Money Mistakes to Avoid When Travelling

Travel has a way of making us feel wonderfully free. New places, new food, new experiences — it is all part of the magic. Although nothing puts a dent in that feeling faster than a financial hiccup: an unexpected fee, a frozen bank card, or the slow realisation you have blown half your spending money in the first four days. The good news is most travel money mishaps are preventable with a little planning and a few insider habits.

Here are the most common mistakes travellers make, along with simple ways to sidestep them.

Relying on Just One Payment Method

Many travellers still head overseas with a single debit card and hope for the best. That strategy works until it doesn’t. Cards get declined. ATMs run out of cash. Banks freeze accounts after detecting what looks like “suspicious activity” in Rome or Vancouver.

Carrying at least two different cards from two different banks, provides a vital safety net. A backup doesn’t need to live in your wallet. It can stay tucked into a separate pocket of your luggage. Having a little local cash on arrival also helps, especially in countries where small vendors and taxis still prefer cash.

Withdrawing Cash Too Often

ATM fees vary wildly across countries. Some are tiny, others can be eye-watering. Frequent small withdrawals mean repeated fixed fees which add up.

A smarter approach is to withdraw slightly larger amounts, less often, and from bank-branded ATMs rather than generic convenience-store machines. Checking your own bank’s overseas fee structure before departure can help you decide which card to use for cash and which one to reserve for purchases.

Forgetting to Tell Your Bank You’re Travelling

Banks and credit card companies monitor spending patterns closely. A sudden purchase in another hemisphere can look like fraud, especially if you do not travel often. Although many banks no longer require formal travel notifications, not all systems are equal. Some still expect it, particularly older banking platforms.

A quick call or online notification is usually enough to keep your card active. It also gives you an opportunity to ask about fees, daily limits, and any special arrangements for emergencies.

Paying Foreign Transaction Fees on Every Purchase

Those small 1–3 percent charges appearing on your statement after every overseas purchase feel harmless at first. However, they accumulate into a sizeable amount by the time your trip ends.

Some cards are far more travel-friendly than others. Choosing a card with no foreign transaction fees can save hundreds on a long-haul trip. Even if you only travel once or twice a year, the difference can be substantial. Many travellers keep one “travel card” purely for overseas use and their usual card for home.

Choosing the Wrong Currency When Paying by Card

Merchants often ask whether you would like to pay in your home currency. It sounds logical, even comfortable. Unfortunately, it is almost always more expensive. The merchant’s conversion rate is typically worse than the rate your bank would apply.

Selecting the local currency gives you a far better exchange rate in most situations. It also gives you a more accurate picture of local pricing, which helps you stay on budget.

Ignoring Airline and Airport Costs

Trips often come with unplanned extras. Many travellers underestimate how many purchases they make between home and the hotel: food at the airport, bottled water after security, an Uber to the terminal, or a bag they suddenly realise is overweight.

Building a small buffer into your “departure day budget” helps avoid stress. Weighing bags the night before and double-checking what your fare actually includes can prevent costly surprises. Some discounted fares no longer include a checked bag, a meal, or seat selection, which means the “cheap fare” sometimes isn’t cheap at all.

Over-Scheduling the Itinerary

Packing too many plans into the first few days can lead to overspending, especially when you are tired, jet-lagged, or hungry. Busy days often end in impulsive meals, unnecessary taxis, and rushed decisions.

A gentle arrival day and a balanced first week help your spending stabilise. Many travellers also assign rough budgets per day or per activity, keeping the big splurges for occasions that genuinely matter rather than moments of fatigue.

Forgetting About Mobile Roaming Costs

International mobile roaming continues to catch people off guard. One afternoon of direction-checking or photo uploading can result in significant charges.

Checking your provider’s roaming package before departure is essential. Some offer affordable daily rates, while others remain expensive. Airline Wi-Fi, airport Wi-Fi, and hotel networks can supplement your data, although each comes with its own quirks. Buying a local SIM card or using an eSIM app is usually cheaper and gives you more control over usage.

Skipping Travel Insurance

Travel insurance feels like an optional extra until you need it. Medical care overseas, lost baggage, flight disruptions, and stolen items can quickly turn into thousands of dollars without coverage.

Reading the policy closely matters, especially where pre-existing conditions, age limits, or trip-cancellation rules are involved. Many travellers also forget policies purchased through airlines or banks may not offer the same level of cover as a standalone policy. Choosing the right product for your itinerary creates peace of mind and financial protection.

Assuming Everything Must Be Booked in Advance

Pre-booking makes sense for popular attractions, limited-ticket museums, and long-haul trains. It does not make sense for every meal, every tour, and every day trip.

Overbooking can lock you into plans you no longer feel like doing, especially if the weather shifts or you discover a better option once you arrive. A balance of pre-booked essentials and flexible days helps you avoid cancellation fees, rushed decisions, and unnecessary spending.

Travel becomes more enjoyable when financial stress isn’t tagging along. A few smart decisions — a backup card, a fee-free payment option, a realistic itinerary, and travel insurance — can prevent the most common money mistakes.