If you’re heading on your first trip overseas, money and accessing money affordably can be a huge pain point. How do you withdraw money overseas? Should I be budgeting and tracking my expenses while travelling? Can I trust money changers? How do I get my head around currency exchange rates? What if my cards get stolen? As someone who has travelled a lot, I’ve made plenty of mistakes with managing money while travelling. So below is some of the best advice I practice whenever I travel. Are you looking for tips for saving money for travel before your trip? Check out my money saving guide here.
How to withdraw money while overseas
You will need to get your head around this before heading overseas. Most travellers will regularly utilise ATMs overseas to get out money. Some people prefer to carry cash and currency exchange, which is incredibly risky. Money changers often rip travellers off, and having massive amounts of money leaves you vulnerable to theft.
Depending on your country of origin and who you bank with, you may already have a card you can use overseas to withdraw money. Even if you have a card you can use overseas, it’s worthwhile to research different travel cards and credit cards and compare them against what you already have. Make sure you do this at least a few weeks before you leave. If you need to order new cards; they can take some time to get there in the mail.
So what should you look for in a travel card?
Not all travel cards, debit cards and credit cards are created equally. In addition, many cards you may see recommended online are only available to people living in the US or Europe. Here are a few things to compare/ look out for in a travel card
- What are the currency exchange rates like? Is there a fee for exchanging currencies?
- What is the maximum amount of money you can withdraw at an ATM overseas?
- What International ATM fees does the card charge?
- Do they have a network of partner ATMs overseas where you can withdraw money for free or affordably? If so, are there many partner ATMs in the country you plan to travel to?
- How many cards will they issue you?
- How easy is it to get a replacement card sent overseas?
- Do you have the ability to “lock” or “block” the card on the app if you lose the card?
Most of this information should be available on the card issuer’s website. Alternatively, many travel card comparison websites break down the different fees of each card.
How to navigate different currencies
One of the hardest parts of travelling (in my opinion) is deciphering different currencies and trying to use mental math to figure out how much things cost in your home currency. If you get this wrong, you may spend more than expected or what you budgeted for. Also, if you’re backpacking through multiple countries with different currencies, it can be discombobulating trying to switch between currencies every time you enter a new country. One thing that can be an absolute godsend is downloading an offline currency conversion app.
One of the best travel tips is to figure out what each note is equivalent to in your own currency. I cannot take credit for this hack because I got it from a post in a travel group on Facebook years ago. However this has honestly made currency conversion so much easier. So, firstly, you need to find a clear image of all the different banknotes and coins for the country you’re going to on Google. It should look something like this:
After you’ve saved an image like the above to your phone camera roll, you’ll use a currency conversion app to convert all the amounts on the notes to your own currency. You will then edit the photo and write the equivalent amount in your home currency on the notes. It should look like the following:
I usually favourite the finished product in my camera roll to quickly find it. Also, it’s up to you personally how exact you are with the calculations, and I tend to round up to the nearest dollar to make it easier. I also find rounding up, as opposed to rounding down, means I always spend slightly less than I think. This is a great budgeting/money-saving hack, as every cent counts if you’re on a tight budget.
You may also prefer to choose increments in your home currency and convert them to the currency of your travel destination. For example, write in your notes app $1, $5, $10, $20. Then write down the equivalent in the currency of the country you are travelling to next to it. It should look like the following:
To budget or not to budget
It is a truth universally acknowledged that there are two types of travellers; one who has no idea how much money they’re spending and doesn’t care, and the other who tracks every expense on a spreadsheet or travel budgeting app. I’ve been the first type more often than not, and there is a certain level of freedom (and privilege) that comes with not caring about money while travelling.
However, I’ve started monitoring my budget and cash flow for longer backpacking trips and long-term travel. Does that mean I have a strict budget and have to miss out on things I want to do because I can’t afford it? Not at all. It means that I record everything I spend in a travel app. Then when I have a long travel day or some downtime, I look at how much I’ve been spending and what I’ve been spending money on. Sometimes I think, “Yikes, I’ve spent so much money buying fancy brunches”. Then I think, does spending this amount of money align with my values? If it does, then happy days, I will continue to treat myself to brunch daily. If it does not, I reign it in a bit and instead cook my breakfast at the hostel to save money on brunches.
While tracking expenditures may not be for everyone, it can help ensure you’re not overspending on things that don’t align with your values. If you want to track your budget and expenses, there are heaps of free travel apps that make it easy. I use TravelSpend and love how user-friendly and easy the app is. Are you looking for more travel app recommendations? Check out my full guide here.
Three money mistakes I will never make again
I’ve had my fair share of money mishaps that have cost me. Learn from my mistakes and try to avoid doing these three things.
Try to avoid getting cash out at the airport
Airport ATMs always charge higher fees and have worse currency conversion rates. They know that if you’re getting cash out at the airport, it’s probably because you don’t have another choice. Therefore, they can charge whatever they like. Some airport ATMs are just regular ATMs charging standard fees. Others will sting you like $15 as a fee to get cash out, and then they won’t let you get more than $100 out.
Avoid currency changers overseas
Exchanging currencies with a money lender will never be a good option because money lenders must make money somehow. They will either make money through a transparent fee, through giving you a bad conversion rate or by literally conning you. It is not uncommon in many parts of the world for money changers to slip money up their sleeves while counting the notes back to you. If they’re an experienced scammer, you won’t even notice until you count it later at the hostel. If you need to exchange currency, do it with other travellers at the hostel. For example, if you have leftover Thai Baht and you meet someone in Laos heading to Thailand, ask them if they want to change Lao Kip to Thai Baht. It is easy to google the conversion rate and figure out a fair exchange for both travellers.
Be careful with in-built currency conversion rates at ATMs
Always select the “proceed without conversion rate” on ATMs overseas. When using a foreign card at an ATM overseas, they often offer you an in-built conversion rate from your home currency to the currency you are trying to withdraw. The bank that owns the ATM makes a commission on this amount, so it will never be a reasonable conversion rate for you. Always ensure you are not selecting the conversion option the ATM bank offers. If you proceed without their in-built conversion rate, you will receive your standard travel money card conversion rate. If you’ve researched before your trip and selected a card with a favourable conversion rate, it will always be better than the overseas ATM in-built rates.
How to protect yourself from theft
Throughout my travels, I’ve lost cards, been pickpocketed and heard countless horror stories about travellers getting stuck with no access to cash after mugging. While horror stories make up a small percentage of traveller experiences, protecting yourself against theft is always a good idea. The tips below are some things I do every time I travel, regardless of the destination, to protect from and prevent theft.
Make sure you have multiple cards linked to different accounts
If anything happens and you lose access to one bank account temporarily, you will want an alternative way to withdraw cash overseas so you’re not stuck for money. If you can, having one card that is Visa and another that is Mastercard, is always a good idea, as some more rural ATMs will only accept one kind of card.
Keep your cards in separate locations
If you carry one card in your purse/ wallet, ensure the other is locked away at the hostel. If you get pickpocketed/ mugged, you can return to the hostel and use your backup card to withdraw money overseas.
Ensure you have a card that you can block easily
Many banks nowadays have a “block” feature of cards that you can easily do on your banking app. This is useful if you get pickpocketed or lose your card in the hostel. You can easily block it on the app so no one can use it, and if it turns up somewhere in your backpack, you can unblock it. Nothing is more stressful than having to call your bank to block the card but being unable to reach them due to time differences or phone service issues.
Only carry small portions of cash with you when out and about
Most travellers get out the maximum amount at ATMs to avoid multiple ATM withdrawal fees. While this is a great way to save on ATM fees, it can also leave you vulnerable to theft. I always take out the maximum amount and promptly bring the money back to the hostel. At the hostel, I will divide the cash and carry only 1-2 days’ worth of money. The remainder of the money gets locked in my backpack, which is in my secure locker at the hostel. If I get robbed, the thief will only get 1-2 days of money.
What if somebody steals your card while overseas
Losing your card or being the victim of theft can and does happen when you’re travelling. But it’s not the end of the world; in many cases, it is easy to remedy. Here’s what to do if you lose your card or you get pickpocketed:
- Before you go overseas, have multiple cards linked to different accounts. Always keep the cards in different places (e.g. one in your day purse/wallet and the other locked in your luggage). I cannot stress this enough, having two cards will be a godsend if anything happens!
- When you notice the card is missing, log onto your banking app and block the card so the thief cannot access all your money.
- If you cannot block the card, call your bank (most banks have an emergency 24/7 contact number) and get them to block it.
- Get cash out using your alternative secondary card and ensure you have enough money/ access to money. If you do not have a secondary card, you will have to rely on a money wire via Western Union (if possible for your destination) or rely upon the kindness of other travellers to take out money for you, and you transfer the amount. There are fees for sending and receiving a money wire with Western Union. There may be transfer fees if another traveller gets out cash for you, mainly if you transfer between banks in different countries and with different currencies.
- Speak to your bank about getting a replacement card sent to you overseas.
- Some banks will not post overseas, so you may have to post it to a friend/ family member and then get them to send you a letter with the card in it. Post can take a while or be expensive, depending on your location. Always get the card posted to a future hostel where you plan on staying for at least a few days. Make sure you allow plenty of extra time for postage delays.
- Email the hostel to confirm their postage address and that they will hold a letter for you. Most hostels are happy to do this; just let them know beforehand.
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