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Whether it's an exchange program, a gap year or a school excursion, going overseas is an exciting adventure when you're a teenager. But it can also be overwhelming to try and work out everything you need before you go. For your parents, there's also a level of concern around safety and communication.
So to help keep things simple, we've rounded up some of the top tips on travel money, including the different money options available and how to keep it safe. There's also a checklist that you can use to help organise documents, details and other essentials before the trip.
Depending on the destination that you're travelling to, you could use any or all of these different ways to pay:
Cash is still king in most places around the world, so having some notes and coins in the currency of where you're going will make it easy to pay for anything from taxis to meals to souvenirs.
Generally, it's a good idea to have at least a small amount of foreign currency before you go overseas so that you can pay for what you need when you land. Cash can also help you save on the ATM fees and foreign transaction fees charged by many cards.
These prepaid debit cards let you load and spend money in a range of different currencies, which can make it easier to keep track of how much you have left to spend. In terms of security, these cards are not linked to a bank account and provide zero liability against fraud. Some travel cards also come with a second, backup card in case anything happens to the main one.
If you have a debit card linked to your teen, student or everyday bank account, you can take this with you overseas. Regular debit cards can be used anywhere Mastercard or Visa is accepted and offer protection against fraud.
But make sure you find out what fees will apply, as many debit cards will charge a currency conversion fee and overseas ATM transaction fees that can quickly eat into your balance. It's also a good idea to let your bank know where the card will be used, so they don't block or cancel it when they see unfamiliar transactions being made.
While Australian credit cards are accepted around the world, you have to be at least 18 years old to apply for one. You also have to meet other eligibility requirements that relate to your income and credit history, which could be difficult if you're still young.
If you want your teenager to have access to a credit card when they're overseas, another option is to add them as a secondary cardholder on your account. You can usually request a secondary or additional card for anyone over the age of 16. If the request is approved, they'll get a card linked to your account, which they can take with them overseas. Just keep in mind that you'll be responsible for all the transactions made on your account.
Even if you think you'll mainly use cash or a single travel card when you're overseas, it's important to have other options available just in case something happens. For example, if you lose some cash but you also have a card, you'll be able to use it for payments or find an ATM to withdraw more money.
The mix of cash and cards you take is up to you, but generally, it's good to have at least a small amount of cash and one or two cards that you can use for different types of payments.
Regular debit cards and credit cards usually charge a foreign transaction fee worth around 1-3% of your transaction each time they're used overseas. Many cards also charge foreign ATM fees of around $3-$5. Some cards also charge an overseas EFTPOS fee of around 3% of your transaction.
These costs can quickly add up if you're regularly using the card overseas. As an example, if you use a debit card to take out $500 cash, it could cost you up to $20 in fees (a 3% foreign transaction fee and a $5 ATM fee). You'll also usually be charged a fee by the overseas ATM company or operator every time you withdraw cash (or even check your balance), adding even more to the cost.
The first step is to find out what fees your bank charges. Then, you can reduce or avoid these fees by:
Having all your foreign currency and cards in a wallet makes you an easy target for pickpockets and scammers. It also means you'll have no backup if you lose your wallet. Instead, consider keeping some of your travel money in a separate place.
For example, you could lock up most of your cash in a hotel safe or the locked part of your luggage and only take what you need for the day. Or, you could keep most of your cash and a backup card in a money belt under your clothes and just have a small amount of money in a wallet that's easily accessible whenever you want to make a payment.
Six ways to carry your currency while travelling
Here are the essential tasks to get done before you or your teen heads overseas:
There's a lot to consider when you're travelling as a teen. Planning your travel money and other essentials ahead of time means you can stay safe and enjoy exploring new places around the world.
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