Travel Money

How much money should I bring with me on a trip?

The amount of money you should bring on a trip depends on the length of stay and also the type of activities you're going to do. A lot of times you can use your credit card for most of the purchases you're going to make, such as at a restaurant, for your hotel, and even for taxi cabs. So what I like to do is figure out how much money I'm going to need in cash for incidental expenses, such as maybe buying a coffee at a cafe or maybe buying a quick lunch. And a lot of times if it's only a short trip, I'll maybe have $100 in local currency and that will be it. And the rest of the things I'll put on my ATM or on my credit card.

Where should I store money when traveling?

I don't recommend leaving money in your suitcase. The reason is because you want to keep the money close by to you. Sometimes your suitcase, if you check it in on a flight, someone can go through it, and that's very easy for them to take cash. The other thing is that you might have someone handling your suitcase at the hotel. The best thing to do is when it comes to money is keep it on your person, keep it close and always be aware of where your money is.

Where should I keep money on me when I travel?

When you're considering where to store money when you're traveling, is you want to think about what's most convenient and where you think it's going to be most secure. For me it's in my left hip pocket and the reason why is, is when I'm walking I always can sort of feel my pocket or I can keep my hand in my pocket and I can feel that my money is there. For a lot of women what they like to do is they like to keep it in their purse and than they'll strap their purse over their shoulder so that way it's harder for someone to get their purse. A lot of people will just take a little bit of cash, you know maybe enough for a days travel and they'll keep the rest in their hotel, a lot of hotels will have in-room safes, so you can keep some of your extra money in the hotel safe but really it depends on what you think is going to be the best location and where you're going to be most aware of your money. I think the key is, is to be aware of where you have your money and periodically check it. If it's in your pocket put your hand in your pocket and make sure that it's there.

Should I use a money belt or pouch when traveling?

The way that you carry your money really depends on your comfort level. For me, I like keeping it on my body. A lot of people feel more comfortable having a money belt or a money pouch. The thing is that they sometimes can be an invitation for people to snatch and grab, because they do stick out a little bit. Some money pouches are concealed under your legs and under your pants, or under your chest. It depends on how often are you're going to access your money. If you're accessing it all the time, then you're exposing that money belt or that money pouch, and it might just be easier keeping it close in a pants pocket. Another thing about having a money belt or a money pouch, is that it gives people a clue that you're a tourist, and that you are perhaps not familiar with your environment. This tips off the thieves and the robbers that you might be easy prey. A lot of times I like to look like I'm one of the locals, like I'm within that environment. That's the reason why I usually keep my money in my pocket, or I might put it in my back pocket where I can button it and make sure that it's secure. Sometimes, if you have a money belt or a money pouch, you can look like a tourist, and that can open you up to having people prey on you.

Should I exchange money into foreign currencies before I travel internationally?

The best thing to do with your currency is to wait until you arrive at the destination. You can exchange money locally in the US but a lot of times you're going to pay a hefty fee and the exchange rate is also not going to be very favorable. What you want to do, if you want to have money when you arrive, you can get American Express Traveler's Checks. Those always are convenient. A lot of times what I will do is I wait until I arrive at my destination and I will either use an ATM at the airport or if there isn't an ATM at the airport, a lot of times I will arrange for the hotel to pick me up with their hotel cart. That way, I get assigned a taxi upon arrival to the hotel and not have to worry about cash. Then, I can go to a local bank once I am situated at my local hotel.

Will my ATM card work internationally?

Today ATMs are very ubiquitous, very common throughout the world. As long as your debit card or ATM card is a Visa or MasterCard type of ATM card, then you should have no problem being able to find an ATM where you can pull out cash. Really, using the ATM overseas is where you get the best exchange rate. Very often you might be charged a surcharge of maybe two dollars, but the exchange rate that you get for your currency is what the bank gets, so you are actually getting the most favourable bank rate. What I do is when I pull out money from an ATM, I make sure that I pull out enough to last me for my trip. I try not to pull out money every day. If I have excess money, a lot of times what I will do is I'll keep it at the hotel, in the bank safe so I don't have to worry about carrying around too much cash.

What is an 'exchange rate'?

Exchange Rate is basically the difference in the value of a U.S. dollar and the local foreign currency. Many countries have their own currency and they are valued at a different rate than the U.S. dollar is. So the exchange rate is basically that difference between the two currencies.

Where can I find the best exchange rates?

A lot times you're going to find them at a bank. You can go into the bank and most of them will take US currency and they'll change it for you. Some of the worst exchange rates are at your hotel or at vendors along the street where you see 'currency exchange', and at the airport. You're going to get the worst exchange rates there. The two best places are at a local bank in the destination that you are in, or at your ATM.

What are the best ways to pay for things while traveling?

I think one of the best ways to pay for things when you're traveling is with your credit card, and there's a few reasons for that. One, it offers you protection, for example, if you purchase some sort of good or some sort of item that you're bringing back with you and if it's defective or if it breaks or what not, you usually have a level of protection with your credit card. Also, it gives you the ability to track your expenditures. What I like about credit cards is nowadays you can go online and you can look at what you spent, where you spent it and you have that good ability to track it. Plus you also get the best exchange rate because you get what's called the 'interbank exchange rate' and sometimes you might pay little bit of a fee, a transaction fee, that some credit cards charge, but even with that you typically end up with a more favorable exchange rate by using your credit card.

When traveling should I use my credit cards or travelers checks?

Some people do, still use travelers checks, I think it comes with your level of comfort and there are some people who are very comfortable with using travelers checks but on the other hand there's alot of people who are comfortable with using credit cards and really the way that credit cards operate today they seem to be a more common, more secure method of being able to make your purchases. One of the reasons is that there's alot of billing protection so if anything goes wrong, you have a lot of protection on your side with credit cards. The other thing is that they're a little easier to handle because it's just one card that you give to people and they're accepted basically everywhere these days and you also are not paying a transaction fee for travelers check and you don't have to worry about someone who doesn't take travelers checks because there are some merchants and some hotels now that don't take travelers checks so it seems that more and more, credit cards are becoming more of a common way of spending.