How to manage your travel money better

Put your hand up if you get confused about currency exchanges, withdrawing cash abroad and keeping your money safe while travelling. Just like toilets, takeaways and transport, every country has its own quirks and challenges for travellers when it comes to cash. It can be hard to work out the most effective way to manage your money abroad and to reduce the amount you lose to hidden costs or fees. Add in the paranoia about the best way to keep your money safe in a hostel or on the street, and it is probably one of the things we all worry about far too much before and during a trip.

And if you think this is only a problem for people taking long trips through countries with different currencies and levels of development, think again! Even on a weekend away in Europe there are a number of simple mistakes that travellers make, resulting in a more expensive and stressful holiday.

Example itinerary: Albania group tour

Never exchange money at the airport

The terrible exchange rate here is based on desperation and your lack of preparation – you will lose far more than you expect.

A handy, free little app on your phone is especially useful if you are travelling through different countries with different currencies. Remember that the app shows the pure exchange rate, so you will never get such a good rate from a bank, app or bureau de change. However, it is a good indicator of how much hidden commission someone may be charging you for exchanging foreign currency and to quickly become familiar with local prices in a new place.

Since you will never again exchange money at the airport, you should know that online exchange services usually offer better rates for getting foreign currency than doing it on the high street.

How much cash should you take abroad? That really depends on your own preferences, spending habits and the infrastructure of the country you are visiting.

Be aware that some countries, such as Morocco, have currency restrictions that make it very difficult to obtain banknotes outside their territory, while other countries may have only very small amounts of their currency available for exchange. In this case, your best option is to find a cash machine at the airport when you land; this will tide you over until you can visit a bank or exchange office and change or withdraw larger amounts.

Do not take only one bank card with you

Cards can get lost, be stolen, stop working, mysteriously snap in half or be swallowed by a cash machine. If you are going travelling – especially on a longer trip – you should take at least two debit cards and a credit card abroad.

And now the important part… always keep them in different places! Never store them together.