How To: Manage Money Abroad

The “How To” series will discuss important topics related to volunteering abroad and traveling in general. As you read on, the following will give you advice on “how to” do something. Sounds simple enough, but a lot of these tips & tricks will make a world of difference once you’re out there traveling abroad. We know this because we’ve been there, and we’ll be sharing personal notes along with best-practice advice from world travelers!

This is a rather pressing issue that can often cause anxiety when traveling. Money will always be funny, but even more-so when its colorful and you’re tempted to buy properties with it. Not to mention making the preparations for exchanging currency and managing your account can be daunting; but don’t stress. With just a few simple precautions, you’ll know just “How To”: Manage Money Abroad.

First off, make sure you let your bank know you’ll be traveling abroad. Otherwise they will see unusual activity and potentially freeze your account–not good. It is the 21st century so many of us operate on a debit/credit system that we rarely think about; until now. Once you cross international borders, your bank activity is immediately tagged. Avoid any snafus by letting them know your plans.

Cash is foolproof. No matter where you are, the local currency should always be accepted. And with the proliferation of ATM’s around the world, it’s often as close as a block away. There are exceptions though, such as with developing countries that may not have the technology. Make it a habit to always prepare for departure with a wad of local currency on hand; this will help make your arrival and immediate plans run smoothly.

Always choose the local currency [when possible]. When I was in Europe and paid with my card, I would often have the option of paying in either U.S. Dollars or Euros; choose the latter. If you pay in another [foreign] currency you may be charged a currency conversion fee which will add up over time. And while we’re talking plastic, you may want to consider an International travel card if you prefer paying via card but want to avoid any transaction charges.

Keep a rainy day fund at home. This could be for emergencies or a big spend towards the end of your trip, either way it is a necessity. The last scenario you want while you’re abroad is stranded without your lost or stolen wallet. Avoid this situation by keeping an emergency stash in your larger bag or suitcase; whatever you consider home base.

A note about travelers checks: they’re not so functional. A lot of places, especially the smaller, more local ones, will not accept travelers checks. I kept an emergency stash of travelers checks but found it difficult to use them. In the end, I just ended up cashing them in the country. They can be a nice padding for your personal funds but otherwise, not very functional.

Lastly, hold onto some loose change. Currency is often unique to a country and part of it’s cultural heritage, something many value beyond monetary worth. Collecting a couple coins from every country you visit is a fun and practical souvenir; who knows, you may actually need to spend it one day!

Altogether, if you take the above into consideration, you will be more than prepared to manage your funds abroad. And when in doubt, visit your local bank to discuss potential issues and asks any questions you may have. Overall, simply take care and you’ll keep from being $pent!

Here’s a useful article that discusses various options for the best way to carry money in the country(s) you plan on visiting.

Want to know “How To” do something? Ask us your questions in the comments below and we’ll put our heads together to get you the answer!