Bon Voyage – Financial Tips to Add to Your Summer Vacation Checklist

Whether you’re traveling solo this summer, taking a trip with friends, or planning a vacation for your family, there are a few simple financial moves you can take to help keep your travels smooth sailing.

Consider Travel Insurance

There are many different types of travel insurance on the market. If your plans are refundable, or the non-refundable portion is not excessively expensive, you likely do not need trip cancellation or interruption coverage.

The other type of coverage that you may wish to consider is medical care, especially if you’re traveling abroad. If you’re traveling out of the country, there is a chance your U.S. based medical insurance may not provide international coverage. More importantly, you will want to confirm that there are medical providers in your destination that will accept your U.S.-based medical coverage. Keep in mind that some Medicare supplements do not provide foreign health coverage.

Notify Your Financial Institutions

Currency Conversion

While on the road you can have a currency conversion tool downloaded to your phone. Or if you have an iPhone, there is a conversion tool built into the new calculator app.

Purchase items in the local currency and your credit card company will convert the currency for you at a rate that will be more favorable to you. For example, some retailers have an option when you pay to allow you to pay in dollars. This method rarely is the most economical method.

The safest form of payment is a credit card, so call your credit card company and let them know you will be traveling so you do not end up with a block on your credit card due to unusual activity. Many retailers and service providers now utilize electronic forms of payment even in places where cash was previously needed.  Systems like Apple or Google Pay transmit your information through Near Field Communication (NFC), which allows the retailer to obtain payment without receiving your credit card number. Tapping your credit card rather than inserting it into a swiper also transmits information by NFC. Both these methods reduce the risk of theft of your credit card information.

It’s also a good idea to set aside a copy of your credit card information along with important numbers to replace it in case of theft or loss.

When using a credit card there are a few things you may wish to consider:

• Choose a card with a favorable foreign transaction fee policy and wide acceptance in the place you will be going.
• Set up card controls and account alerts if possible—your credit card may have the ability to lock it from your phone or computer if the card is lost or stolen.
• Review your credit card activity regularly to make sure your purchases are properly recorded. If for some reason it isn’t correct, the sooner you alert the credit card company the easier it is remediated.
• Understand credit card blocking. When you rent a car or even some hotel rooms, the vendor may put a temporary hold or block on your credit card for the amount that covers the rental and incidental charges such as tolls. Make sure you have room on your credit card balance so that if you have multiple blocks, you do not lose access to your credit cards.

Secure Your Cash

Keeping your money safe while traveling is important so you shouldn’t carry more cash than you need. However, there are some places that you still need cash such as negotiating at a bazaar or a market or even a small amount of cash for tips.

You may wish to convert a small amount of cash before you leave on an international trip. Keep in mind, that local banks rarely keep international currency, so you will need to contact your bank prior to your travels. If you do need to get cash during your trip, it is best to use a bank-run ATM right outside a bank.

If you’re taking cash, it’s important to follow some guidelines to help keep you and your money safe.

• Be aware of your surroundings for scammers. Never be rushed into a decision. A common strategy is to not allow you to take time to properly consider an offer. If someone isn’t willing to give you the time to consider an offer, you should likely reject it.
• Make sure to inspect an ATM for skimmers that can electronically steal your bank information.
• An ATM in a tourist area or the airport is likely to have the highest fees and worst currency conversion rates.
• Count your ATM withdrawal discreetly to ensure you received the amount you withdrew.
• Read all the fine print on the international transaction fees—many ATMs tack on extra fees that may not be reimbursed by your local bank.
• Have a safe place to stash cash such as a money belt, neck stash, or an undergarment stash.
• Make sure to store your cash in multiple places so that if some is lost or stolen, you still have access to some cash.

Once You’re Back Home

After your trip and you’ve returned home it is important to review your credit card statement and keep an eye on any transactions in your bank accounts to make sure that all the charges or debits during the period you were away are legitimate charges.

You can take any unused currency that you don’t wish to keep as a souvenir to your local bank for currency conversion rather than utilizing the services of a kiosk at the airport. The bank may need some time to process the conversion, but the rates will likely be far more favorable than the airport vendor.