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How to handle money when you travel abroad

Most money lost abroad goes on fees, poor exchange rates and theft that a little planning would have prevented. Work out every cost in rand, carry more than one way to pay, and always choose to pay in the local currency.

Build the budget in rand

1. Fixed costs you have paid or booked: passports, visas, flights, accommodation, insurance and vaccines.
2. Daily costs abroad: food, local transport, sights, data and small purchases. Find typical prices in the local currency, multiply by the number of days, and convert to rand at today's rate.
3. A margin of about a tenth on the daily costs, in case the rand weakens before you travel.
4. A reserve for the unexpected, such as a missed flight or a visit to a pharmacy.

Daily costs often come to more than the flights. If they do, plan cheaper habits before you go.

What exchange really costs

The rate you see in the news is the middle rate between banks. You pay a worse rate, plus fees:

• the margin that the bank or bureau adds to the rate;
• commission or fixed fees on cash;
• foreign transaction fees on card payments;
• ATM fees, from your bank and sometimes from the owner of the foreign ATM.

Compare the total: how many rand will it cost, with all fees, to get a given amount of the foreign currency? Airport and hotel exchange desks often have the worst rates.

Always pay in the local currency

Card machines and ATMs abroad sometimes offer to charge you in rand "for your convenience". This usually uses a poor rate. Choose the local currency and let your own bank convert it.

Cards and cash

Carry more than one way to pay.

• Cards are widely accepted and safer than a lot of cash. Check your bank's foreign fees and daily limits before you go. A credit card may give more protection for bookings and disputes.
• Cash in the local currency is useful for markets, tips and transport. Get enough for the first day or two from your bank or an authorised dealer before you leave. After that, draw small amounts from ATMs inside banks or shopping centres, in daylight.
• A back-up card, kept apart from the first, and your bank's international emergency number saved on your phone and on paper.

Before you go

• Tell your bank your dates and countries, if your bank asks for this.
• Check that your cards will not expire during the trip.
• Make sure you can use your banking app abroad and still receive one-time PINs.
• Ask your bank about the current limits on taking money and cash out of South Africa, and declare cash where a country requires it.

Keep it safe

• Carry only what you need for the day, in a front or zipped pocket.
• Keep the second card and some cash separately, in a money belt or the safe where you are staying.
• Never keep all your cards, cash and passport in one bag.
• Cover the keypad when you enter your PIN, and do not accept help from strangers at an ATM.
• Check your account often for payments you did not make.

If money or cards are stolen

1. Stop the cards at once in the banking app or on the bank's emergency number.
2. Report the theft to the local police and get a written report.
3. Use your back-up card and reserve.
4. Tell your travel insurer.

This guide is based on Chapter 5 of Your First Trip Abroad, which includes a budget and money plan to fill in.