travel money advice

What should you use to pay for your expenses whilst you are overseas? Cash? ATM cards? Credit cards? Travellers Cheques? Pre paid credit cards? This jafatravel.com page provides travel money advice to ensure you find the cheapest way to transact whilst backpacking.

You can also read about tipping guidelines.

The best way to pay for your expenses whilst on your backpacking trip is to carry a combination of cash, ATM cards and credit cards.  This provides flexibility with methods of payment and security as you are not totally reliant upon one form of payment. As a budget traveller or backpacker, this is important as it minimises the transaction costs and bank fees that you could be charged.

This travel money advice is something for you to consider. Hopefully it helps you reduce the fees you need to pay.

Why carry a combination of cash, ATM cards and credit cards?

It offers flexibility and minimises the transaction costs and fees that you need to pay. There's no point spending money on fees when you can put your hard earned money to better use.

Everywhere you go, you'll need cash. It is the most flexible form of payment and everyone accepts it.  You can't buy certain things with a credit card can you? (You can have a think about what you might be buying!).

You also shouldn't change your money before you leave. It will cost you exorbitant fees in terms of commission and the spread on the exchange rate. Plus, you may not be comfortable carrying all your cash around with you as soon as you depart.  When departing, I make sure I have about $100 in cash with me. It doesn't matter what currency, as long as it is something widely accepted like US, Euro, Pound or AUD.

Because it's expensive to obtain currency before you leave, make sure you carry your ATM card. Unless you're travelling around an African country or a developing country, you'll generally find an ATM machine at the airport when you arrive. The exchange rate you obtain is very competitive and it saves you from carrying a lot of cash around with you. But there are charges associated so you may want to limit the number of ATM withdrawals you make.

As ATM cards have transaction fees associated, stick to credit card payments where ever possible. The exchange rate you obtain is just as competitive as an ATM card and in most cases, far better than any cash conversion you will be able to find. The charges are a standard 1-1.5% of the transaction amount which is less than the transaction costs of ATM cards when you take into account withdrawal costs and conversion fees.

This combination will present you with many occasions where you'll be spoilt for choice. It will also minimise the fees you are required to pay.

However, you should decide for yourself what you use. This travel money advice only works for some and you may find a cheaper way. Consider methods of payment which goes through the pros and cons of each method of payment. After all, you want to be able to enjoy yourself whilst you away.

Read about:

• methods of payment
• tipping guidelines