Avoid These 4 Financial Pitfalls While Traveling

Where will you go this winter?

Travel agents say Portugal, New York City, Mexico, and London look to be the most in-demand this season. Whether you’ll be seeing Big Ben from a double-decker bus or relaxing on the beach with a cold drink in hand, it pays – literally – to be smart with your money.

Still, people tend to make some common mistakes in their rush to be on vacation.

1. Traveling Without a Budget

Budgeting can be painful, but the extra work pays off. Start with the big expenses, like your transportation and lodging. Then, do your research – websites and books like Lonely Planet often provide estimates for how much meals might cost in a given location. Budgeting software like Mint can help you track how you’re doing during the trip and gives suggestions on how to save.

2. Not Telling Your Bank or Credit Union

Many banks will quickly shut down your account if a transaction seems suspicious. While that’s typically a good thing, swiping your credit card abroad will likely set off the same red flag, and you could end up locked out of your account on vacation. Letting your bank or credit union know where you’re going ahead of time ensures this doesn’t happen while continuing to help prevent any actual suspicious transactions.

3. Never Learning the Exchange Rate

If you’re in a different country, knowing the exchange rate can help you keep a handle on how much you’re actually spending. These days, smartphone apps can do the math for you— but even travel guru Rick Steves says that’s not necessary.

“You just need to know the rough exchange rates. I see no need to have it figured to the third decimal,” he writes. “...Survival on a budget is easier when you’re comfortable with the local currency.”

Cash exchanges can be expensive. Use as little cash as possible while you travel, and don’t exchange to the local currency at the airport— you’ll end up losing around 15 percent, versus 8 percent anywhere else.

4. Falling Victim to Pickpockets

Everyone has an opinion on where is best to keep your money while traveling. Some say a money belt worn under your clothing is best. The most important thing, according to travel experts, is really to keep your cash and cards in multiple safe spots. That way, if a thief does find some of your money, you won’t be wiped out.


A few smart choices can make a world of a difference this travel season. Know where you’re going? Let us know at First Choice Credit Union, and check your finances as you go with our mobile banking app.