Going on vacation is exciting and something most people look forward to but nevertheless there are some practical things you need to consider. A successful and enjoyable holiday partly depends on which option for travel cash that you choose.
To make the decision easier for you we will give you an overview of your options for travel cash on vacation. We will explain the pros and cons of using credit cards, cash or traveler’s checks.
Since all major cities have ATM´s which are linked to international networks credit cards are a safe and convenient way to carry money. Nevertheless you should take precautions when traveling, especially if you are going abroad. To be on the safe side, it´s best to double check your credit limit and the expiration date of your card. Using a single card will make it easier to budget. But be aware of the new fees that can be applied when using a credit card abroad.
Traveler´s checks are not as common today as they were before the days of ATMs and easy accessible cash. But if you want to avoid repeated ATM withdrawals from abroad they are a good solution. They are usually offered them in many different denominations and you can purchase them from almost any bank. The good thing with traveler´s checks is that they are insured, meaning that if you lose one for your traveler´s checks get stolen you will still be able to get your money back. If you are travelling with a lot of cash this is very convenient. It is only the purchaser or owner of the traveler´s check who can cash the check for money. However this can only be done at a bank during their respective office hours.
Since ATMs provide the possibility to withdraw cash every day you can easily avoid walking around with a large amount of money in your wallet while on vacation. You won´t risk losing all your money in case you are robbed and still have access to all of your travelling funds. The disadvantage may be the charges for each transaction that you make. Since it´s not necessarily only your own bank that will charge your transactions but the foreign bank in possession of the ATM machine withdrawing cash while on vacation can be quite costly.
To decide which option for travel cash on vacation you will go for you need to weigh the pros and cons considering what option is the best for you on this particular vacation. It´s important to think about what kind of trip you are going on. Will you need a lot of money? If for instance all the meals are pre-paid and there won´t be any other large costs the most uncomplicated way may be to withdraw the cash as needed. But if you will have to pay a lot during the trip a combination of credit cards and cash may be the best choice. This way you won´t have to carry a lot of money but it´s always easily accessible.