Traveling abroad is an exciting venture that requires a lot of thought and preparation. For people who are traveling abroad for the first time, planning for a trip of this size can be a bit intimidating. From nailing down travel plans to protecting finances on the road, there are many important things to remember before traveling abroad. For anyone looking to make his or her first trip abroad a positive one, here are some financial tips.

Limit the Amount of Cash on Hand
One of the biggest fears of travelers is that all of their cash will be stolen or go missing. To help safeguard your wallet, limit the amount of cash you carry on hand and always have a backup, such as a major credit card or traveler's check, in case of emergency. Additionally, if you must carry cash, don't keep it all in one place. Spread it out in different pockets, and never allow anyone to have easy access to your money or wallet when traveling abroad.

Use Traveler's Checks
An excellent alternative to carrying cash while traveling abroad is to use traveler's checks. Traveler's checks are accepted in many countries, and are much safer to carry than cash. Unlike traveler's checks, cash cannot be replaced if it is lost or stolen. Additionally, traveler's checks have two separate lines for signatures. One line you sign upon receipt of the check, and the other line is to be signed when you purchase an item with the traveler's check. The cashier is to verify that the signatures match perfectly and confirm your identification prior to cashing them, thus making it almost impossible for anyone else to use your traveler's checks.

Keep Legal Documents and Important Phone Numbers Safe
Be sure to keep a file containing all of your pertinent information. Many travelers lock their legal documents in their hotel safes and keep copies on their person while sightseeing. When traveling abroad, you will need to have your passport, photo ID and birth certificate readily available.

Additionally, keep a note handy of any important phone numbers, such as the contact information for your credit card companies and the domestic embassy abroad. It is important to have this information readily available at all times, in case of an emergency.

Verify that Your Medical Insurance is Accepted Abroad
Medical insurance is another important, though often overlooked, aspect of traveling abroad. While there are some health insurance carriers that are accepted overseas, verify all the details with your insurance carrier to be sure that your health is properly covered abroad. Often, the policy will cover you at a decreased percentage and a higher patient out-of-pocket cost. Prior to traveling, it is best to double-check all relevant details with your health insurance carrier.

Notify Your Credit Card Company Prior to Your Trip
Before you depart for your trip, it would be a good idea to notify your credit card company that you will be traveling abroad. Some credit card companies will become suspicious if they see international charges show up on your statement. To be safe, let your credit card company know about the trip ahead of time and provide it with important details, such as your hotel information and the length of your trip, so that your credit card provider can contact you if the need arises.

The Bottom Line
Other than your physical safety, there is nothing as important as your financial security while traveling abroad. Traveling overseas for the first time should be an unforgettable and enjoyable adventure. Safeguard your wallet and ensure that financial mishaps don't ruin this once-in-a-lifetime experience for you.

Related Articles
  1. Credit & Loans

    10 Reasons To Use Your Credit Card

    There are several benefits to paying with credit instead of debit, if you use a credit card responsibly.
  2. Credit & Loans

    5 Extreme Ways To Raise Your Credit Score

    Desperate to rebuild your credit score because you can’t obtain a loan with a decent interest rate? Here are some extreme options to try.
  3. Investing

    How To Make Sure Your Healthcare Costs Do Not Ruin Your Retirement

    The best proactive plan of action for a stable retirement is to understand medical costs, plan ahead, invest properly, and consider supplemental insurance.
  4. Personal Finance

    The Top 5 Personal Finance Experts to Follow in 2016

    Here is a look at five money and investing experts who can help you reach your financial goals for 2016.
  5. Insurance

    Jan. 31 is Sunday: Almost No Time to Duck Obamacare Penalty

    If you don't have health insurance, act NOW or you could owe penalties on your 2016 taxes, in addition to this year's.
  6. Insurance

    How High-Deductible Health Plans Work

    It will give you access to a Health Savings Account, but are the limitations worth the benefits?
  7. Economics

    What is a Trade Credit?

    Trade credit means that a customer purchases goods from a seller who allows the purchaser to pay for those goods at a later time.
  8. Insurance

    3 Reasons To Get High-Premium Health Insurance

    Health insurance is expensive, which is why many people opt for the lowest-premium plan. But that may not always be the cheapest.
  9. Insurance

    Is Catastrophic Health Insurance Right for You?

    Catastrophic health plans protect you from high medical costs if you get seriously hurt or injured. But when is catastrophic the best option for you?
  10. Investing

    Amazon Financing Now in the U.K.: Is America Next?

    Amazon has unveiled a great credit product in the U.K. Will America be the next country to have access to this financing option?
RELATED FAQS
  1. How can you pay your Walmart credit card?

    Holders of Walmart credit cards can make payments on their balances due by mail, online or at Walmart and Sam's Club stores. ... Read Full Answer >>
  2. Does dental insurance cover implants?

    Dental implants have become a widely used procedure in dentistry. Despite their popularity, however, they tend to not be ... Read Full Answer >>
  3. Does dental insurance cover dentures?

    Most full dental insurance policies include some restorative coverage, usually meaning that up to 50% of the cost of dentures ... Read Full Answer >>
  4. Can CareCredit be used for family members?

    CareCredit has become a widely used option when it comes to paying for medical procedures, primarily procedures not typically ... Read Full Answer >>
  5. Can a Flexible Spending Account (FSA) be used for dental?

    Flexible Spending Accounts (FSAs) can be used to pay for dental expenses including deductibles and co-payments with pretax ... Read Full Answer >>
  6. Does dental insurance cover braces?

    Most regular dental plans cover little to none of the costs of braces. The primary focus of regular dental plans is prevention ... Read Full Answer >>
Trading Center