It can be a pretty tricky question! Do i bring cash, use my credit/debit card, get a travel money card and what about Mr Wong and his travelers cheques! (Any one remember that!!) Up until recently, I found converting Aussie dollars to US dollars was the best thing to do for me. I could buy at the best rate possible at the time and would pay everything with cash once overseas. It allowed me to stick to a budget because i’m spending money that i have brought with me and I always had my credit card as a back up if needed. (You will need a credit card for accommodation and car rental as security but you can still pay cash to settle the account). On our latest trip, i decided to use a travel money card. It allowed me to add funds to the card at locked in rates and i used it exactly like a credit card. It can be topped up if needed by transferring money using internet banking which takes a couple of days. I used the Qantas prepaid frequent flyer card which allowed me to earn frequent flyer points every time i spent on the card.
Best ways to travel with foreign currency?
- Load cash onto a Qantas prepaid card. You can use it as a way to put money away for your holiday and lock in the rates now, instead of putting savings into a separate account. If you’re confident the rate may increase, put your money away in a savings account and you can add it to your card closer to your holiday. The advantage of a prepaid travel card is if you lose your card, you don’t loose your cash as long as you report it, you’ll earn points each time you spend and it’s taken anywhere MasterCard is accepted. There are many other travel cards you can use but i’m all about maximizing my points so for me, Qantas is the way to go.
- Change your cash into US dollars and lock in the best rate you can get. Make sure you keep your money in a secure place on your person when travelling or lock the majority away in the safe located in your room if you have one. You won’t be earning points this way but you will save money if the rates drop and it’s easier to stick to your budget. Disadvantage is if you happen to get robbed or loose your money, then it’s gone. If i can add, if you do get held up, don’t put up a fight, give them what they want and let them go. Your life is worth more than the money or belonging you loose!
- Use your credit card. Cards are accepted in most places and you’ll also earn points on your spend if you have a rewards program. The disadvantage is that you are getting the exchange rates the banks charge on the day as well as any fees they charge for the transaction. Traveling and using a credit card can be like having an open cheque book. It may prove tempting to spend more than you planned and leave you with a bigger bill on your return.
Hot tip – Call your bank and let them know where you are going and when you’ll be away. They called me on my last trip and the call cost me $10. I was on international roaming!
- Use a debit card. You’re using your money so no surprises but as with credit cards, there will be conversion and transaction fees as well as you’re getting the rate the bank offers on the day. There could also be ATM charges if you are withdrawing cash from overseas ATM’s. Check with your bank to see what’s the best way to use your debit card to minimize fees.
- Travelers cheques? Well for me, this is more about nostalgia than offering another way to use money overseas. Many moons ago, travelers cheques were a safe way to use money overseas but now, with a variety of 21st century options, travelers cheques are more like CD’s. They still are used but why bother when you can now put music on your phone!
My tick goes to the prepaid travel money cards and the Qantas card in my preference. You can load funds at anytime, no fees and you earn points every time you shop. I would also recommend bringing cash as you are going to need it in many instances.
Travelling to the US? Traveltotheus.com.au