Money Abroad
There are no questions asked more frequently about travel, than those asked about money.
Use local currency.
Contrary to what many Americans believe, not everyone wants or appreciates US money. It has to be exchanged to local currency for most people to use it. There are exceptions, countries such as Ecuador where US money is the de facto exchange medium or the Caribbean where so much exchange is done in US dollars, however, in Western Europe, Canada, and much of the developed world it is a hassle for local merchants to accept US money.
How Do You Get the Money?
The overwhelming choice for experienced travelers is to use an ATM machine with a debit card from your bank at home. You will get the best exchange rate and pay the lowest conversion fees. Be sure your bank knows that you are going overseas and be sure that you know the card's daily limit. For as many purchases as you can, use a credit card. You will get a better rate of exchange and need less cash. Do not use credit cards as a primary source for cash because you will be charged interest from the time of withdrawal, to avoid this you may be able to prepay into your credit card, check your card company.
Travelers Checks
Even if you get them for free they are not always welcome. In many parts of Europe, assuming you find a merchant who will accept them, you will be charged a premium on the exchange rate, getting even less than for cash or credit card. This is an historic thing not likely to change now that electronic banking has become so popular. TC's require more handling, but they are a secure back up. If you do get them, get them in your home country's money so you can cash them when you get home.
What if I Lose My Credit Cards?
If you are traveling with a companion always carry different cards so that you will have a good one after calling the credit card company to cancel the stolen or lost card. Keep a list of cards and emergency contact numbers and call quickly if the card is lost or stolen.
Rule of Thumb
Always plan on spending more than you planned on. Self explanatory, stuff happens, vacations are fun, and that little restaurant with the stellar reputation just isn't to be found on Main Street.
