How to handle your money when travelling

(NC)—You can't leave home without it – cash, cards or traveller's cheques. Consider these tips for handling your money when travelling.

Think Ahead
"You'll require enough funds to cover your needs," advises chartered accountant Gary Fitchett, president, IBI Corporation in Port Perry. "This depends on how long you're away and where you are travelling.

"Always make sure you carry some of the local currency – don't plan on cashing traveller's cheques in the airport when you arrive. Depending on the country, consider taking some U.S. dollars. It's still the universal currency and, even though it's less in favour now, can be used anywhere. Ensure your credit card limits are sufficient – is enough available for an emergency?"

Think Security
"Take precautions," adds chartered accountant Sandra McLeod, owner, Expedia Cruise Ship Centres-Etobicoke, in Toronto.

"Advise your bank and credit card company that you are travelling, so they are alert to any unusual activity. Take a maximum of two credit cards, and make copies before you go, leaving one at home and taking another with you. Keep it in a separate place, and call your bank immediately if your card is stolen or compromised."

To use your debit card outside North America, you will need the same four-digit PIN that you use at home – make sure you have enough funds to cover withdrawals. While traveller's cheques are secure and replaceable, they may not be accepted everywhere.

Think Insurance
People usually think of insurance when travelling for pleasure, not business. "The fact is, you always need it," advises McLeod.

"Paying on the spot for emergencies is expensive. Find out what your credit card or employee coverage includes, such as trip cancellation or interruption, and emergency medical. If you are not completely covered, purchase traveller's insurance and take the policy number with you. If you travel extensively and have no employee insurance coverage, consider purchasing annual travel insurance – it's more economical."

Think Safeguards
"Always be aware of your surroundings and avoid unnecessary risks," continues Fitchett. "Some countries are known for lax security and crafty pickpockets. Make sure your handbag has zippered pockets, your wallet is secure (not stashed in your hip pocket), and consider wearing a money belt. When using your credit card, make sure the merchant makes only the two required copies, one for each of you, and don't leave your cards lying around. Store your traveller's cheques and cash in separate places, so you always have an emergency backup.

Cash to Go?
"It may be convenient to get cash at your hotel as long as you're prepared to pay a premium," Fitchett explains. And, while many developing countries have black markets where you may get a better rate, it's usually better to convert your funds at a bank.

"You can be easily cheated on the black market," agrees McLeod. "Only carry the money you need and store the rest in a safety deposit box (you can often rent one at the front desk). Then what? Enjoy your trip."

More information on this topic is available from a chartered accountant.

Source: www.newscanada.com