How to Get the Most Out of Your Money While Traveling Internationally

Traveling internationally is one of my favorite things to do! It’s an opportunity to unplug from your daily routine and experience different cultures and unique cuisines. But having a great trip without breaking the bank requires a lot of research and planning. Whether you’re traveling solo, with family or with a significant other, here are some recommendations that have served me well from traveling to 237 cities and 75 countries:

1. Do your research: After you choose the destination for your trip, find out when the off-season for travel is to save on international flights and hotels. While summer can be a fun time to travel, fall or spring trips can offer potential financial savings. Additionally, the off-season sometimes means better weather! Reading reviews about your destination’s top activities and tourist attractions can save you time and money by helping you determine what is a must and what to skip.
2. Book in advance: Most museums, guided tours and other travel activities can be pre-booked online, and many offer big discounts for advanced booking, which is great for your budget. Make sure you check the schedule — some international museums even have free days (for example, in Italy, it is the first Sunday of every month).
3. Be careful of misleading advertising: While on a trip to Israel, traveling from Jerusalem to Masada, I was told by the guide that I needed to pay in cash to enter the site. I used an ATM with a sign that said “$0 fees.” After the tour, I checked my bank account and saw that I was charged a 25% commission! I soon found out this was a common tourist financial scam. I can attest this happens not only in Israel, since it happened to me in South America too. Avoid “commission fees” by using only ATMs from trusted international banks.
4. Credit cards: Using a credit card while traveling internationally can be more secure than a debit card — and it can be handy in emergencies. Check what cards are widely used at your destination. Make sure to also check if you will be charged foreign transaction fees when using your credit card abroad — not all cards are equal when it comes to travel and financial policies. Try to find one with no fees or low fees as well as points you can save for future travel! Remember to call your bank to let them know when you’ll be traveling abroad so they don’t flag your financial travel activity as suspicious.
5. Exchange rates: When shopping abroad, choose to charge your credit card in local currency — it is my experience that your bank will give you a better exchange rate than the local store. You can also use your debit card to take money from the ATM in local currency once you arrive at your international destination, which can be safer than exchanging money before you travel and carrying a lot of cash.

Doing a little research will stretch your dollars and save you valuable time for international travel. Enjoy your next travel adventure while keeping your finances safe! Consult with your CFP® professional for more tips and budgeting help. Find a CFP® professional today.