It’s the time of year when many of us look forward to taking a vacation to relax and recharge. You’ve worked hard to save up vacation money, so keeping it safe is essential to enjoying a worry-free experience. Here are some tips to secure your vacation dollars while traveling and enjoying your destination.

Credit Cards

When traveling, using credit cards offers significant convenience and security. Credit cards are widely accepted, both domestically and internationally, making them a versatile option for payments in most locations around the world. They also provide an extra layer of security, as they can be easily canceled if lost or stolen, and often include fraud protection features. Using credit cards can be advantageous for managing expenses, as transactions are recorded, making it easier to track spending. Many credit cards also offer travel perks like insurance and rewards points.  

One tip on credit card use: It’s always a good idea to notify your credit card issuer of your travel plans, particularly for international travel or if you don’t often use your credit card outside of your usual geographical region. Otherwise your issuing bank may initiate a security measure when you attempt to use it in a new place by freezing your card. While this can typically be easily resolved with a phone call, it can temporarily put a crimp in your vacation.

Using Debit Cards

Using debit cards comes with risks. Debit cards directly access your bank account so if they are lost or stolen, your account funds could be compromised. Many debit cards do not offer the same level of fraud protection as credit cards, making it more difficult to recover lost money. If you do choose to use a debit card, make sure it uses chip technology for added security.

When using debit cards abroad, notifying your bank about your travel plans is advised. Many banks will not dispense cash in a foreign country if they are unaware of your travel. Bank ATMs are considered safer than ATMs not assigned to a bank.

‍Tips for Currency Exchanges in Foreign Countries

When it comes to exchanging currency, some advance preparation is advisable. By exchanging a small amount of currency before you leave home you have local currency to cover immediate expenses like transportation or tips. This allows you to avoid airport exchange counters and hotel desks that often charge higher fees and offer less favorable rates. Once you arrive at your destination, use local ATMs or visit a reputable bank for better exchange rates.

Prepaid Travel Cards

A prepaid travel card, also known as a travel money card or foreign currency card, is a convenient and secure way to manage money while traveling. These cards can be loaded with funds in various currencies, allowing you to make purchases and withdraw cash from ATMs abroad without the need to carry large amounts of cash. Prepaid travel cards offer fixed exchange rates at the time of loading, which can help you avoid fluctuations in currency values during your trip.

To find the right card for you, compare options from banks, credit unions, and other financial institutions. Look for cards with favorable fees, exchange rates, and additional perks. You can typically apply for a prepaid travel card online, in person at a bank, or through other financial service providers.

‍Money and Hotel Safety

Maximize hotel room safety to keep cash and cards secure when you are not carrying them on you. Utilize the in-room safe to store extra cash along with your passport and other valuables. Avoid leaving money or expensive items in plain sight. Consider carrying a minimal amount of cash and storing the rest securely – a measure you’ll welcome if you lose your wallet.

When using hotel safes, ensure they are properly locked and check online reviews about the hotel’s security practices before booking.

Safe Money is Fun Money

Overall, one of the best ways to protect your money while vacationing is to diversify how you carry it. Use a combination of credit cards, cash, and either traveler’s checks or a prepaid travel card. Keep money in a combination of places, as well: Wallet or pocketbook, money belt, or a hidden pouch. Invest in an RFID-blocking travel wallet to guard against thieves stealing digital credit card information with radio-frequency identification skimmers.

Finally, follow these money-saving travel tips from Fidelity to make the most of your vacation budget. Using a variety of financial planning and security tools – and staying alert in your surroundings – you can be treated to the relaxation that you’ve been looking forward to all winter!

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