Expert tips on smart spending while abroad

Scott Hannah and Stacy Yanchuk Oleksy weigh in on the cash-flow questions that weigh on you when you travel.

Q How do you best budget for a big trip?

Nothing erases the elation of an epic holiday more than coming home to even more epic bills. Sure, vacations are a time to splurge, but have a spending plan. Start with a SMART goal. An acronym for “specific, measurable, achievable, relevant and time-bound,” SMART is simple. Fill in the blanks: I want to go to (insert location) in (insert time frame); the cost of my vacation will be (insert dollar amount) and I’ll need to put aside (insert dollar amount) (insert how often) in order to achieve this. If the numbers don’t add up, opt for a trip that’s less expensive or extend the time frame. And remember to factor in oft-forgotten costs, such as an international phone plan, travel insurance, a house sitter, pet care, transportation to and from the airport, parking and luggage fees.

Q Do people still carry traveller’s cheques? When are they good to use?

Most people don’t use or recommend traveller’s cheques anymore, and depending on where you’re going, you may not be able to cash them. More convenient options include a credit card (even better if you use one that doesn’t charge foreign transaction fees), a prepaid credit card in the currency of the country in which you’re travelling or a debit card for withdrawing cash in the local currency (be aware that fees may apply).