Financial Savviness when Traveling

 

Enjoy your Holiday without Overspending or Feeling Financially Cheated

When traveling internationally, a bit of financial savviness can help you save some cash during your trip.  Here are a few easy financial tips to help you realize some savings during your next trip:

1)      Best Way to Get Foreign Currency – instead of purchasing foreign currency for your upcoming travel from your home bank before departure, or from a private currency exchange desk located at the airport arrival lounge, hotel or city center, you may want to consider obtaining the currency from one of the local bank ATMs, upon arriving into the country you're visiting, .  If possible, check a few local ATMs to find  one with the lowest service charge

 

2)      Credit Card with NO Foreign transaction fee – when traveling overseas, use a credit card as you’re generally assured the best exchange rate when paying by credit card.  However, you should use a credit card that does Not charge foreign transaction fee as otherwise you may not realize any significant savings benefits

 

3)      Opt to pay in the local currency by Credit Card – Often times, the merchants (i.e. shopkeepers, restaurants, tour operators etc.) in the foreign country you’re visiting may ask you if you’d like to pay the bill in your native currency (i.e. currency in which your credit card was issued) or pay in their local currency.  It is most prudent to pay in their local currency.  Why? Because the credit card company does the currency conversion at the official exchange rate (usually the interbank rate), which is much lower and fairer whereas the merchant processes the currency conversion through their DCC (Dynamic Currency Conversion) provider at a marked-up rate (5-7% higher). The merchant generally pockets the difference which means you end up losing out on a good exchange rate

 

4)      Apply for VAT Refund – in many countries, especially in European Union, you can apply for VAT (Value Added Tax) refund.  In EU, VAT is like the sales tax in the US but much higher.  In some countries, you can apply for VAT refund at the airport.  Your hotel or local shops should be able to guide you on your VAT refund process

 

5)      Tipping & Extra Food items – try to find out the tipping rules prior to traveling so you’re aware of the local customs; in some countries tips are already included in the bill, so you may be over tipping by leaving more money on the table if you’re not aware that it’s already included.  Also, in some countries, the servers leave bread baskets on the table, that you may think is complementary, but later they charge you for it. It’s best to ask them upfront if the bread is chargeable or not, to avoid issues later. (P.S: check out my Food without Borders (Global Cuisines) blog to explore dishes from around the world that won’t break the bank!).

 

6)      Bargaining – want to brush up on your negotiation skills? Nothing like bargaining with the local shopkeepers in various countries.  Not to mention that exhilarating feeling of having struck a good bargain… until you visit the next shop and find out this vendor’s starting price is lower than your negotiated purchase price with the last vendor

 

7)      Transportation – I invariably use public transportation in Europe and other countries where possible.  For me, it’s the best way to interact with the locals, learn my way around the city/country, plus it’s safer and offers a better price point.  Comfort is important to me therefore as needed, I may opt for first class over economy

 

8)      Memento to Remember – if I were to choose between buying five little trinkets or one solid memorabilia, I'd almost always opt for the latter.  I’d rather spend a bit extra on something nice, long lasting, visually appealing and created locally. 

Good luck managing your travel finances on your next trip! Got any travel-savvy money tips? I’d love to hear them!  Please share in the Comments section below.

Until next time, folks.  Stay sharp, stay curious 🎯🌍✨