Travel Personal Finance Tips for Before, During, and After Your Vacation
Have you returned to the friendly skies yet? As the nation reopens after the pandemic kept us at home for more than a year, you may be joining the ranks of travelers ready to get out of the house and experience the world again.
Whether you plan to fly internationally or stay stateside, you can enjoy your return to normal even more by taking some precautions with your money. Here are some personal finance steps for before, during, and after your travels.
Before You Go
First thing’s first: Check the latest COVID-19 regulations for traveling. We won’t cover them in this article since they’re sure to change, but this CDC resource page can help get you started.
Have a travel budget. By saving money for your travels beforehand, you’ll have a number to gauge your vacation spending by—which can help you avoid overspending. If you travel regularly or you’re planning a once-in-a-lifetime dream vacation, consider talking to your fiduciary financial advisor to help integrate your travel money into an ongoing financial plan.
Buy travel insurance. Trips can go wrong—luggage gets lost, and travelers get sick or injured. Travel insurance can reimburse you for instances that are out of your control, such as a flight gets canceled. The medical options are essential for those locales where your health insurance won’t apply.
Depending on your destination, roaming fees may not be an issue. But your cellphone bill can skyrocket if roaming fees do apply. Call your cellphone provider before you go to find out if they have travel plans to avoid getting charged.
You probably don’t want to worry about your mortgage while you’re on vacation. Consider automating bills so that they get paid while you’re gone.
Find out if your credit card will ding you for using it abroad. There are credit cards without foreign transaction fees—consider applying for one if your usual credit card will charge you. While you’re at it, apply for two cards (see the “While You’re on Vacation” section for details).
Talk to your banks. Your bank will likely notice if your credit card is suddenly charged from another country. Contact them before you leave to let them know where you will be, even if you plan to vacation domestically.
Make copies of important documents. These include your passport, driver’s license, visa, and credit cards. If the originals get lost or stolen, you’ll want the copies. You can print them out and keep them in a secure location, store them on a flash drive, or have them online.
While You’re on Vacation
Have two credit cards for your travels. If one card gets stolen and the bank freezes your account, you can use the second card to keep your vacation going. Keep one of the credit cards on you, and store the other in a secure place, such as the hotel safe.
Limit the cash you carry. You should have some cash on you for on-the-go purchases and emergencies. But because money is insecure, plan on using your credit card for most of your transactions.
Understand the local currency. It’s easy to take advantage of a tourist who doesn’t understand the local currency—try to get familiar with the various coins and bills before you use them. As far as the exchange rate, you have options when converting U.S. dollars to your destination’s currency. Read “Best Way to Exchange Currency When Traveling” for useful pointers to select the option that’s right for you.
Don’t use public Wi-Fi without protecting your information. We get it—that free airport Wi-Fi is convenient. But using it can leave you vulnerable to identity theft and financial theft. A virtual private network (VPN) can enable you to use public Wi-Fi by encrypting your information.
When You Get Home
Take some time to review your bank and credit card accounts for discrepancies. If a purchase price is inaccurate or you have transactions that shouldn’t be there, contact your bank.
Your vacation should be a time you don’t worry about your money. With some sensible money management precautions, you can help safeguard your money and budget, and enjoy your time away even more.
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