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This article was first published 12 years ago

How to manage money while travelling abroad

Last updated on: March 28, 2012 06:56 IST


Photographs: Reuters Aditya Prasad, Perfios.com

Do you often travel abroad on business or leisure? Here's a simple guide to help you keep a track of how much you spend, swipe and withdraw from international ATMs.

Managing money is quiet simple as you have regular access to check your bank balance or withdraw money at will from a nearest ATM. However, the scenario is entirely different when you are travelling abroad where the visiting nation has a different currency. Money management then becomes a key issue. Here are some tips to manage your money while travelling.

Plastic cards

The debit/credit card transactions are the easiest and globally accepted mode of transaction.  However, when one is on the road it is always recommended you carry more than one card. The reason for this is that even if one card gets lost, you are not stranded without money.

Also, always keep a debit card handy but do not use it to pay bills at hotels or car rentals because in each of these cases, the entire amount for the services is swiped off. If an emergency arises where your credit fails to be acknowledged, then debit cards will be helpful. So use credit cards wherever possible.

The author is chief evangelist, Perfios.com

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How to manage money while travelling abroad


Photographs: Reuters

Travel cards

This is another option that offers pre-loading of a specified amount into it. This ensures higher safety in terms of identity theft. Travel cards attract charges like reload fee, ATM cash withdrawal fee, issuance fee and balance enquiry fee.

One has to remember that while swiping the card each time a whole lot of data is transferred from one end to the other which makes one vulnerable to data or identity theft.

Traveler's cheques

Though this is not one of the favourite methods of carrying money around, one cannot ignore the ease of using traveler's cheques. It also teams up as a backup for credit and debit cards. Even if you lose it, it can be easily blocked. Hence the fear of losing money is minimal.

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How to manage money while travelling abroad


Photographs: Reuters

Foreign currency

While travelling abroad, please be mindful to carry at least $100 worth in the currency of the country you are visiting to. Also, keep adequate change for taxi rides, tips and other small expenses incurred along the way. In many countries, exact change is expected for bus rides.

ATMs

This is the most convenient way to get local currency when in a foreign country. By using this option you get a reasonable bank-to-bank exchange rate. However, banks add premium (about 1 to 3%) to the amount exchanged. There may be some variable charges like pay per use fee and a foreign ATM charge.

Please note: Some currencies like Vietnamese Dong, Lao Kip, Cambodian Riel, Nepal Rupees, Indonesian Rupiah for instance are not convertible. This simply means they are of no use outside their respective countries.


How to manage money while travelling abroad


Internet banking

This is an important tool that you can use effectively to keep a tab on your money. Setting up Internet banking will enable you to monitor all you transactions and check if everything is accounted properly. Also, if necessary you can pay off bills too using this facility.

Inform banks in advance

It is advisable to inform your bank about your international travel especially if you are planning to use credit or debit card for your money requirements. In many cases it has been found that banks tend to block cards if huge sums are being withdrawn from a place other than your registered country.

If the card gets blocked then there is a certain time gap before the card is fully activated. Why take unnecessary tensions of calling to and fro!

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How to manage money while travelling abroad


Photographs: Reuters

Emergency funds

This is a backup measure. It is always advisable to have your parents, friends or relatives as a backup if you run out of money.  A quick transfer from their account to yours will save you from tense moments if you are in a not so known land. So please inform them in advance about the transaction procedure in advance.

Last but not the least...

Carry your cash safely

Please do not keep all the money on you. Distribute it amongst the family members (if it's a family trip) or else do not keep only in one pocket. This is just in case you are robbed or some untoward incident leaving you with some money to make the necessary phone call.

Also, when you are travelling it is easy to get carried and blow away your money. It's always better to keep a track of the money spent with personal financial software available online and easily accessed through mobiles. Just log in to keep a check of your transactions and summary even when you're on the go! It's that easy and convenient!

Tags: Carry