Bring a combination of cash and cards
These days, you can bring money with you on your trip through several means, the most popular of which would be cash and credit/debit cards. Not all establishments around the world accept credit cards; hence having cash on hand will be your lifesaver.
Check if your ATM card has the ability to be used as a debit card. If it does, you don’t have to withdraw money from your account but just swipe it as you would a credit card. The amount will be deducted from your card, and the rates will be based on the bank’s rates for the day. You can also ask your bank if they offer debit cards.
Don’t put all your money and cards in one place
This tip is a practical one that should be practiced not only when you travel, but also at home. Separating your money and you cards gives you a back-up in the cases when you lose your wallet.
Shop around for the best rates
Hotels and airports offer currency exchange services, making it convenient for you to turn your money to the local currency. The downside of this option is that many often tack a high service charge separate from the exchange rate that can make you lose out.
To get an idea of the best rates available, take note of the forex rates. It fluctuates by a few cents every so often, but that isn’t something to worry about. Exchange centers that have rates that are close to these are your best bet.
If you do plan exchange your money before you leave home, do some research if the country you are going to has limits about the amount of cash you can bring in. These measures are put into place as a sort of anti-money laundering precaution.
Get it from an ATM
You can also opt to withdraw money from your account using the ATM when you arrive. this is especially helpful if your card is affiliated with Visa, Mastercard or Cirrus. Just remember to inform your bank about your travel plans so they won’t flag your account for suspicious activity.
Exchanging at your destination
You can easily exchange money when you arrive at your destination, as mentioned previously. There’s bound to be plenty of currency exchange shops in and out of the airport and hotels. However, to find the best rates, ask people in travel communities, particularly online. Knowing other people’s experience with such services will save you the time of hunting them down. Chances are, you may even avoid unnecessary fees.
In some cases, local banks are also a good place to go to for exchanging money.
Don’t exchange all your currency
Try to keep some of the non-local currency with you, particularly if it’s US Dollars or Euros, as these are among the most widely recognized currencies around the world. Having a decent amount on-hand may be useful for emergencies.
General Tips
- Know the current exchange rate based on the forex rates. Take note of the buying and selling rates. The closer an exchange service rate is to those numbers, the better.
- Ask if there are any charges for the exchange transaction.
- Always ask for a receipt for every transaction that you do. Not only will it help you keep track of your spending, but it will also help you know how much was the exchange rate — especially useful if you used your credit card.
- Foreign coins are virtually useless when you return home and most exchange centers do not accept them. Spend these coins as much as you can before you go back home.
