We at World Endeavors know it can be tricky to handle money when you travel abroad. One of the biggest misconceptions out there is that it’s easy, safe and convenient to use traveler’s checks. Well, they may be safe, but they certainly aren’t easy or convenient.
We’ve heard from people who rely on traveler’s checks that they run into huge problems when they try to cash them. No one wants them any more; they’re outdated. To cash a traveler’s check, you usually have to wait in a long, long line at a bank and then pay a huge change fee, and many banks will not change them at all. Regular stores and hotels abroad generally do not accept them, either. I suppose the one upside to using traveler’s checks is that you can feel confident that your money is ’safe’ in a completely unusable format until you get home, and anyone who tries to steal your traveler’s checks won’t be able to use them, either!
A better way to carry money abroad is an ATM card with a major credit card (Visa or Mastercard) logo on it. You can then use this ATM card at almost any ATM in the world, and withdraw local currency directly from your US bank account. Make sure you understand the fees associated with this, as they can be as much as $5 – $10 per withdrawl. However, the convenience of being able to withdraw money on almost any street corner makes up for the fees, and the exchange rates are generally pretty good. Be sure to tell your bank that you’re going abroad so they don’t freeze your account! Unfortunately, there are some risks associated with ATMs, so be sure no one can see you enter your PIN, that the machine (especially the card slot) hasn’t been altered in any way, and also that you are in a safe and well-lit area while using the machine.
You also need to carry a regular credit card for emergencies (with a credit limit of at least $1000-$3000), and carry $100-$200 US dollars in cash with you on the plane to change right away at the airport. Exchange rates at airports are not too good, but you need to have some cash in hand for taxis and other expenses upon arrival.
It’s good to have several different sources of funds so that if one doesn’t work, you have something to fall back on. Money is one of the trickiest parts of traveling abroad, but with a little planning, your trip should go smoothly!
