Practical Money Tips for your Next International Travel
We get it—after putting travel plans on hold for more than two years, taking big trips since the pandemic only feels right. You deserve to hop on a plane, treat yourself to a few vacation upgrades, and explore a different country again. You’re now willing to splurge more than you would have in the past. And why wouldn’t you? You only live once.
Still, it’s important to keep your spending in check especially if you’re traveling abroad. Proper planning is key to pulling off your travel goals without going broke. Plus, when you know how to handle your money well during your travels, you’ll get to enjoy your trip longer.
Here are practical money tips to keep in mind so you can get the most out of your next international trip.
Research about currency exchange rates and fees
Experienced travelers take time to understand where and how to get the best exchange rates. Reliable sites like Google Finance, Exchange-Rates.org, and XE Currency will tell you about the current rates, but factor in conversion fees and you might end up losing money that you could have spent for more necessary expenses. It’s up to you to find the best strategy in terms of exchanging money.
There are a lot of ways to convert your pesos into the currency of the destination you’re going to. One of which is to buy currency before the trip for a hassle-free experience. Travelers recommend money changers located in Makati Cinema Square or along Malate, Manila, which offer competitive rates compared to airport kiosks.
In some countries like Hong Kong, Thailand, Singapore and Japan, frequent flyers opt to use their debit cards directly or withdraw from Automated Teller Machines (ATMs) in their destination for better exchange rates. Prior to your travel date, notify your bank of your plans so they can activate your debit card abroad. Ask for the charges and, if applicable, maximum withdrawal allowed. To avoid multiple overseas charges, experienced travelers plan ahead and withdraw only once. However, note that in some cases, you may also be charged a certain fee for unsuccessful withdrawals.
If you’re a Visa or Mastercard credit card holder, directly using your cards for your purchases is also an option. Many travelers say it’s cheaper, and you can even earn points on your account. As always, you just have to notify your bank prior to your travel date and get their international credit exchange rate.
Here’s the foreign exchange conversion fees of the most common banks in the Philippines:
|
Bank |
Foreign Exchange Conversion Fee |
|
Asia United Bank |
Transactions made in foreign currencies shall be automatically converted to PHP using Mastercard's selected foreign exchange rate. From the Peso conversion, AUB will add Mastercard's Issuer Cross Border and Currency Conversion Assessment Fees. A 1.5% service fee shall be charged by AUB and shall be added to the sum of the Peso Conversion & Mastercard Fees |
|
Bank of Commerce |
2.5% (consists of Mastercard's assessment fee and BankCom service fee) |
|
Banco de Oro (BDO) |
1% Cross Border Fee (except 0.80% for retail transactions and 0.10%for cash advance for UnionPay) and 1.5% Foreign Exchange Conversion Fee for Mastercard/VISA/JCB/Diners. For American Express, a conversion factor of 2.5% will be applied, of which, 1% is retained by American Express. |
|
Bank of the Philippine Islands (BPI) |
1.85% |
|
Chinabank |
2.50% |
|
Citibank |
Up to 3.525% of the converted amount |
|
HSBC |
2.5% of the converted sum plus reimbursement of the assessment fee charged by Visa/MasterCard to HSBC equivalent to 1% of the converted sum |
|
Land Bank of the Philippines |
Based on prevailing Mastercard Foreign Currency Conversion Rate plus 2% Assessment and Service Fee |
|
Maybank Philippines |
Platinum: 0.75% of the converted amount using the foreign exchange rate of Mastercard/Visa, plus the 1% assessment fee of Visa/Mastercard
|
|
Metrobank |
Foreign exchange will be based on MBTC's FOREX selling rate at the time the transaction is posted. Fee includes 2.5% processing fee plus 1% assessment fee charged by Mastercard/Visa |
|
Philippine National Bank |
2.5% of the converted amount using Mastercard/ Visa/UnionPay’s conversion rate of the day |
|
RCBC Bankard |
3.50% representing the Mastercard/Visa/JCB/UnionPay assessment fees and the Bank's service fee. For foreign currency transactions converted to Philippine Peso at point of sale, whether executed in the Philippines, abroad or online, a service fee of 2.25% shall be applied to transactions amounting to Php1,000 and up, or its foreign currency equivalent |
|
Robinsons Bank |
3% |
|
Security Bank |
1% Mastercard Assessment Fee and 1.5% service fee |
|
Union Bank |
2% to 3% |
Source: Bangko Sentral ng Pilipinas
Pay using a mix of payment options
One of the smartest ways to manage your expenses is to travel with cash, cards, and, in some countries, GCash. Contrary to the popular belief, carrying a mix of these is an advantage more than it isn’t—if planned accordingly. Not only can it help you manage your expenses, it can also save you from a lot of hassle should you encounter an establishment that only accepts one payment option.
Assign an expense type for each payment option to easily monitor your purchases and put a cap on your spending. Food and transportation? Cash. Flights, hotel, and activities? Credit or debit card. Shopping and emergency fund? GCash. You can tap and spend using GCash Overseas—with no service charges—in Japan, Australia, Canada, Italy, the United Kingdom, and the United States, to name a few.
Learn about local customs and transport systems
Educating yourself about a country’s local customs and transportation system helps a great deal in making smart purchasing decisions.
It will save you a lot of travel money if you learn and embrace a country’s public transport. Use apps such as Rome2Rio, Google Maps, or Moovit to know exact bus times and the best ways to navigate destinations. In Asian countries, it’s often convenient to use Grab or taxis. And much like here in the Philippines, it will also cost you a lot. Learn a bit of the local language so you’ll feel more comfortable in your commute.
If you’re into shopping, it’s a must to arrive prepared so you can haggle effectively, choose the right vendors, and stay cautious of high-pressure sales tactics. Try to shop away from tourist markets where the prices are inflated. If you really must, take time to research the approximate value of the item you’re trying to buy so you won’t have to overpay. If your gut tells you it’s a little bit pricey, don’t give in easily and politely walk away to discover other shops.
Create a travel budget—and stick to it
It’s easy to lose track of your spending when in a new country. To avoid this, create an itinerary that lists down transport details and the activities, restaurants, and places you want to try and visit. Of course, it’s always fun to leave room for spontaneity but having a plan will help you accurately create a travel budget.
We’re all guilty of the “I’m already here so it’s okay to splurge'' mindset that dangerously gives us permission to spend more than necessary. And while nothing compares to the joy of indulging your travel cravings, no one really wants to go home feeling left in the money drain. Calculate your spending at the end of every trip day. There are now travel trackers like TravelSpend and TrabeePocket that monitor your spending and convert your expenses into your home currency, making it easier for you to stick to your budget. If you’re traveling with your friends, you may also use the Splitwise app to track group expenses and easily compute everyone’s share of the bill.
Take advantage of travel promos
You can score a lot of travel deals if you know how to look in the right places. Savvy savers dedicate time to researching deals and discounts before making a big purchase, especially on flights and accommodations. Book a flight when airlines publish a sale, and get early bird or last-minute offers from popular hotel marketplace apps for huge discounts. If you’re a credit card holder or a member of travel reward programs, maximize your membership by keeping yourself updated on exclusive flight, hotel, or food deals.
For tour and dining destinations, you may check the websites and social media pages of the place you want to visit, or drop a DM and ask if they have ongoing promos. Travel websites like Klook and KKDay also offer discounted deals on popular destinations. Sometimes, your favorite travel influencers might even have a promo code you can use. It may take a lot of work, but the up side is you’ll be able to get discounts that will make your trip much more enjoyable.
Out-of-the-country trips can be expensive, but it’s possible to minimize cost with careful planning and a whole lot of discipline. Keep these money management tips in mind as you plan for your next international trip for a worry-free getaway.
And more importantly, have fun and enjoy your trip—no matter where in the world you choose to go.
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