How should you pay for things on your trip?

It's very important to think about how you are going to pay for day to day expenses when you are traveling, especially overseas. There are many different options from travelers checks to credit cards or cash. Below are some helpful tips you should keep in mind when planning your trip.

1. Call your bank (for both debit and credit cards) to let them know you are traveling abroad- this is important for 2 reasons. One, your bank will ask the exact cities and times of your trip so if they see any activity outside of those specifications they can put a hold on your account immediately. And two, not only will they keep a closer eye on your account, but if you don't make your bank aware of your travels and they do see suspicious activity, they may put a hold on your account that you don't want!

2. My preferred method of payment overseas is credit card for anything over $50, and always keeping a good amount of small bills or coins for cab rides, quick snacks and souvenirs.

3. As for travelers checks, I don't see any reason to use them. Enough said.

4. I've gone back and forth when deciding if I should exchange cash for the local currency before my trip or when I arrive, and I've found there's no problem using the airport ATM as soon as I arrive. And it just means one less item on my "to do" list before I leave!

5. Very important!! When taking over $100 out of a debit machine, make sure to ask for an odd denomination like 105 or 115. If you specify an even 100, you will literally get a 100 bill and it will be hard to find someone to break it. I learned this the first trip I ever took to Europe, but seemed to forget the simple rule when arriving in Vienna. When we arrived I went straight to the ATM machine and took out £200, and literally received 2 £100 bills. One of our first stops in Vienna was to see the Schloss Schonbrunn. At the top of the hill sits a fantastic monument with the best views of the city. We climbed to the top of the hill only to be turned down from climbing to the top of the monument because they wouldn't break my £100. (I think the fee was £2 per person). All that work...just to see the second best view in Vienna.

For exchange rates check out this user friendly site: http://www.xe.com/