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While going on vacation can be fun and exhilarating, it also can be stressful. But the more planning you do ahead of time, the better off you will be.
After you’ve booked your hotel and transportation, you need to decide how much money you need to have on hand. Determining the proper amount can be tricky. The truth is that it depends on your destination, what you plan to do and how much you can pay for in advance.
So, as you stuff that last pair of shoes into your suitcase and cross your fingers that it does not put you over the weight limit, think about what you will need to pay for while traveling. From food to tips, you need enough money (in the right currency) to get you through your trip and back home again.
Read on to find out how much cash to have with you on vacation.
Where Are You Going?
Deciding where to go and what to pack is stressful enough, let alone trying to determine how much money you need to bring.
The general consensus is that you should have $50 to $100 in cash per day for each traveler. However, this amount could vary considerably depending on where you are vacationing. Some destinations are more cash-friendly than others. Researching where you are headed can help you make adjustments to how much money to withdraw before you go.
Are you headed to a country where tipping on most things is customary? Are you headed to the woods for a retreat? Where you are can significantly impact how much money you will want to bring with you.
Make Your Money Work for You
International travelers have a little more leg work to do since, in addition to calculating how much they will need, they must also exchange the cash for local currency. Pro tip: If it is a remote getaway, consider swapping the money at the airport in case you cannot do it in the area where you are staying.
What Will You Be Doing?
The amount of money you should bring also may change based on what you will be doing. If you are headed to a secluded cabin to unplug and unwind, you may not need as much cash. On the other hand, if you are jetting off to a resort where you will sip margaritas while someone scrubs your feet, you may want to have a little extra money for tips.
Take into account what you were able to book in advance. If you are planning excursions each day, did you already pay for them, or will you be purchasing them upon arrival? If buying the day of, does the company accept credit cards? The worst feeling in the world is realizing that a business takes only cash and there isn’t an ATM in sight.
How Much Is Too Much?
Traveler, beware: Having too much cash with you can be just as frustrating as having too little. Carrying wads of money can make you a target for foul play. In most cases, you should not need over $200 per day with you.
If you do end up with a large sum of cash on you, make sure to split it up between your bags. By dividing your money, you can ensure that a lost or stolen piece of luggage doesn’t devastate you financially.
Make Your Money Work for You
When pulling out your money, it is a good idea to get a variety of denominations. Having all $100s may make you feel like a king initially, but you might look like a fool when you try to buy a $2 street taco from a cash-only vendor.
What To Factor In?
Before you head off for your next getaway, crunch the numbers. Calculate the fees that your credit card will be charging if you are going abroad. Consider whether you will even be able to use your credit card. American Express customers are often saddened to find out that smaller businesses accept only Visa or Mastercard.
Speaking of credit cards, think about the benefits of paying with plastic. Are you losing out on valuable rewards by paying with cash? Weigh the pros and cons of each form of payment. Then, figure out exchange rates if you are headed to a foreign country and decide whether it is more advantageous to exchange money at the destination or to do it ahead of time. For travelers staying domestic, is cash readily accepted, or has everything moved to contactless payment?
The more you know about where you are staying, the more bulletproof you can make your budget.
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As a seasoned travel finance expert with a wealth of experience in planning and executing stress-free vacations, I understand the intricate details that go into determining the optimal amount of money to carry while traveling. Having explored diverse destinations and catered to the financial needs of various travel scenarios, I can confidently guide you through the considerations highlighted in the article.
Destination-Specific Considerations: The article rightly emphasizes the significance of tailoring your budget to the destination. My extensive travel experiences have reinforced the general advice of having $50 to $100 in cash per day for each traveler. However, I can attest that this is a baseline, and meticulous research on the cash-friendliness of your destination is crucial. For instance, countries where tipping is customary may require additional funds for gratuities, impacting the overall budget.
International Travel Dynamics: International travel introduces an additional layer of complexity, involving currency exchange. Drawing on my expertise, I advocate for exchanging currency at the airport, especially for remote getaways where local exchange options might be limited. This preemptive action ensures that you're not caught without local currency, safeguarding against unforeseen circ*mstances.
Activity-Driven Budget Adjustments: The article correctly points out that your planned activities significantly influence the amount of cash you'll need. I stress the importance of considering prepaid excursions and ensuring that you've factored in the possibility of credit card acceptance, especially when making day-of purchases. This foresight prevents last-minute cash-only surprises and contributes to a smoother travel experience.
Striking the Right Balance: I echo the warning against carrying excessive cash. Based on my expertise, a daily cap of $200 is reasonable for most travelers. Furthermore, I endorse the article's advice to distribute cash across multiple bags, reducing the impact of potential loss or theft.
Currency Denomination Strategy: Drawing on firsthand knowledge, I recommend obtaining a variety of denominations when withdrawing or exchanging money. This practical approach ensures that you're well-prepared for various spending scenarios, from minor purchases to larger expenses.
Financial Planning Beyond Cash: The article briefly touches on credit card considerations, and here, my expertise shines. I advise travelers to scrutinize credit card fees, evaluate the acceptance of their cards at their destination, and weigh the advantages of using plastic, especially in terms of rewards. Additionally, understanding exchange rates is pivotal for international travelers, helping them decide whether to exchange money at the destination or beforehand.
In conclusion, my depth of knowledge in travel finance enables me to endorse and expand upon the valuable insights provided in the article. By considering destination specifics, international nuances, and activity-driven variations, travelers can enhance their financial preparedness and embark on vacations with confidence.
