Money Matters While Traveling A Pack Light Global guide to spending wisely abroad

One of the most common questions we receive at Pack Light Global is about money: how much to bring, when to use cash, and how to avoid unnecessary fees while traveling internationally,pay with credit or cash. Thoughtful money management can make a meaningful difference in how relaxed and confident you feel on the ground—especially when navigating unfamiliar currencies and payment systems. Below is our practical, experience-based guidance, shaped by years of traveling alongside our clients across Europe, Africa, Asia, and the Americas.

The Golden Rules We Share with Every Traveler

• Always use the local currency. Paying in U.S. dollars is rarely in a traveler’s interest. When given the option—local currency or USD—always choose the local currency.

  • The only limited exception is when using a credit or debit card, in which case your bank may offer a more favorable exchange rate than the merchant.

• Be aware of the exchange rate before making a purchase. We strongly recommend using a reliable currency conversion app such as XE. Check it before making purchases—particularly in Europe, where the U.S. dollar is often worth less than the euro.

• Use a mix of payment methods. Cards for most purchases, cash for tips, and markets.

• Prioritize security. Apple Pay or Google Wallet, with biometric security enabled, adds an extra layer of protection and reduces the need to pull out physical cards.

Identification, Cards & Hotel Holds (Important to Know)

In many countries, routine practices around payments can surprise travelers if they’re not prepared.

• You may be asked to show identification—such as a passport or government-issued ID—when using a credit or debit card.

• Keep a secure copy of your passport on your phone, and consider carrying a driver’s license as secondary ID.

• A passport is always required to exchange currency.

Many hotels also place a daily incidental hold on your credit card at check-in:

• Typically $50–$100 USD (or euros) per night

• These funds are not available during your stay

• Holds are usually released after you return home

This is not a charge, but it can temporarily reduce your available credit—especially on longer stays.

Ways to Access Money While Traveling

(Listed in the order we typically encourage)

Using Credit & Debit Cards for Purchases

This is our preferred method for most day-to-day spending.

• Strong exchange rates

• Easy expense tracking

• Less need to carry large amounts of cash

What to know before you go

• Visa and Mastercard are the most widely accepted globally

• Discover is rarely accepted internationally

• American Express is often not accepted or may incur higher fees than Visa or Mastercard

• Confirm whether your cards charge foreign transaction fees

• Be aware that some countries or regions have limited card acceptance

Always download your bank and credit card apps before traveling. If a card is misplaced:

• Freeze the card immediately using the app

• Do not cancel a misplaced card right away unless you are certain it’s stolen

• Cards are often recovered, and immediate cancellation can create more disruption than protection

• You can often still use a digital wallet to check out of a hotel or make essential purchases, then re-freeze the card

Using ATMs Abroad

Still one of the most reliable ways to access local currency.

Why we like this method

• Access to local currency

• Generally, competitive exchange rates

• Convenient in most destinations

What to watch for

• ATM fees (local and home bank)

• In parts of Europe, ATM fees and conversion rates can be similar to those of cash-exchange counters

• Always decline dynamic currency conversion and choose the local currency

Our approach: Withdraw a larger lump sum early in the trip, then rely primarily on cards for daily spending.

Using Digital Wallets

Apple Pay and Google Wallet add flexibility and security.

• Reduces the exposure of physical cards

• Useful if a card is temporarily frozen

• Protected by biometric security

Carrying Cash (How Much to Plan For)

Cash is always necessary—it’s simply a matter of how much and when. The ranges below are per person, per day, and are intentionally broad to account for shopping, tipping, transportation, and market visits.

It’s also important to note that you will likely need more cash at the beginning and end of a trip, and on market days, particularly in destinations outside Europe.

Europe

• Typical range: €40–€80 per person, per day

• Cash needs are generally lower, but increase in cafés, taxis, small shops, and local markets

Southeast Asia

• Typical range: $30–$75 USD equivalent per person, per day

• Market days, street food, massages, and local transport can quickly increase cash needs

East & South Asia

• Typical range: $30–$75 USD equivalent per person, per day

• Cash usage is higher outside major cities and for informal purchases

Africa

• Typical range: $40–$100 USD equivalent per person, per day

• Tipping, guides, markets, and smaller vendors often require cash

• Expect higher needs at the start and end of the trip

Central & South America

• Typical range: $30–$80 USD equivalent per person, per day

• Transportation, markets, and small eateries often require cash

These are planning ranges, not strict rules. Some days you may spend far less; others—especially market or shopping days—you may need more.

Methods We Typically Do Not Recommend

Getting Currency from Your Bank Before Leaving

While it may feel reassuring, we generally advise against it due to:

• Less favorable exchange rates

• Service fees

• The likelihood of returning home with unused currency

Traveling with U.S. Dollars to Exchange Abroad

Also, usually discouraged.

• Airport exchanges charge high fees

• Rates are unpredictable

• Time-consuming

• Primarily useful only if you do not have access to a debit card

The Pack Light Global Approach

Our guidance remains consistent across destinations:

• Cards first, cash as a supplement

• Digital wallets, whenever possible

• Local currency always

• Plan for hotel holds, identification requirements, and higher-cash days

• Keep access to your money secure and flexible

When money logistics are clear, travel feels lighter. And that clarity allows you to stay focused on what truly matters—being present, curious, and open to the world around you.

Travel Fearless. Pack Light.