Handling Your Money While Traveling

When traveling I often find myself faced with the dilemma of how to manage my funds, especially if traveling throughout multiple countries that all use separate currencies. Through the years I’ve come to learn what works and what doesn’t work when facing this challenge as well as the general complexities of managing my accounts while abroad.

1. Set up a new account for travel: I often use a basic bank account for travel – either with a different bank to my main accounts or a separate account within that same bank like WECU – savings. I usually do some digging to see which bank offers either a minimal or zero conversion fee and also which charges the least for foreign ATM transaction fees. If you do your research, you will come to find that these vary depending on the bank and that some fees are quiet extensive in comparison to others. It might only seem like a few dollars here and there, but if you plan on withdrawing cash from an ATM at regular intervals or are traveling long-term, it all adds up!

2. Prepaid debit cards: Prepaid debit cards are another great option. The beauty of these is that you can top them up online via another account as needed and, if it gets stolen, the thief does not have access to your entire life savings – only the amount that the prepaid debit card holds because it is not technically linked to a physical account. Smart option, again though, conversion fees and ATM withdraw fees will add up with this so be sure to read the fine print.

3. Converting cash prior to departure: It’s always a smart idea to have some cash in the currency of the country you are going to before arrival – nothing too drastic, but perhaps a couple of hundred to get you by upon arrival. I usually get my currency converted at a bank or at the post office – I have found both these places to offer the best conversion rates possible. Do not convert your currency at places like Travelex or the conversion counters inside the airports – these guys offer the worst conversion rates as well as outrageous conversion fees!

1. Six digit PINs: ATMs in Europe only allow for a four digit PIN so if you have a six digit PIN, be sure to change this down to four digits with your bank prior to departure.

2. Travellers Cheques: Do people still even use these? They’re like some ancient, prehistoric travel/cash conversion method that the older generation praise because they technically don’t have to carry around bulks of cash on them . I’m pretty sure these are on their way to becoming obsolete; you only have to compare current accounts easily to see the plethora of convenient and alternative options available to you.

3. Debit Cards with no Cirrus or Maestro symbol: If you plan on using your debit card overseas (particularly in Europe), you will need to flip it over and make sure the back of it bears either the Cirrus or Maestro symbols – either one is fine. If it does not, chances are the ATM you are wanting to withdraw from will not support your cash network and you will not be able to withdraw funds. Better to check this before departure rather than be screwed upon attempt.

4. Not notifying your bank before leaving home: This is a common error simply because people are usually too busy packing and stressing about their upcoming trip that it is often looked over. If you do not call your bank before leaving home to notify them that you will be accessing funds from an outside intermediary  chances are, when you go to use an ATM on the other side of the world, a fraud flag with be raised with your bank back home and a lock will be put on your account. This lock will prevent any further access to your account until you have contacted your bank to have it removed – this can be a difficult task while overseas!