Money on the Road

Tips for Carrying and Keeping your Moolah

Cash? Credit cards? Debit cards? Traveler’s checks? How should I carry my travel funds when I’m on the move?

This is one of the most common questions travelers ask before departing on any trips longer than a week, and with good reason. The choices are never cut and dry and the best options actually vary quite a bit from place to place.

Most of the comprehensive how to travel books cover this subject in some detail. Most of the better guidebooks also provide info on the currency exchange and credit card situation in a given country.

Ideally, it’s best to have a mix of cash and/or travelers’ checks, credit cards, a debit card, and extra local money if you’ll be in rural areas. Cash is easy to exchange nearly anywhere in the world, but travelers’ checks often secure a better rate in cities. Euros rule in Europe, US dollars elsewhere. Debit cards work great where there are ample ATMs, though it makes sense to use them for good-sized withdrawals since you’ll often be charged a fee. This site has a link to ATM networks (under “Money”) if you want to see where there are machines you can use.

All Credit Cards are not Equal
Credit cards can be ideal if you’re using the right kind and you’re going to quickly pay off the amount. See this great article from Ed Perkins of SmarterTravel.com for a breakdown of which credit cards are kind to traveling consumers and which rob you blind. Apply for a favorable card and leave the others at home. And for some odd reason, MasterCard is more widely accepted than Visa in many countries.

Carrying Cash
Cash is risky to carry in big quantities, of course, but you can carry a few hundred with confidence by buying the right gadgets. Your money and passport should always be concealed and under your clothes. Buy a hanging wallet that can go under your shirt or can hook to a belt and go into your pants. I used one of these for three years solid on the road and never had a problem. You can also buy a belt that has a concealed zipper pocket on the back. You can fold up a few hundreds in there and nobody’s the wiser. (Just don’t pull it out and unzip to pay for souvenirs or your cover is blown!). REI has a good selection for decent prices.

Travelers’ Checks not a No-Brainer
Travelers’ checks get a better rate in some countries, but come with big transaction fees in others. Most people think lost travelers’ checks will be quickly and easily replaced if stolen, but they often get a rude awakening when it happens. Due to frequent theft and fraud in some areas (often from other travelers unfortunately), it can take weeks, especially if you’re not already a cardholder with that company. If you look like a homeless bum when you travel, your claim might be denied outright in Bangkok or Delhi, even with a police report. So spiff up before visiting that Amex office and always have a back-up source of funds.