Avoid These 10 Travelling Money Mistakes
Travelling can be a wonderful experience in itself. However, it costs money and hence, a wise traveller would be one who can avoid the money mistakes. People make money mistakes mostly because they are not aware of the things they should do to avoid them. Trust us, some of the tips we are about to share could be a lifesaver for you when you travel next time.
So, here we go:
1. Not Informing the Bank Where You’re Going
It is always advisable to inform your bank you’ll be going to such-and-such countries. This might sound silly. However, if your bank is not aware you are travelling and they spot some unusual activities originating from overseas in your account, they could block your account. It might put you in a bad situation, especially if you don’t have access to good internet connection or reliable communication system.
2. Ignorance about Bank Fees
Banks might charge you extra for foreign exchange, ATM withdrawals and overseas purchases. If you know that using ATM overseas could cost you some extra dollars, you could carry cash or travel cards to avoid the extra charges. Or else, you can withdraw the maximum amount during one ATM transaction so that you can avoid the charges incurred on every small withdrawal.
3. Failure to Use the Right Debit Card
While preparing for travel, make sure you carry the right debit card with you. It could save you many dollars. Do some research and apply for a debit card, which carries low fees so you can use at ATMs.
4. Not Having a Second Account with another Bank
While one account can serve all your banking needs, it is always wise to open another account with another bank. This secondary account can be a lifesaver if for any reason your primary account can’t be accessed.
5. Not Changing Your Coins and Currency
Experienced travellers would agree that it is always advisable to change your coins into notes before you cross the border. This is because generally, no one will accept them once you cross the border. Also, there is no point in holding on to foreign currency if you will not use it anytime soon. However, if you have some strong currencies like the USD, GBP or EUR, it might be wise to hold on to them as you can use it later.
6. Using the Exchange Service at the Airport
Generally, the currency exchange rates at the airport are a lot lower than at a bank or exchange services in the town. Unless you are not in an emergency, you should wait to get to an exchange centre or bank. Even withdrawing money from the ATM could be cheaper than buying the currency from the airport.
7. Not Carrying Enough Cash
Wherever you are travelling, make it a point to carry some backup cash to meet some emergencies. There could be instances when you’ll need money and the ATMs are not around. In such cases, having cash with you can get you out of the difficult situation. Money exchange may not be easy once you leave your home country.
8. Keeping All Your Cash Together
Don’t put all your eggs in a single basket – likewise, don’t keep all your money in one place. Keep them in various places so that even if you forget/misplace your bag, your wallet is stolen or someone picks your pocket, you don’t lose all your cash. Divide your cash and cards among your things and breathe easy.
9. Not Carrying Enough Change
While travelling, make sure you carry small change with you all the time. This is essential if you are travelling to developing countries. It is likely that the small stores/stalls there may not have the necessary change to give you. It is a good idea to break a big note at supermarkets, gas stations and the like.
10. Considering Only a Travel Card as the Best Option
A travel card is a great tool for travellers. However, it might not be the only option. With travel card, you’ll be charged a fee to buy currency, withdrawal as well as the non-use of a currency. Furthermore, it could cost you if you withdraw in another currency. Also, you may not be able to upload all types of currencies on the travel card. With so much riding on your finances, it is essential to be prepared and concise when it comes to handling and exchanging money abroad. One way to assure your money exchange process is as smooth as possible, is to utilize online foreign exchange services. However, make sure you find a company with competitive currency exchange rates for international money transfer.
While these tips can help you avoid the common money mistakes, you should also remember the following:
• Don’t use unsecured sources to check bank details
• Don’t forget to check your bank activity regularly even while on travel
• Use online facilities to pay bills easily
With a little bit of preparation and awareness, you can travel around the world without worrying about your finances.
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