6 Ways to Save Money When Traveling Abroad

Travel has become more expensive—a fact you're probably well aware of if you're taking a trip overseas. While you can't put a price on making memories that will last a lifetime, there's also no reason to spend money on fees you can easily avoid. 

Here are six tips for keeping costs low and managing your money during your next trip abroad. 

Most credit and debit card issuers charge foreign-transaction fees, which typically run between 1% and 3% of the purchase price, as well as ATM fees. That might seem like a minor expense per transaction, but all those extra charges can really add up.

Look into the fees imposed by your banks and credit card companies. (The overall fee is often a combination of two fees, one from the issuing bank and one from the card company.) And note that even if you have a fee-free card, ATMs or merchants may still charge a fee. Always check your card's terms and conditions to find out exactly what fees you're responsible for.

Airport currency kiosks may be convenient, but they also tend to be pricey, charging anywhere from $5 to $15 to exchange money. Even so-called no-fee exchanges tend to make a profit off their highly unfavorable exchange rates.

Cash withdrawals from ATMs are generally the best choice for day-to-day funds—but, again, beware of transaction fees. Some banks impose a flat fee per withdrawal, while others do not and may even refund those levied by others. 

If you anticipate needing cash, exchanging currency at your local bank or credit union before you leave may provide a lower rate. Once you arrive at your destination, you might be able to get a decent exchange rate at your hotel as well.

Many travelers are enticed by the convenience and familiarity of receiving bills—at restaurants, for instance—in U.S. dollars. But this new trend, called dynamic currency conversion, often comes with an unfavorable exchange rate, transaction fees, or both. So, when asked if you want to pay a bill in the local currency or in U.S. dollars, go with the local option—unless you can verify that the cost is negligible and worth it, to you, for the familiarity factor.

Nothing ruins a trip like a lost or stolen wallet, so take a picture of the contents of your wallet, including the fronts and backs of credit, debit, and insurance cards so you can find all of those important phone numbers to call in case of emergency. Keep a copy on your phone—or better yet, in the cloud—along with pictures of your passport and any other important documentation. 

While you're at it, contact your cell phone provider regarding phone and data packages while overseas. Your plan may not work in your final destination, or you may find a cheaper, temporary option to use instead. 

Also, be sure to activate fraud alerts for all accounts that offer them so you're notified right away of suspicious activity. Sophisticated cybercriminals are often able to capture your financial information—even if your cards stay in your possession. 

You may be able to set up a travel notice to have your bank monitor your accounts for fraudulent activity when traveling. When travel monitoring is active, debit and credit cards are scrutinized for high-risk transactions.

Before you book your trip, see if your credit or debit cards offer travel-related perks that can save you money or ease your journey. For example, many offer hotel and restaurant reservation assistance, free Wi-Fi access on eligible flights, and even discounts on certain types of accommodation and transportation. Review your cards' benefit terms, or call your providers for full details.

Having your travel plans derailed is stressful enough, and the potential costs to get back on track can only add to your worries. You may end up spending hundreds to thousands of dollars due to disruptions (like cancellations, delays, missed flights or missed scheduled activities), lost baggage or theft, accidents, or illness requiring medical care. 

Your card may have coverage for some of these risks, but you can also get additional protection. The price of travel insurance is typically about 5%–6% of your travel cost, and while this insurance may not feel like a money saver at the time of purchase, it can be a life saver when you need it the most. Contact your insurance provider for more information.