Traveling abroad can be exciting, but there are a lot of details to consider as you plan your trip. While it's easy to get caught up in the places you're visiting and the things you're doing, don't forget to plan ahead, particularly when it comes to your finances. Here are 10 tips to help you prepare for your big trip abroad.
1. Make Sure to Plan a Budget Ahead of Time
Know how much you're willing to spend on your trip. It can be easy to spend a lot of money while traveling, not only on airfare, transportation, and room and board, but also on dining, recreational activities, tourist attractions, souvenirs, and spontaneous buying. You need to stick to your budget so you don't spend more than you should and face financial challenges when the trip is over.
2. Take Cash With You
Even though you're traveling to a country with a different currency, take some American cash with you.
"You should bring cash in USD (or your home currency) with you on your trip as backup currency in case you wind up with a malfunctioning credit card or ATM card," says Becca Siegel at HalfHalfTravel.com.1 "Bring some fresh USD bills from home. I have always had some crisp USD twenties or fifties in my wallet when I left home for a trip. Having this money has come in handy for exchanging upon arrival, ordering tourist visas upon arrival and sometimes, a national park entrance fee (charged in USD) here and there."
3. Look at Exchange Rates
Look into exchange rates before you buy the local currency of your destination. Be aware that some places that exchange your currency will charge you more, whether through a higher exchange rate or through additional fees (or both). Airport kiosks are notorious for this, as are businesses specifically dedicated to currency exchange. Try using an ATM to exchange your currency.
4. Obtain Local Currency Before Going
If you can, try to obtain local currency for your destination before you make the trip. Check with your bank and ask around among your traveling friends and family to see if anyone has some leftover currency they never exchanged back.
5. Use a Credit Card That Doesn't Charge a Fee for Foreign Transactions
Some credit cards will charge you fees for transactions made in different countries. You can save money if you plan ahead and seek out a card that does not.
6. Let Your Bank and Credit Card Provider Know About Your Trip
It's a good idea to speak with your bank and credit card provider(s) to inform them that you will be traveling, so that charges and purchases do not look suspicious. This can prevent you from being unable to use your card and facing the inconvenience of having to get things straightened out while you're on your trip.
7. Get a Card with Good Travel Rewards
Another credit card tip is to get a card that offers good travel-related rewards. Some will give you extra points for travel-related expenses or give you rewards you can use while you're on your trip
8. Consider Your Tipping Habits
Americans are generally used to tipping for services, but before you travel, try to gain an understanding about the culture of the people who live and work where you're traveling.
As G. Brian Davis at Money Crashers explains, "Tipping customs vary by country and culture. Know whom you should tip and whom you shouldn’t in your destination country. The list may or may not include taxi drivers, bellhops, and tour guides. Also note that while tipping might make you feel generous, it’s inappropriate in some cultures."2
9. Take Multiple Brands of Credit Cards
Take different brands of credit cards, because depending on where you go, they might not accept what you're used to using here at home. For example, consider taking both Visa and Mastercard, or some other combination (though these two brands are the most widely accepted).
10. Pay Attention to Cell Phone Plan Limitations
Avoid unexpected cell phone expenses by refamiliarizing yourself with the details of your plan for international use. You don't want to return home and find that your bill has skyrocketed because you didn't adjust how you used your phone.
International travel can be extremely rewarding, but it can also be challenging to navigate when it comes to money. Develop a plan that covers these tips and stick to it for a successful journey.
1. https://www.halfhalftravel.com/travel-advice/questions-about-travel-and-money.html
2. https://www.moneycrashers.com/traveling-abroad-money-tips/