How to Manage Your Money When Traveling for the First Time

First-time travel can be thrilling and fulfilling, but it can also be very stressful when it comes to handling your finances. A well-thought-out financial strategy can help guarantee a stress-free trip, regardless of how long or short your trip is. Here are some money management lessons I wish I had learnt before my first international travel.

1. Create a Travel Budget

Before you even leave home, setting a budget is one of the most important things you can do. It’s easy to get carried away with the excitement of new places, but having a budget will help you track your spending and avoid unpleasant surprises. I recommend breaking your budget into categories, such as accommodation, meals, activities, transportation, and shopping. Be realistic about how much you’ll need in each category based on the destination.

Tip: Always have a little wiggle room in your budget for unexpected expenses. Things like extra tours or souvenirs can pop up, and it’s better to be prepared.

2. Use a Credit or Debit Card with No Foreign Transaction Fees

When I traveled abroad for the first time, I realized that carrying a lot of cash wasn’t practical or safe. Instead, I opted to use my credit or debit card for most of my purchases. To avoid additional fees, I made sure to use a card with no foreign transaction fees. Many cards also offer travel rewards or points, which can help you save on future trips.

Tip: Always inform your bank or credit card company before you travel to avoid having your card blocked for suspicious activity.

3. Carry Some Local Currency

Even though cards are widely accepted around the world, there are still some places where cash is king, such as small shops, public transportation, or local markets. I always make sure to have a small amount of local currency for emergencies or situations where cards are not accepted. I usually exchange a little money before leaving and withdraw more once I arrive, using an ATM with low withdrawal fees.

Tip: When exchanging currency, avoid using exchange kiosks at airports or tourist spots, as they often have unfavorable rates. Instead, withdraw cash from ATMs that are in secure locations.

4. Track Your Spending

While I was abroad, I found it helpful to track my spending on my phone. There are a number of apps available that let you categorize your expenses and see how much you’ve spent in real-time. Tracking your spending will help you stay on top of your budget and avoid going overboard.

Tip: If you don’t want to rely on an app, a simple notebook will also work. Just jot down each expense as you go, and you’ll have a clear idea of where your money is going.