Cash For Your Trip

When traveling within the US, getting cash along the way is rarely a problem. All you need is a Debit Card and a ATM or use the "cash back" feature at a store, and you are on your way. It is still a wise idea to have a few 20's stashed somewhere for emergencies. I like having "untouchable cash" on the trip - money that is only for emergencies, not inconveniences. It can make a tough situation go a lot smoother.

When traveling outside of the US, having the right currency is a bit trickier. Here are a few tips:
1. Track the exchange rate between the dollar and the currency of the country/countries you plan to visit as soon as you decide to travel. If the dollar looks like it's weakening, you might want to exchange some cash early. If the dollar looks like it's gaining strength, waiting until the date of travel is near to exchange your money is better.

2. Where to exchange your money before you leave: I have found that large financial institutions can be best. For members, the exchange is often free, and for nonmembers it is usually a low, flat rate. (For example: I was charged $5 at a bank to exchange $500 for Euros in December and then $5 when I exchanged $900 in the spring.) Then the money is changed at a slightly higher rate than posted on exchange sites. Shop around before you exchange.

3. Plan what you want to spend on souvenirs, eating out, odds and ends, and see what Accomodations require cash only. Take the total amount for cash only lodging and add that to 50% of the total of the other items. This is how much cash you will probably need. This is how much cash I like to take with me. If you do not feel comfortable with that much cash on hand, take at least half of the amount.

4. Currency Exchange locations in foreign countries can charge a high exchange fee. You will usually get a better rate on a Debit Card. Check with your finance institution to see what their charges and fees will be.
*One thing to note, when using an ATM in a foreign country, there is the usual charge from the ATM company, which can be higher than ATM fees in the States.

5. Traveler's Cheques can be an option. I would not recommend using these as your main form of payment. They have the convenience of being easier to replace than cash, but many places do not accept them. Small towns and villiages and small local shops and restaurants do not accept Traveler's Cheques, so check out the places you plan to visit and get a feel for what you will likely need as a form of payment for goods and services. Places that cater to tour groups tend to be more Cheque friendly. Check with you tour company for more information.