Travel Secrets: Make Your Money Go Further on the Road

Previously in this Travel Secrets column, we discussed ways to stretch every hard earned dollar while planning for a trip. This week, our focus is on making every dollar go further in the magical midst of travel.
You’ve created a realistic budget. Invested in a travel fund. Selected a reward-rich credit card, with points already accumulating. You even scored a shockingly cheap flight through smart research. You’re ahead in the savings game and don’t want to blow it now. Yet even the most determined and dedicated among us risk getting infected with a condition that consumer advocate Andrea Woroch aptly calls vacation brain. The minute our feet hit new soil and an exotic breeze sweeps past our cheek, it’s easy to get swept away and throw financial caution into that wind. In other words, to spend, spend, spend.
So how can we stay cool on daily spending during the heat of travel? By making smart decisions in areas that won’t dampen the experience while seeking out value at every turn. For instance, a good place to start is with this golden rule: Do As Locals Do. Finding a balance between tourist attractions and more local activities is where sweet savings reside and a destination’s true essence shines. Using the DALD philosophy, here’s a specific conundrum: Paper or Plastic? Most of us use a mix of cash and credit when traveling. With either payment method, what at first may seem like small transaction and withdrawal fees can add up to big spending … or, savings, if used smartly.
Here are a few tips—broken into categories—to help you make the next vacation one that doesn’t break the bank well into the future.
Cash
Avoid high fees at money exchange kiosks, in particular airport outposts, at all costs. Your bank ATM card delivers the best exchange rate. To maximize cash withdrawal savings, ask these questions before travel. Is my ATM card chipped? If not, it’s likely the card will not work in a foreign ATM, potentially forcing you to higher cost withdrawal and payment methods.
What are my withdrawals fees?
“When using your debit card internationally or withdrawing cash abroad, expect extra fees from both your bank and the merchant,” says Woroch. “According to NerdWallet, your bank can charge anywhere from $1 to $5 for local currency withdrawals, plus 1% to 3% of the transaction amount.”
Discuss (in- and out-of-network) withdrawal fees with your bank.
Many institutions offer a range of account types with advantages for different phases of life. For instance, you may be eligible for upgrade to a premium account not possible when initially enrolled. Top tier accounts often offer a set number of withdrawals – domestic and international – for free each month.
Woroch also recommends researching international transaction and withdrawal fees offered through online savings accounts for better rates.
What is my maximum daily withdrawal limit and can the amount be raised?
Taking out a smaller number of larger cash withdrawals is a smart way to save on fees. However, be sure not to keep big wads of cash in one place. Leave a stash in your hotel room’s safe while exploring.
Credit
Depending on your destination, paying by credit for purchases like lodging, train tickets, and expensive dinners is a no-brainer. As long as you employ a card with no international transaction fees.
As The Points Guy Zach Honig discussed in the last column, choosing a card with no transaction fees and the most value for your preferred type of travel is key to saving money. Plus, with every travel purchase, you rack up points for future travel. However, Woroch cautions to keep in mind that in many countries cash is the preferred method of payment and local merchants may charge more for paying with a card. Always ask before paying.