When traveling to a foreign country, it is important to be aware of the financial dos and don’ts. Not knowing the local customs can lead to expensive mistakes.
In this blog post, we will discuss some of the most important things to keep in mind when spending money abroad. We will cover everything from exchanging currency to avoiding scams. So whether you are planning your first international trip or just need a refresher, read on for some helpful tips!
Financial Dos While Traveling Abroad
It’s very important to be meticulous with how you handle your finances while traveling. Below are a few key points to keep in mind:
1. Do your research ahead of time and know the currency exchange rate
While you might not think much about the exchange rate when you’re at home, it can make a big difference when you’re traveling. Be sure to look up the current exchange rate between your currency and the local currency before you go. That way, you’ll know how much money you should be getting for your dollars (or euros, or yen, etc.). Failing to do this might result in you getting short-changed when you exchange your currency. Make sure to look for companies like Crown Currency so you can have your money converted before you travel.
Another important thing to keep in mind is that the rate can fluctuate, so it’s a good idea to check it regularly leading up to your trip. That way, you’ll have a better idea of how much cash you’ll need to bring with you.
2. When withdrawing money from an ATM, use a machine that is affiliated with your bank
ATM machines always charge a fee for using them, but if you use an ATM that is affiliated with your bank, the fee is usually much lower. Additionally, some banks will reimburse you for the fees charged by other ATMs, so it’s worth checking with yours to see if this is the case.
If you need to use an ATM that isn’t affiliated with your bank, try to find one that is in a major bank or in a well-lit, public area. This will help you avoid getting scammed.
When withdrawing money from an ATM, be sure to take out enough for a few days at a time. That way, you won’t have to keep going back and paying the fee over and over again.
If you want to avoid ATM fees altogether, have your money converted to the local currency before you leave. This way, you can just use cash for your entire trip.
3. Plan a budget and make sure you do not deviate from it
While it can be hard to budget for a trip, it’s important to try. After all, you don’t want to end up spending more money than you have.
One helpful tip is to make a list of all the things you need or want to do on your trip. Then, research how much each activity will cost. Once you have an idea of the total amount you’ll need, you can start to figure out how much money you’ll need to bring with you.
It’s also a good idea to have a buffer in your budget in case something unexpected comes up. That way, you won’t have to worry about not having enough money to do what you want.
Financial Don’ts While Traveling Abroad
Just as there are financial dos while traveling, there are also financial don’ts. Be sure to keep the following in mind to avoid any costly mistakes:
1. Don’t exchange currency at the airport
The rates offered at airports are almost always terrible. You’ll get a much better rate if you exchange your currency at a bank or at a currency exchange office.
Additionally, you’ll want to make sure you have some local currency on hand before you leave for your trip. That way, you won’t have to worry about finding an ATM as soon as you land.
If you’re traveling to a country that uses the same currency as your home country, this tip doesn’t apply to you. However, it’s still a good idea to have some cash on hand in case you need it.
2. Don’t use your debit card for everything
While it might be tempting to just use your debit card for everything while you’re on vacation, it’s not a good idea. This is because most banks charge fees for foreign transactions.
To avoid these fees, you can use a credit card that doesn’t charge them or get a travel-specific debit card.
Travel-specific debit cards are offered by some banks and they typically have much lower fees than regular debit cards.
If you do use your regular debit card while you’re abroad, be sure to check with your bank to see what the fees are. That way, you can budget accordingly.
Additionally, it’s important to note that some countries have different currency conversion rates for credit cards and debit cards. So, if you’re using a credit card, you might get a better rate than if you’re using a debit card.
3. Don’t carry all your money in one place
This is a good rule of thumb to follow no matter where you are. However, it’s especially important when you’re traveling in a foreign country.
If you have all your money in one place and you lose it, you’ll be in a tough spot. So, it’s best to spread your money out.
One way to do this is to keep some cash in your wallet, some in your hotel room safe, and some in a separate bag. That way, if you lose one of them, you’ll still have access to funds.
Additionally, it’s a good idea to leave valuables like jewelry at home. Not only is it a potential target for thieves, but it can also be difficult to replace if it’s lost or stolen.
By understanding the financial dos and don’ts of traveling, you can help ensure your trip is both enjoyable and affordable. Just be sure to do your research before you go so that you know what to expect. Financial surprises while abroad are never fun!