Traveling Abroad? 10 Essential Money Tips For A Worry-Free Holiday

Inform your bank where you’re going and for how long. This will ensure that your banking transactions go through smoothly without getting blocked for the duration that you’re travelling abroad

Budgeting is a crucial part of your trip for it will give you an estimate of the money you’ll need to carry with you.

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Travelling abroad can be an exciting and unforgettable experience. Among the many things that go into preparing for a trip, money is perhaps the most important. Issues such as declined payments or blocked cards can lead to additional expenses and a whole lot of stress. But, that’s not it. You also need to think about procuring currency, managing bills, budgeting, and a lot more in preparation for your trip. Here, I will share with you some often-overlooked tips that will ensure that you have a memorable trip without worrying about money.  

Inform your bank about the upcoming travel 

Identity theft and financial fraud are a grave concern today. As a preventative measure, banks often block international transactions on cards unless they have been explicitly informed. Before departing on your trip, inform your bank where you’re going and for how long. This will ensure that your banking transactions go through smoothly without getting blocked for the duration that you’re travelling in another country.  

Don’t exchange currency at the airport

Currency exchange rates vary based on where you’re exchanging from. It is recommended to buy the required foreign currency before the trip. Avoid buying local currency from currency exchange outlets located inside airports. They are notorious for high selling rates and low buying rates. If you can’t get the currency before leaving, exchange it at a bank in the destination country. For instance, I had a trip planned to Azerbaijan but could not get the currency before leaving. So, I carried a certain amount in USD which I planned to exchange in Baku. Luckily, my hotel had an ATM that let me withdraw Azerbaijani Manat from my Forex card.  

Check your credit card fee before using it abroad  

Banks levy hefty charges on certain transactions like currency conversion, foreign transactions, and cash advances that are done abroad. Find out about these charges before using your card abroad or you’ll be greeted by a hefty bill. Better yet, research and apply for an international credit card that charges a low fee for purchases and cash withdrawals.

Create a budget for the trip  

Budgeting is a crucial part of your trip for it will give you an estimate of the money you’ll need to carry with you. Plan your days and research about how much you’re likely to spend each day. This can include entry fees for museums, parks, etc., transport, food, shopping, and anything else you may be interested in. By doing this, you can prevent the stress of running out of money midway through the trip. Also, when calculating your expenses, keep a generous buffer that can help you in case an unexpected expense arises. When planning for a trip, I look up information on ticket prices for places of attraction or shows, the cost of an average meal, and public transport costs for an estimate.   

Have multiple payment options   

It is important to be financially prepared when travelling abroad. Ensure you have sufficient funds for the trip as well as a variety of payment options. Some countries rely on digital payments while some still favour cash. A budget will help you determine how much money you need. For payments, consider carrying international credit cards, forex cards, and cash. This will ensure you have a backup in case any of your cards are not accepted in the destination country.  

Distribute your cash and cards in your luggage  

When packing for your trip, it is smart to spread your cash and cards across various places in your luggage. Always keep some cash and a card with you. Divide the rest between your cabin and checked luggage so you have funds if your bags are stolen or don’t reach your destination. When heading out, carry only the cash you’ll need for the day and leave the rest in your hotel room. Most hotels nowadays have the facility of a safe inside the room which you can use to keep your cash and other valuables. 

Don’t forget about bills at home   

It's easy to forget about bills when you’re on holiday. If you’re travelling for an extended period, like 3-4 weeks, pending or delayed bills can attract late charges. To avoid this, you can request your family or friends to pay the bill. Better yet, automate your regular bills so you don’t miss paying them when you’re away. 

Switch to an international cell phone plan  

Thanks to high international calling rates, incidents of people returning home to hefty phone bills are common. To stay connected to family and friends while travelling, find out and purchase a suitable international plan before your trip. Before landing, switch off data and ‘Background app refresh’ on your phone. This is to prevent your phone from connecting to the available network on landing and start using data, which can be very expensive. If you cannot find an international plan, consider buying a prepaid SIM once you reach your destination. For instance, in Bangkok, you can find prepaid SIM cards at most major grocery chain stores. 

Don’t use public Wi-Fi   

Public or open Wi-Fi networks, commonly found at airports or malls, can be risky to use. Logging on to such a network puts your sensitive information at risk of exposure or attacks. If you must bank online when travelling, do so using a data plan. Also, turn off the option labelled 'Connect to networks automatically' on your device, and consider using a VPN for added security. 

Don’t travel without insurance  

Travel insurance is an important part of overseas travel that offers valuable benefits and peace of mind. Typically, these policies cover potential risks such as lost luggage, delayed or cancelled flights, and personal injury or hospitalisation for the duration of the trip. Many insurers also have a 24/7 helpline to assist travellers with information regarding their coverage or making a claim. 

The author is the manager, communications at BankBazaar.com. This article has been published as part of a special arrangement with BankBazaar.