Losing money abroad is one of those things that can turn a great holiday into a stressful one very quickly. Whether it is a pickpocket in a busy market, a dodgy ATM or simply misplacing your wallet, the consequences can range from mildly inconvenient to genuinely problematic.
The good news is that a little preparation goes a long way. Most money-related problems on holiday are avoidable, and none of the steps below requires much effort.
Split Your Money Up
This is one of the simplest and most effective things you can do. Never keep all your cash in one place. If your wallet is stolen or lost, you want to have some backup funds available rather than being left with nothing.
A sensible approach is to carry what you need for the day in your wallet or a small accessible pocket, and keep the rest stored securely elsewhere, such as in a hotel safe, a hidden money belt or a separate compartment in your bag. Some travellers split cash across multiple locations, keeping some in their bag, some in a money belt, and a small amount in a pocket.
Use a Hotel Safe
Most hotels and guesthouses offer some form of in-room safe or a secure storage option at reception. Use it. Keeping the bulk of your cash, your passport and any spare cards locked away while you are out for the day significantly reduces the risk of loss or theft.
If you are staying somewhere without a safe, a small padlock on your bag can add a layer of security, particularly in shared accommodation.
Be Careful at ATMs
ATMs are among the more common places where travellers run into problems, from card skimming devices to being distracted by someone nearby.
A few habits that help:
Use ATMs inside banks or shopping centres rather than standalone machines on the street
Check the card slot and keypad for anything that looks loose or out of place before inserting your card
Cover the keypad with your other hand when entering your PIN
Be aware of anyone standing unusually close to you
If an ATM swallows your card or behaves strangely, contact your bank immediately
It is also worth withdrawing what you need rather than visiting ATMs repeatedly, which reduces how often you handle cash in public.
Keep Cards and Cash Separate
If your wallet is stolen and it contains both your cash and all your cards, you are in a difficult position. Keeping at least one card separate from your main wallet means you always have a backup.
Many travellers keep a debit card in their wallet for everyday use and a credit card tucked away in the hotel safe or a separate part of their luggage, only brought out when needed. This way, losing one does not mean losing access to everything.
Be Aware of Your Surroundings
Pickpockets tend to operate in busy, distracting environments. Tourist hotspots, markets, public transport, crowded restaurants and busy streets are all places where it pays to be a little more alert.
Some practical things to keep in mind:
Bags worn across the body are harder to snatch than shoulder bags or backpacks
Keep bags closed and in front of you in crowded areas
Avoid getting your phone or wallet out unnecessarily in busy places
Be wary of unexpected distractions or someone who bumps into you, as these can be deliberate tactics
None of this means being paranoid. Most destinations are perfectly safe for the vast majority of travellers. It just means being sensibly aware rather than completely oblivious.
Watch Out for Dynamic Currency Conversion
This one is easy to overlook but can cost you real money. When paying by card at a shop, restaurant or ATM abroad, you may be asked whether you want to pay in the local currency or in pounds. Always choose the local currency.
Paying in pounds via Dynamic Currency Conversion may seem convenient, but the exchange rate used is almost always significantly worse than the one your bank would use. It is an easy trap to fall into when you are tired or in a rush.
Tell Your Bank Before You Travel
A surprising number of travellers have their cards blocked abroad because their banks flag overseas transactions as suspicious. A quick call or notification through your banking app before you travel tells your bank to expect foreign transactions and reduces the chance of your card being frozen at an inconvenient moment.
While you have the app open, it is also worth noting down your bank's emergency number so you have it to hand if your card is lost or stolen. Most banks have a 24-hour line for exactly this situation.
Carry a Small Emergency Fund
Keeping a small amount of cash set aside purely for emergencies is a habit worth getting into. This could be the equivalent of £50 to £100 tucked into a hidden pocket or a separate compartment of your luggage that you simply do not touch unless something goes wrong.
If your wallet is lost or stolen and your card is blocked while you wait for a replacement, this emergency fund can be the difference between a manageable situation and a very stressful one.
Be Cautious About Where You Exchange Money
Street money changers and unofficial exchange booths may offer attractive rates, but they are also one of the most common ways travellers lose money abroad. Counterfeit notes, short-changing, and hidden fees are all risks with unregulated sellers.
Stick to banks, licensed bureaux de change and reputable providers. For more on this, our post on how to avoid currency exchange scams while travelling covers the most common tactics to watch out for.
Order Your Travel Money Before You Go
One of the easiest ways to reduce risk is to arrive at your destination with local currency already in your pocket, rather than scrambling for an ATM or exchange booth the moment you land. Airport exchange rates are typically among the worst you will find, and arriving tired after a long flight is not the ideal time to be making financial decisions.
At TravelCash, we offer great exchange rates with 0% commission, and collecting your travel money in advance takes just a few minutes. Find your nearest TravelCash bureau and get sorted before you fly.
