Top tips for money smart travellers

This post is proudly supported by the Commonwealth Bank’s Travel Money Card.

Managing your money while travelling can be tricky. Everything comes at a cost – from paying for your nightly accommodation to buying daily meals, you will often find that money gets spent faster while travelling than just about any other time.

As a result of this heightened spending, it pays to be money smart while abroad. You need to be proactive with your personal finances to maximise the money you do have.

Here are some top tips for been a money smart traveller.

 

Lock in your foreign currency before you depart

Avoid the frustration of trying to do the conversion maths in your head. Buy your foreign currency before you leave on your travel money card and lock in a set rate. The benefits of this are twofold – firstly you will likely get a better rate than that of on the ground internationally and secondly you can budget effectively knowing exactly how much money you have started with.

Hot tip: try and avoid buying foreign currency at airports and tourist hot spots. The rates are notoriously bad and will give you less foreign currency for your Australian dollars.

Preparation is key

Be sure to notify your bank of your imminent departure prior to leaving. International transactions that may appear on your account out of the blue will appear suspicious to many banks and cause them to freeze your accounts to avoid further potential fraud. Notifying them of your plans ahead of time means no frozen accounts and smoother sailing when gaining access to your money abroad.

It is also wise to minimise the fees you pay for accessing money while travelling. A travel money card offers a great solution to this common problem as it is built for international use. It is however recommended that you fully read the fees and charges associated with your travel money card prior to leaving so you are aware of the smartest ways to use it while avoiding excess fees.

See ‘How to avoid fees and charges when travelling abroad’ for further information.

Consider the security benefits of a travel money card

When in a foreign country, we often find ourselves off guard when it comes to our finances and security. Utilising a travel money card means we can separate our everyday accounts from that of our travel money. This limits the potential downside of fraud as a travel money card is prepaid only, meaning it is not a line of credit that can be exploited to no end.

It also means that once you arrive home, you can close the travel money card to further reduce the chances of future fraud from merchants who have your travel money card details.

For more information on Commonwealth Bank’s travel products and services, please visit http://www.commbank.com.au/personal/international.