paul’s sister Jennie, taking a leaf out of our book, travelled around the world in 2017. Before she left, she asked us for advice on how to go about her money needs on the road. We know there are a lot of other people out there who look for ways to minimise bank fees and maximise their travel budget. After all, you have worked hard to afford that well-deserved holiday, so why give a percentage of your travel savings to someone else (if you don’t have to)?
Download your Sustainable Travel Checklist and show the world you care
As travellers, we should all be aware of our travel behaviour and its environmental, economic and social impact; and make conscious decisions about it. Too often, we hear negative stories in the media about tourists behaving badly.
Here is your chance to tick some boxes and check out what it really takes to travel with a sustainable mindset.
When to plan for your travel money needs?
Planning a trip should include budgeting for it so that you don’t feel the (financial) squeeze when you return and drain your recharged batteries by stressing over how to pay your bills in the weeks and months following your trip.
Check websites such as Google Travel, Skiplagged or Skyscanner to see what flights to your desired destination tend to cost throughout the year. You can save heaps of money by avoiding peak seasons or even just altering the weekday of your flights.
If you plan to travel to one of the destinations we have been to feel free to check out our travel cost articles. Alternatively, use Numbeo or Budget Your Trip to check what it would cost to visit your desired destination.
While most people already have credit and/or debit cards, it is worth shopping around for cards that charge the lowest fees (and get an additional card or change provider well in advance of your trip), especially if you are planning to travel for several months (or longer).
Finally, think about your cash needs at least ten days before your departure date and get organised.
Check out the example below of bank fees incurred for a typical two-week overseas holiday of a family of four. Fees can easily add up to a few percentage points of your total travel budget. In the example, paying attention could save this family more than $160 over two weeks (the equivalent of one hotel night). Having applied these tips ourselves, we only paid USD187 in bank fees for a whole year of travel (0.3% of our total spend for the year).
Travel Money Calculation
For simplicity, the above example does not include all charges incurred during an overseas holiday.
Any final tips?
Don’t waste your time with pre-paid travel money cards. We found that their foreign exchange spread is higher than VISA / MasterCard’s, they tend to charge a fee to load (and close) the card, many of the above fees still apply, and they only support standard currencies. One of the benefits of using VISA / MasterCard credit cards is that you are able to dispute fraudulent transactions (usually by calling your card provider’s customer service). While you can dispute fraudulent transactions on prepaid travel money cards as well, we found the process to be lengthy and cumbersome (with claim forms to be submitted to your provider).
Load a currency conversion app onto your phone (for example XE) and set up all the foreign currencies you need while travelling. These apps show you wholesale foreign exchange rates which will allow you to check whether an offered foreign exchange rate is appropriate. Foreign exchange bureaus in particular often charge exorbitant FX spreads to the unwary traveller. Always check the rates before you change money!
Foreign exchange can be a minefield. So, if any of the information provided (above or in any of our other guides) doesn’t make sense please don’t hesitate and send us a comment below or an email.
What travel money tips can you share?
I am no expert when it comes to travel money tips so I would love to hear from our readers about how they save money when travelling – whether it be a credit card tip or where to exchange money.
Use the credit card instead of cash wherever possible. Credit card issuers typically charge fees for international transactions and you may get the best exchange rate and fees lower than those associated with exchanging cash.
The safest place to keep your money secure will most likely be in your hotel room safe. If you don't have one (or if you really need to carry cash with you) try keeping your money in a: Money belt. Neck pouch.
Prepaid travel cards offer a level of security that cash simply can't match. If you lose your card or it's stolen, you can block it, safeguarding the funds. Many card companies also offer quick card replacement services or can provide emergency cash, which can be a lifesaver when you're in a foreign country.
Before your trip, it's best to do a currency exchange at your bank or credit union, which likely offers better rates and fewer and/or lower fees. Your bank or credit union may buy back leftover foreign currency in exchange for dollars when you return.
Consider carrying between $50 and $100 a day on average, but remember that cash can bring fees and thieves along with it. Payment cards often have lower fees and are far easier to carry with you while travelling.
areas that can damage your valuables with water or invasive matter, such as the water tank of a toilet, inside a mayonnaise jar that still has mayonnaise in it, or a paint can filled with paint. ...
a jewelry box. ...
your desk drawer, bedside drawer, or underwear drawer. ...
“We would recommend between $100 to $300 of cash in your wallet, but also having a reserve of $1,000 or so in a safe at home,” Anderson says. Depending on your spending habits, a couple hundred dollars may be more than enough for your daily expenses or not enough.
If you can't buy in-store or have it delivered before you leave, you can buy foreign currency in the airport. We strongly recommend you buy the minimum amount you need from the airport and sort out the rest when you arrive at your destination.
You shouldn't place cash in your checked luggage. This is because your bags are out of your sight and a lot more people have access to them. They also go missing much more often so it is safer to keep in your hand luggage where you can control its location and track its whereabouts much more easily.
A good rule of thumb, though, is that, on average, you should plan to carry between $50 and $100 per day in the currency of the country in which you're travelling. As with all things, research is your friend here. Understand where you're travelling and what the local customs regarding cash are.
Introduction: My name is Aron Pacocha, I am a happy, tasty, innocent, proud, talented, courageous, magnificent person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
