Summer is in full swing, and that long-awaited vacation is finally within reach. Whether you’re embarking on a European getaway, a Caribbean cruise, or a backpacking adventure through Southeast Asia, there’s a lot to prepare before the adventure begins. While you’re gathering your travel documents, arranging international phone service, and making sure your luggage meets airline requirements, don’t forget to prepare financially as well. When you reach your destination, you don’t want to fumble with your credit cards or lose your wallet while sightseeing in a foreign city. No matter where you’re headed, these money tips can help you travel with confidence and enjoy a stress-free vacation.

Make a Payment Strategy

Determine how you plan to make purchases while you’re abroad and make sure to have a back-up plan in case something goes wrong. A good rule of thumb is to bring two credit cards and some local currency. If your credit card is declined, you can use your other card and keep your cash for emergencies or cash-only situations.

If you can, use a credit card that doesn’t charge foreign transaction fees. These fees can quickly add up with each purchase you make. Many travel credit cards do not charge foreign transaction fees, so you may want to sign up for one before you go.

When you use your credit card abroad, you will usually have the option to pay in U.S. Dollars or the local currency. Always choose the local currency. Your card issuer’s exchange rate is usually better than the merchant’s conversion rate.

Exchange Currency Before you Go

Don’t wait until you arrive at your destination to exchange money. The airport currency exchange kiosks usually charge high service fees and have unfavorable exchange rates. Instead, go to your bank a couple of weeks before your trip to order foreign currency. Your bank will offer low-to-no fees for this service along with better exchange rates. You can also exchange any leftover money back when you return from your trip.

Notify Your Bank and Credit Card Companies

Many banks and credit card companies now have advanced fraud protection tools and don’t require or allow travel notices. However, it’s always a good idea to log into your accounts and check if there’s an option to leave a travel notice. Your bank or credit card company may also reach out if they notice suspicious activity, such as shopping in another country. Make sure to monitor your notifications and verify your financial activity when prompted. The last thing you want is for your card to be declined while you’re enjoying dinner along the Seine in Paris or shopping at the Grand Bazaar in Istanbul.

Keep Cash and Valuables Safe

Unfortunately, petty theft and pickpocketing can be rampant in large tourist-centric cities like Paris, Rome, and Barcelona. Be aware of your surroundings and take extra precautions to secure your money and valuables. Wear a crossbody bag that can’t be easily taken or wear a money belt under your shirt. Avoid carrying your phone in your back pocket.

If your hotel room has a safe, keep most of your cash locked up and only take out a little for each day. When you go to make purchases, don’t show all your cash. Only take out what you need and keep the rest hidden from view. By keeping a low profile and watching your belongings, you can enjoy your trip without the stress of a missing wallet or phone.

Set Up Automatic Payments for Bills

Don’t risk missing important due dates, especially if you’re going to be away for a long period of time. Take a moment to review your monthly bills and enroll in automatic payments so that you don’t have to think about bills when you’re walking through Mayan ruins or island hopping in Greece.

Consider Travel Insurance

Your dream vacation can be a big financial investment. Protecting that investment is a good idea, especially if the trip is several months away or you’ll be traveling a long distance from home. If you get sick or have a family emergency before departure, you can rebook your flight or get a refund. If your luggage is lost or delayed, insurance can help pay for new clothing and toiletries. Your insurance policy may also cover medical expenses if you have an emergency abroad. Even though travel insurance is an added cost, it may be worth it in the long run to protect your travel plans and your finances.

While going abroad is exciting and incredibly rewarding, it also comes with a unique set of challenges you may not face when traveling domestically. From exchanging currency and determining the best payment methods to preparing for emergencies, there is a lot to consider. However, with a little bit of planning and preparation, you can avoid unnecessary stress and make the most of your time away.

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