managing your money
while traveling
The thought of carrying large sums of money while traveling abroad, or not having access to your money at all, can be scary. Below, I’ve included the best ways to access money based on the length of your trip. I’ve also included my favorite credit and debit card that carry NO FEES!
cash versus credit card
the great debate
✔️ Cash- The Good: In smaller cities, sometimes cash is the only form of payment accepted. Even in bigger cities, most small shops don’t offer credit card machines. The same goes for taxis and most buses. You never want to be left stranded or unable to pay for a purchase, which is why it’s important to always have cash on hand.
❌ Cash- The Bad: Most of the time people have their standard debit card from a traditional bank, but these can carry foreign transition fees, ATM fees, etc which means they withdrawal larger sums of money to avoid frequenting the ATM and being hit with fees, and this makes you a prime target for pickpockets. This is why I have a debit card with no fees which we’ll talk more about.
✔️ Credit Card- The Good: Making purchases on a credit card provides the most peace of mind since you won’t be carrying large sums of cash. Another bonus arrives at the end of the month when you receive a detailed statement of every purchase. When making purchases with cash, we tend to lose track of spending, so having a detailed statement of purchases will help you better understand your spending habits for future trips.
❌ Credit Card – The Bad: Most credit cards charge a foreign transaction fee (3% of the purchase amount), which is why I have a credit card with no fees that I pay in full at the end of the month. We’ll talk more about that card in a minute.
💡 Tip: Using a mix of both credit card and having cash on hand is the way to go!
HOW LONG ARE YOU TRAVELING?
SHORT TRIP
1 week
foreign currency
If you’re taking a quick trip and want to avoid foreign transaction fees with your credit card and ATM fees with your debit card, but you also don’t want to open a new debit or credit card account, both of which I suggest later in the post, because they’re awesome! 💯 Then ordering foreign currency, ahead of your trip, is the easiest option.
✔️ The easiest way to obtain foreign currency is through your bank before your trip. This ensures you’re able to make purchases as soon as you land at your destination, and you don’t need to worry about finding a random atm along the way. For foreign currency, your bank will offer you the best exchange rate, whereas third-party companies often shortchange you to make a larger profit.
💡 The process for Foreign Currency: Ask your bank how far in advance they recommend placing your order since shipping times vary. I recommend ordering a few hundred dollars, which the bank will deduct from your checking or savings account. The amount deducted from your account will be converted to the currency of your choice. Your bank will then notify you once your currency has arrived and is ready for you to pick up.
❌ If you need additional cash during your trip, an ATM can be found almost anywhere. Keep in mind that using an ATM can come with lots of fees (more info below), so be sure to withdraw larger sums of cash less frequently, to keep fees to a minimum.
extended travel
2 or more weeks
atm fees and how to avoid them
For extended trips, I advise against carrying around large sums of money, so you’ll want to visit ATMs along the way as needed.
❌ When using an ATM abroad, your bank will likely charge you a $5 fee and a foreign transaction fee (3% of the converted US dollar amount) per withdrawal. You may also be charged an additional fee by the ATM for using its services.
What does that mean? If you’re withdrawing $100, you will be charged a $5 ATM fee by your bank, $3 in foreign transaction fees, and possibly an ATM fee of $5. This means you’ll be charged $13 for withdrawing $100 from your bank account.
✔️ If you’re traveling for 3+ weeks, ATM fees can add up quickly, which is why I use a debit card with no ATM fees and no foreign transaction fees, so I can withdraw cash as frequently as I like.
💡 In this post, I’ve included my favorite debit and credit cards that allow you to avoid ALL fees entirely!
the best credit card
no foreign transaction fees
I have an Amazon Prime account and an Amazon Prime Rewards Visa Signature Card, and this duo is amazing!!
The Visa Signature Credit Card offers no foreign transaction fees, so you’re only charged for the price of the items purchased while traveling. They also offer a variety of other travel benefits. Here are just a few:
- Travel and emergency assistance
- Travel Accident Insurance
- Lost luggage reimbursement
- Auto rental collision damage waiver
- Baggage Delay Insurance
- No annual fee
💡 A free Amazon account is fine since a Prime account is not required to apply for their Visa Signature Card, but the benefits are more rewarding if you do. If you’re interested in learning more about this card, I’ll include additional information at the end of this post.
rewards visa signature credit card
Amazon
SIGN UP HERE
No foreign transaction fees, lost luggage reimbursement, and so much more!
the best debit card
no foreign transaction or atm fees
The best way to avoid those pesky foreign transaction and ATM fees that I discussed earlier is with a debit card from Charles Schwab.
💡It’s important to note that this is the only debit card I use while traveling, and it’s used solely as my “travel debit card”. That means I keep a small amount of money (only what I’ll need during my trip) to avoid fraudulent activity, and others having access to my main bank accounts should the card be lost or stolen — hello, pickpockets.
Account benefits:
- No foreign transaction fees
- No ATM fees which means you can withdraw cash from any ATM in more than 200 countries and territories worldwide
- No minimum account balance requirement
- 0.15 annual percentage yield
This card offers no ATM fees, which is done with “ATM Fee Rebates”. What that means is you will be charged the ATM fee while you are traveling (don’t be alarmed if you see these charges on your account), then at the end of the month, all fees are automatically credited back to your account. Essentially, there are no ATM fees, it’s just handled in a slightly different way.
◈ If you’re interested in learning more, I’ll include additional information at the end of this post.
Charles Schwab
debit card
SIGN UP FOR A CHARLES SCHWAB ACCOUNT HERE
No foreign transaction fees on purchases, and no fees to withdraw from foreign ATM machines.
information overload?
here is a quick
to the point recap
If you’re traveling for 1 week or less, and don’t want to open any new accounts, order currency at your bank before your trip and visit an ATM as needed. There will be fees, so withdraw larger sums of cash less frequently to keep fees to a minimum.
If you’re traveling for 2+ weeks or are a frequent traveler, I suggest applying for the Amazon Rewards Visa Signature card and the Schwab Bank High Yield Investor Checking Account. Traveling with both of these cards (one is a credit card and one a debit card) will allow you to avoid any and all fees. I take both with me on every trip, no matter the length of time. They really make travel stress-free.
BONUS INFORMATION
YOU'VE READ ABOUT EACH CARD ABOVE AND WANT TO KNOW MORE
more info
amazon account & credit card
An Amazon account is free and allows you to apply for the Amazon Rewards Visa Signature Card.
If you decide to upgrade your free Amazon account to a Prime account, it’s $14.99/month, or there’s a yearly option; either way, the benefits are awesome:
Shipping: Free 2-day shipping on 100 million items and same-day or next-day shipping on a variety of others.
Video Content: Prime members can access a large selection of TV shows and movies to stream for free with Prime Video.
Books: Prime members also have access to free books that can be downloaded monthly to your Kindle.
Music: You also have access to Amazon’s music library of 2 million songs.
A Prime Account has so many benefits, and the best part is Amazon offers a Free 30-Day Trial.
Amazon Visa Signature Credit Card Benefits:
- 5% back on Amazon purchases with an eligible Prime membership (otherwise, you earn 3% back with the free Amazon account)
- 5% back at Whole Foods Market and Amazon Fresh
- 2% back at restaurants, gas stations, and on local transit and commuting
- 1% back on all other purchases
- 10% back on rotating categories
- Travel and emergency assistance
- Travel Accident Insurance
- Lost luggage reimbursement
- Auto rental collision damage waiver
- Baggage Delay Insurance
- No annual fee
💡 With 5% back, this card is amazing if you shop frequently on Amazon. When shopping, my purchase total is typically $0 since I usually have enough points to cover the entire purchase.
more info
Charles Schwab checking account / debit card
◈ How does Charles Schwab work? Well. First, let me start by saying this is not a “traditional bank” but more of a brokerage firm. There aren’t many locations (even in major U.S cities), and when you do find one, since it’s not a traditional bank, there aren’t any bank tellers. That means you won’t be able to deposit or withdraw cash from a branch (everything is done electronically through online banking).
💡 My thoughts after having my account for a few years: I was skeptical at first about going this route because I’ve always banked with a traditional bank. After extensive research and reading several positive reviews, I opened an account, which I’ve now had for several years, and it’s been great while traveling through Europe, especially for month-long trips (one or more times a year).
◈ My experience opening an account: There happened to be a Charles Schwab branch close to my home, so I was able to complete the sign-up process and open an account in person. There were computers located near the entrance that were “self-serve,” so technically I could have completed the process at home on my computer, but I found comfort in going into a branch since I was new to this type of banking. There was a woman at the reception desk who was available to answer my questions, and overall, the process was fairly simple.
💲 Charles Schwab does not deal with physical cash, so you can’t deposit or withdraw money at a branch, but you can link your bank (Chase, Bank of America, etc.) to your Charles Schwab account to transfer funds through their secure website.
Another option is to write a check from your regular banking account (Chase, Bank of America etc.) for the amount you would like to deposit into your Charles Schwab account and bring it in person which is what I did during my physical Charles Schwab branch visit. After having an account for years now, I find visiting a branch is somewhat useless since everything can be done via their website and over the phone. You can complete the process of opening an account online here.
◈ Another caveat of opening a Charles Schwab High Yield Investor Checking Account is that it’s technically an “investor checking account” which means it requires the account to be linked to their Schwab One Brokerage Account.
If you hear the term brokerage account and think, huh?.. you’re not alone. When opening my account, I had no experience with stocks or investment accounts, so let me quickly explain how it works:
When opening your account, the money you deposit (the first time) will automatically be added to your Schwab One Brokerage Account but all you need to do is transfer that money from the brokerage account to your Charles Schwab High Yield Checking Account (which is automatically linked) and then you’re good to go with using your card as you would any debit card.
Another thing to note is after that initial transfer, you don’t have to deal with the brokerage account again (if you don’t want to) and can keep the balance at $0. You can then link your regular bank account to the Schwab checking account and transfer money into it whenever you like.
💡Why I don’t use the Charles Schwab account as my everyday account: Personally, I prefer to walk into a branch to deposit cash and checks — call me old school. So I have chosen to continue banking with my primary traditional bank and use the Charles Schwab Checking Account as my “travel account”
How does that work? I deposit just enough money into my Charles Schwab checking account to cover expenses for the entire length of my trip. I can then withdraw cash at any ATM worldwide (with no fees). If I have any money left over at the end of a trip, it is kept untouched in the account, ready for my next trip.
Most banks offer an annual percentage yield of 0.01% but with Charles Schwab, it’s 0.15%, which means the money left in your account after each trip accumulates a bit more interest, which is nice.