Pack your bags, grab your passport, and make sure your money is safe! Traveling can be an amazing experience, but it also comes with risks, from simply overspending to your money actually being stolen. Prepare yourself with the knowledge and strategies for protecting your money while traveling, allowing you to focus on creating lasting memories.
Pre-Departure Planning
Before you head out the door, take the time to plan for your vacation finances. You don’t have to plan every minute but have at least a loose budget in place so that you can determine quickly if you can afford the fun activity you come across.
Budgeting For Wanderlust
Start your vacation budget by researching the average costs for your destination. Figure out how much you can afford for the entire trip. Then subtract transportation and lodging costs. If you have some activities you know you want to do, factor in admission costs. Repeat this with meals.
You may find a travel budgeting app or a spreadsheet can help keep you on track. Just remember to build in a buffer – even I, a budgeting whiz, end up splurging on an unexpected experience, or opt for a more convenient (and expensive) meal than the one I planned in advance!
Exchanging Currency Like A Pro
Depending on where you’re going, you may have to deal with different currencies – and that can be complicated. There are three things you can do to make using multiple currencies easier on yourself.
First, research the exchange rate, and try to get used to converting prices into at least a rough equivalent. This will give you a clue when you’re being overcharged or let you know that despite something sounding wildly over- or under-priced, it’s actually fairly reasonable (for instance, 8000 Turkish lira is only about $25!).
Second, convert enough cash to get you out of the airport and into your hotel, before you ever leave. While you can exchange currency at just about every airport, you will also likely get punished with extreme exchange rates, so it’s better if you can get to town and exchange where locals do, or just pull money out from an ATM directly into the local currency.
Third, if you’re going to a country that’s debit-card-friendly, consider opening a vacation/travel checking account with a bank that offers minimal fees on foreign transactions. Charles Schwab is one of the best for this (and you can also save, invest, and open an IRA with them!). Doing so means you can use your bank’s exchange rate and it can also be easier than dealing with cash.
Notify Your Banks
Even if you only plan on using your debit card while traveling, or believe you’ll be sticking to cash, notify your banks and credit card companies that you will be traveling! The reason for this is, if something happens and you need to use your card or a different card in an emergency, you don’t want it to get locked-out over an unexpected foreign transaction.
Adding to this, many banks now allow you to ‘turn off’ your card through the mobile app, and this may also be a good idea. In contrast to the card being locked, it only takes a second to turn it back on, but it provides a layer of security in case the card goes missing or is stolen. (It also makes you think before whipping it out for that expensive impulse souvenir you don’t need!)
Consider Travel Insurance
If you’re staying in the States and have good health insurance, you may be able to skip this one. However, if you’re planning a big and expensive trip (Disney, anyone?) or are traveling abroad, consider travel insurance. Travel insurance can protect you in case of trip cancellations, lost luggage, or major medical emergencies, so that you don’t go broke in Uzbekistan. There are a number of different plans designed for different situations – just pay careful attention to the coverage to make sure it fits your needs.
Shielding Your Assets: Travel Security Essentials
You prepared your money in advance, but you still need to keep it safe while actually traveling.
Carrying Your Funds
Invest in a secure way to carry your cash and your cards. An RFID-blocking wallet is a good choice – stealing card numbers can be high-tech these days. You may also want a money belt or an anti-theft crossbody bag – these have a strap that isn’t easily cuttable so that thieves can’t swipe the bag.
I also recommend dividing your money. Carry some in your wallet, but hide a little bit in your shoe or in your pocket – if something happens, you want to be able to get back to the hotel.
Don’t Carry Everything
If you know your budget for the day is $100, you don’t need to carry $1000. Leave some of the money in the safe at the hotel. That way, if you do get robbed, you don’t lose your entire trip budget. Also, while you may be planning on using only your debit cards, bring a credit card – again, in an emergency, you might be grateful.
Minimizing Expenses On The Move
We all live on a budget, and sometimes that means you can’t afford everything. However, I’ve found that often the inexpensive or free activities are the best anyway. In Lecce, Italy, the best museum is a free little hole-in-the-wall house! So when you travel somewhere new, take advantage of the best low-cost options. Look for free walking tours, free or discounted museum admission, and take some time to wander through a public park. By doing so, you’ll often have a lovely time without spending all your money.