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Cash and currency exchangeHard cash Wherever you're going in the world, you'll need some local currency for the first few days and for ongoing minor expenses. Order early from your bank, building society or travel agent at home if the currency you need is obscure. In addition, for many developing countries in particular, US dollars are useful to have as they are accepted in almost any country. Non-convertible currency will need to be picked up in-country. Shop around Currency charges vary from one outlet to the next. Don't just look at commission; the actual exchange rate varies too. Travel agents tend to be cheaper than banks and many have commission-free buy-back policies. Don't be fooled When you're getting money exhanges, wherever you are, it's sensible to work out first how much local currency you expect to get for the amount you're exchanging. That way if the teller works it out wrong you'll know straight away. In reality, however, tellers are rarely wrong. Black markets Some countries have flourishing black markets in currency exchange. You'll know if you're in such a place because touts will constantly pester you. The fact is, however, that rates are rarely better through the black market than through normal channels and, of course, black markets are illegal.
Travellers' chequesSafe and sensible Whatever the high-tech alternatives, travellers' cheques are still a safe and convenient way to carry money abroad. They're accepted in almost every country. How they work Travellers' cheques can be cashed in any country and carried safely because, if you lose them, you can cancel the old ones and order replacements. Unless you're going to be spending your whole trip in one developed country, for example Australia, order the cheques in US dollars. Dollars are the most widely accepted currency in the world. Also, ask for the cheques to be in small denominations so you can cash only what you need. Remember, you'll incur a commission charge every time you cash a cheque. Note the numbers Remember to make a note of the serial numbers - and keep that note separate from the cheques. Also leave a list of the cheque numbers at home. That way, if they are lost or stolen, you will be able to get your money back from the cheque provider by quoting the numbers of the cheques you've lost. Cashing travellers' cheques You can cash travellers' cheques at banks or other exchange facilities in towns all over the world. If you're travelling to more rural, out-of-the-way places, make sure you cash enough of your travellers' cheques to last you before you leave town.
Debit cardsEasy to get You should have no problem getting a debit card if you're over 18. These cards act like credit cards - so you can withdraw cash from ATM (cashpoint) machines around the world and pay for things with the card - except they take money straight from your account rather than send you a bill. This is an advantage since you don't risk over-spending. If you use your debit card at an ATM, no matter where you are in the world, you will get local currency out. It's pretty convenient but you don't escape foreign exchange commission which will be taken out of the same account. ATM locators ATM locators for Visa and Mastercard machines are very handy if you've arrived in a new country or town and need to find an ATM quickly. Click here >> for Visa Click here >> for Mastercard Cover your costs Obviously, if you use this method of carrying money, you'll have to make sure there are sufficient funds in your account to cover your expenditure. Or you'll need to get someone back home to top up your account.
Credit cardsEmergency funds It's a good idea to take a credit card overseas for emergency situations - if you need to leave somewhere in a hurry or require urgent medical treatment they're invaluable. You'll need to be careful since it's easy to run up a big bill which you can't pay off. This will incur interest charges after the end of the month in which you used the card (or immediately, if you draw out cash from an ATM). So persuade your bank manager to let you have one, but make every effort not to use it. Paying off the minimum amount If you're travelling long-term you'll need to organise a direct debit from another account to pay off the minimum repayment amount demanded each month.
Prepaid cardsSafe and sensible Prepaid cards are a relatively new thing. You load them up with cash and then just use them as you would a credit or debit card. They're ideal for travelling because they are not linked to your account, are fraud protected and don't involve credit, so no worries if it gets nicked. Also great if you don't have a bank account and need to earn some money, because wages can be paid directly onto them. Save as you spend Gapyear.com offer our own prepaid card with a global discount network attached. You can save hundreds on your travels just by using it to pay for your tours, hostels, activities and so forth. Find out more about the Gap Year Card
Money wiresUseful but expensive Money wire companies Western Union and Moneygram allow cash to be sent electronically in a matter of minutes from and to almost any city in the world. The sender arranges the transaction and explains which bank the money will be sent to; the sender will then need to give the sendee a reference number which will be needed - as well as a passport - to pick up the dosh. This can be useful in an emergency but it's a relatively expensive process. Also, it's rarely as simple as they make out and not worth using on a regular basis. Click here >> for MoneyGram Click here >> for Western Union
E-bankingNet or gross Most UK banks are now keen for customers to deal with them online - that way you do all the work and save the bank staff time and hassle. Talk to your bank before you leave and get an internet banking facility set up. This means you can keep an eye on the comings and goings of your account and stay in control of your bank balance wherever you are in the world.
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