Traveling abroad is always exciting, with new cultures and cuisines waiting to be explored. But, when it comes to money management, international trips can also become stressful or costly for your travelers. From hidden fees to poor exchange rates, small financial mistakes can quickly add up. The good news? There are simple ways to avoid that!
Be smart with cash withdrawals
Although withdrawing money from an ATM might seem like the most convenient and straightforward solution, it’s often more expensive than you think. It’s not uncommon for foreign ATMs to take advantage of tourism money, charging steep withdrawal fees. Your home bank might also add its own transaction or conversion fee. Besides the costs, you’re also running the risk of falling victim to a card skimming scam at an unfamiliar ATM. If it’s old and poorly maintained, there’s also the risk of the machine “eating” your card – a less than ideal start to your trip.
However, if you have to use an ATM machine abroad, always go for one located in a reputable high street bank, as these are typically more secure and transparent about fees. Another option is to use a trusted remittance transfer service that allows you to access cash overseas without exposing your card details. For example, if you need to send money to India from the USA, such a service would allow you to pick a reliable location near your hotel (e.g. a convenience store), from where you can collect your funds upon arrival.
Set price alerts for favorable exchange rates
Exchange rates fluctuate daily and catching a good rate can make a noticeable difference. Instead of waiting until the last minute, when you may be forced to use whatever exchange rate is that day, plan ahead. You may use currency apps or online platforms to set price alerts for your preferred currency pair.
For instance, if you know you’ll be travelling to India in a few months, set an alert to notify you when the Indian Rupee price becomes more favorable. Once you receive this alert, you can exchange all of a portion of your money at a better value, ready for the trip. The savings may seem small per dollar but, over a large sum, they can really add up.
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Carry USD as a reliable backup
The US dollar is by far the most accepted currency worldwide – in fact, it’s the official global reserve currency. Because of this, many countries, like parts of Latin America, Southeast Asia and the Caribbean, allow you to pay for products or services in dollars, albeit not always at the best exchange rates. Even in countries where it isn’t used for everyday transactions, the currency exchange counters are guaranteed to accept USD (something that can’t be said for many other currencies).
Therefore, carrying some cash in USD will act as a simple yet effective safety net. If you accidentally lose your money or it gets stolen, having dollars could potentially get you out of an emergency. Just remember to carry denominations that are easy to exchange: $20s and $50s are usually best.
Stress-free money management abroad
You will never be able to avoid exchange and transfer fees when travelling internationally, but you can certainly minimize your chances of overpaying or, worse, getting scammed. These smart tips will go a long way in helping you travel confidently, without the constant money worries.
