Money Money Money

What you need to know about handling your money while traveling abroad.

If there is one thing I’ve learned from traveling to over 20 countries, it is that every country handles money a little differently. Some countries are all cash-based and some only accept credit cards. There has also been a shift from cash to credit cards over time to if you visited a country 15 years ago their money system may look a little different today.

Cash-Based Countries

You can typically count on developing countries to be cash-based. Some hotels may take credit cards, but meal, taxis, entrance fees, etc will all be cash. If you are used to always paying with credit cards, carrying a lot of cash around can feel very weird. I recommend withdrawing about 4-5 days worth of cash per adult in your party. For example, when I went to Thailand with my dad, we withdrew what we estimated to be about 10 days worth of expenses and divided the cash among us. We each also stored our cash in a couple different spots so it wasn’t all in one place (see How to Avoid Getting Pick Pocketed). If you are nervous about the volume of cash, or uncomfortable carrying that much, then withdraw less; just know you will have to visit an ATM more often. Additionally, keep in mind that ATMs typically provide large bills and taxis often don’t want to give you change, so break those big bills at restaurants or hotels and keep exact change ready for taxis.

Cash Before You Land

To avoid the stress of finding cash immediately upon landing in a cash-based country, take a day or two’s worth of cash with you. While money exchange booths are plentiful in airports, the exchange rate is typically pretty bad and sometimes you may encounter fees on top of that. Instead, contact your local bank at least a week before traveling and get several days of cash to start (note that banks may have some currencies on hand, but others will have to order so contact them at least a week before you leave). The exchange rate and fees at your US bank might not be as good as a bank/ATM in the country you are visiting, but it will be better than the airport exchange rate and fees.

Card-based Countries

Developed nations will mostly be card-based systems or mixed cash and card. The way credit cards are used may look a little different than what you see in the US. Often in Europe they bring a handheld card reader to your table once you tell them you are ready to pay. However, if you are ever unsure what to do and don’t want to ask, just sit and watch locals for a little while and you will start to notice the pattern. This is what we did when visiting New Zealand for the first time last year. We knew it was a credit card-based system, but what surprised us was that you have to get up from your table when you are ready to pay and go to either the bar or the host station to pay (even for nice restaurants).

Use your Credit Card Wisely

If you are headed to a country that is a credit card-based money system, make sure you only use cards that do not have foreign transaction fees, and if given the option, always pay in local currency to avoid paying poor exchange rates and fees.

Bill Splitting

Finally, if you are paying with a credit card, and you intend to split the bill with friends, don’t try to split it at the restaurant. From my experience, it is not a cultural norm in most countries outside the US to have restaurants split bills for one table. Plan on handling it separately. I recommend using a money transfer app like Venmo or keeping track of expenses throughout the trip and settling the difference at the end.

When traveling abroad, be prepared to adapt to what the locals are doing when it comes to your money. It will help you immerse yourself in the culture and not stick out so much as a tourist.