Handling your Money

You have scrimped and saved for your gap year, so how is best to handle your money? Some people swear by travellers cheques, others by credit cards but a lot of it comes down to which country you are in and also what will make you feel more comfortable with your money.

Credit Cards / Debit Cards

Taking credit and debit cards is highly recommended. Visa and Mastercard are the most widely recognised companies all over the world so pretty much wherever you are you'll be able to access your money and withdraw in the local currency. However, some countries only accept Visa, others only accept Mastercard and some accept both- find out before you go and if in doubt, take both. With a debit card you know how much you have in your account and can keep track of your spending. A credit card is handy to have in case your debit card isn't accepted somewhere or if you want to buy something expensive- like a flight- and would rather not take it out of your budget. Just remember to pay it off when you get home!

Online Banking

Most banks offer this service but if your bank is one of the few that doesn't, open a new account with one that does. It makes keeping an eye on your spending so much easier, especially since ATM's abroad rarely let you see statements. You can view and download your statements and transactions- which is also useful if your card gets stolen so you can look out for irregular spending. Also, with online banking you can easily receive payments from home straight into your account in a matter of days depending on your bank.

When you are using internet cafes or shared computers, remember to clear the cache or erase your recent history to remove your bank details from the computer just in case their security certificates are not up to date.

Cash

You'll obviously need cash in the local currency for day to day spending in restaurants, paying for accommodation and local transport. If you are going to be on the road for a while, always make sure you have enough cash to last, especially if you are going off the beaten track; don't expect small villages to have ATM's and you do not want to get caught without! Research what the local currency and exchange rate is before you go- that way you'll have an idea how much to get out. Paying those special 'tourist prices' is part of travelling in a new country but it's a good idea to find out how much a taxi ride should be or a night in a hostel. Things like this will soon become second nature but when you first arrive if you at least have an idea how much you should be paying you could avoid getting too ripped off.

Haggling with your cash is all part of the fun of shopping abroad but don't bust a gut over 20p, it might not be a lot to you but for the shop owner this could help feed their family for a week, bear this in mind if you find yourself getting caught up in the thrill of a good haggle.

Travellers Cheques

If you like using traveller's cheques, by all means order them, but be warned that while most large cities will accept them, again if you are going off the beaten track you might be met by some puzzled looks when you try and cash one of your cheques! Remember to write down your serial numbers then you can reclaim them if you lose them.

Pre-Paid Card

These are a relatively new addition to your travel money options. Basically, you pay a small fee to apply for a card and then top it up online with your debit card or bank transfer. By managing your money this way, if your card gets stolen you have only lost the amount that is on the card, not all of your life-savings! However, they are currently only available in Euros or Dollars. Check out FairFX or Travelex's Cash Passport.