Travel Money Tips: How to Save More and Spend Smarter Abroad
Travelling can be one of life’s most rewarding experiences, but it often comes with financial challenges. From fluctuating exchange rates to hidden card fees, the way you manage your money abroad can make or break your trip’s budget. Whether you’re planning a backpacking journey across Asia, a romantic European getaway, or a business trip in the States, knowing how to handle your travel money smartly is essential.
This guide will walk you through practical and tested tips for handling money while abroad—without falling into common traps.
Choose the Right Travel Money Option
Before you even leave home, you need to decide how you’ll access money while you’re away. Here are the main options and their pros and cons:
1. Prepaid Travel Cards
These are a safer alternative to carrying cash. You can load your card with multiple currencies and lock in exchange rates ahead of time. They’re accepted at most places where debit or credit cards are used.
Pros:
-
Lock in rates before travel.
-
Easier to budget.
-
Less risk of overspending.
Cons:
-
Not accepted everywhere.
-
Reload fees or inactivity fees may apply.
2. Debit and Credit Cards
Most travellers today rely on their existing bank cards. While convenient, not all cards are created equal. Many charge foreign transaction fees or use poor exchange rates.
Tip: Use a card that doesn’t charge for international transactions. Look into specialist travel credit cards from providers like Chase, Revolut, or Starling Bank.
3. Cash
Some situations still call for local currency, especially in rural areas or markets. It’s wise to bring a small amount of cash in the local currency when you arrive.
Avoid changing currency at airports or hotels, where rates are notoriously poor. Instead, use a reliable currency exchange bureau or order online ahead of time for better rates.
Avoid Airport Exchange Traps
If you’ve ever waited until the last minute to buy travel money, chances are you’ve been stung by airport exchange counters. Their convenience comes at a price—often 10–15% worse than high street or online rates.
Plan ahead. Use reputable currency exchange services online, such as:
Order your travel money at least 5–7 days in advance to ensure timely delivery or pick-up.
Understand Dynamic Currency Conversion (DCC)
One hidden pitfall that catches many travellers is Dynamic Currency Conversion. When paying by card abroad, you might be asked: “Would you like to pay in your home currency?” It seems harmless, but choosing this often leads to inflated exchange rates and extra fees.
Always choose to pay in the local currency. This allows your bank to handle the conversion, usually at a much better rate.
Withdraw Cash Wisely Abroad
Withdrawing money from foreign ATMs is generally safe and convenient. However, many banks and machines charge fees per withdrawal or percentage-based commissions.
Here’s how to minimise those costs:
-
Use cards with no foreign ATM fees.
-
Withdraw larger amounts at once rather than multiple small transactions.
-
Only use ATMs inside banks or secure locations.
Some accounts, such as those from Starling Bank (UK) or Charles Schwab (US), offer fee-free international withdrawals.
Check your bank’s ATM policies before you travel to avoid surprises.
Set a Daily Budget and Stick to It
It’s easy to overspend when you’re swept up in the excitement of a new place. To keep your finances in check, set a realistic daily budget for food, transport, entertainment, and extras.
Use budget tracking apps like:
Break your budget into categories to spot overspending early.
Use Local SIMs or eSIMs for Banking Access
Most modern banks require two-factor authentication (2FA) to access online accounts. If you rely on your home number abroad, roaming fees or lack of signal can lock you out.
To prevent this:
-
Get a local SIM card or
-
Use eSIM apps like Airalo
This ensures access to SMS-based verifications and keeps you connected for mobile banking.
Carry a Backup Payment Method
Never rely on just one payment method. Cards can be lost, stolen, or blocked due to “suspicious” activity overseas. Always travel with:
-
At least one backup card.
-
Emergency cash hidden in your luggage or hotel safe.
Also, store your card details securely online or in a password manager so you can block or replace them quickly if needed.
Inform Your Bank Before Travelling
Some banks automatically block transactions that appear “unusual”—like purchases in another country—until they hear from you.
Before you travel, log into your online banking or call your provider to let them know your travel dates and destinations. This reduces the chance of a temporary block on your account.
Consider Travel Insurance With Financial Cover
Travel insurance is often overlooked, but in the case of lost or stolen money, it can be a lifeline. Choose a policy that includes:
-
Lost/stolen card coverage.
-
Emergency cash replacement.
-
Trip cancellation protection for financial losses.
Beware of Contactless Skimming
Contactless card readers, while convenient, can also be targeted by thieves with portable skimming devices. In crowded areas, consider carrying your cards in RFID-blocking wallets or keeping contactless features disabled.
Also, avoid tapping for every small purchase—use cash for things like metro tickets or street food to keep your spending more visible and under control.
Exchange Leftover Currency Smartly
At the end of your trip, don’t let leftover currency go to waste. You have a few options:
-
Spend it at the airport on small purchases.
-
Exchange it back, though rates may be worse.
-
Keep it for your next trip to the same destination.
-
Donate coins to airport charity boxes—some are linked with global aid organisations.
Some UK banks also accept foreign notes for exchange, but rarely coins.
Final Thoughts
Planning your travel money strategy in advance can save you hundreds—and save you from stress. The key is to combine smart tools like fee-free cards and travel apps with common-sense habits like budgeting, securing backups, and staying informed.
Treat your travel finances with the same care you give to booking flights or choosing hotels, and you’ll return home with not just memories, but also money saved.