Managing your Money Abroad

Managing your finances whilst travelling can be tricky, with lots of minefields for you to navigate; from exchange rates and bank surcharges to card payments. To help you on your travels, we have collated a few tips that we have learnt while travelling, so you can make the best decisions.

Cash vs Card

Before every trip we make, we have a lengthy debate about how much cash should we bring or should we just use our cards on the trip. The answer very much depends on where you are travelling and the type of card you have.

Travelling in the West, you should have no problem using your card in shops, restaurants, and you will also find plenty of ATMs. Places like South East Asia or South America, you will find that cards are accepted in some places, however not everywhere, and it is best to carry cash with you. In more rural areas and outside of major cities, you will likely struggle if you don't have cash.

Fees & Charges

Before making your decision on card vs cash, you should also consider fees and charges you will likely encounter if using your card.

Depending on the destination you visit, and the type of card you use, you may be charged a foreign transaction fee by your bank on everyday purchases and ATM withdrawals, which can accumulate very quickly.

We also discovered that many local banks and ATMs will often charge withdrawal fees using foreign cards. The best way to avoid these charges is by taking advantage of the ATM networks of large, global banks, like HSBC or Citi Group, who do not charge a fee for using their ATMs. As mentioned above, your bank or card issuer may still charge for these withdrawals.

On top of this, certain bars, restaurants and shops may also include a surcharge for using your card to pay for their goods and services, and the only way to avoid this is by paying with cash.

Best Card for Travelling

*This is not a paid promotion, we just seriously love using this card*

Before setting off on our 6 month trip around the world, we got ourselves a Revolut card. This card is a dream for travellers. It is a pre-paid, Visa card, which you can top up from your debit or credit card, and even by bank transfer, using a handy app.

Firstly, when you use this card abroad, both for spending and ATM withdrawals, it uses the InterBank exchange rate (this is the true exchange rate of currencies, reserved mostly for big banks when trading currency, on to which most places add a commission). This means you will get the most for your money.

It is also great for avoiding charges; even on the free, standard membership, you will have £5,000 to spend each month without incurring charges, and you will also be able to withdraw £200 a month, fee free.

Alongside the great features, the app is also super easy to use; you can manage you funds, track you spending and top-up wherever you are in the world. There are also a number of safety features built-in including in-app authorisation for larger payments made online.

Keep Safe

This section is pretty straight forward; whilst the majority of places you will travel to are completely safe, it is important to take the usual precautions when it comes to money and valuables. Don't go out with all your cash, ensure cards are kept safe when out and about, and ensure any online payments you make or apps you use are secure.

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Wandering Tip

It's always a good idea to let your bank know you are going abroad before you leave, as this will help avoid having your card frozen (should your bank think its fraud) and if you do happen to be a victim of fraud or you lose your card, they will be able to help you more effectively.

If you have any other tips for managing finances whilst travelling, let us know in the comments.

Happy Wandering!