Don’t Let Money Mistakes Derail Your Trip
Whether you’re planning a weekend getaway or an international adventure, travel should center on excitement and discovery—not unexpected charges or a blown budget. However, without the right strategy, your dream trip can quickly become a costly financial lesson.
Money-saving expert Clark Howard has spent decades exploring the globe on a budget. His guiding principle is simple: “Buy the deal first, then figure out why you want to go there.” Still, even after snagging cheap flights and accommodations, unexpected travel costs can sneak up on any traveler.
Let’s explore the top money mistakes that travelers often make and the smart moves you can implement to keep your hard-earned cash working for you.
Mistake: Exchanging Currency at U.S. Airports
Exchanging dollars for foreign currency at airport kiosks in the U.S. typically means suffering some of the worst exchange rates available. Airport exchange booths charge wide margins and deliver poor conversion rates.
- Expert warning: “Unless you just hate money and want to throw it away, never exchange dollars at a U.S. airport,” cautions Clark Howard.
Smart move: Wait until you reach your destination country to exchange money at local banks or at-network ATMs, which often offer far better rates. Using a credit card that has no foreign transaction fee is usually the simplest and most cost-effective option, as long as it’s widely accepted.
- Use apps like XE Currency to access real-time exchange rates so you’ll know if you’re getting a fair deal.
Once you’ve secured local currency, avoid the next common spending pitfall abroad—dynamic currency conversion.
Mistake: Paying in U.S. Dollars Instead of Local Currency
When paying abroad, many merchants or ATMs prompt you to choose between paying in U.S. dollars or the local currency. While paying in dollars may appear convenient, it often comes with a hidden markup called Dynamic Currency Conversion (DCC).
- Clark Howard notes: “Banks have programmed terminals to offer U.S. dollars to American travelers… then sneak in a 7–10% markup.”
Smart move: Always opt to pay in the local currency to avoid those hidden conversion fees and receive the competitive exchange rate your bank or card provider offers.
- When prompted “Do you want to pay in your home currency?”—always decline.
Managing your spending is crucial, but how you access cash abroad can also have a big impact on your travel budget.
Mistake: Using High-Fee ATMs — Especially in Airports
ATMs are convenient but can quickly eat into your funds if you use out-of-network machines or those located in airport terminals. Some ATMs abroad may charge $8–$10 per transaction, factoring in foreign transaction and operator fees. Over a few days or weeks, those fees add up fast.
- Clark Howard cautions: “Bank ATMs have gone from being a cost-saving tool to a profit machine.”
Smart move: Use in-network ATMs partnered with your U.S. bank or credit union whenever possible. Many large banks participate in global ATM alliances (e.g., Bank of America with Barclays UK).
- Consider banks like Charles Schwab or Capital One 360, which reimburse ATM fees globally.
While having some local currency is helpful, for most purchases abroad, using a credit card is preferable—if you select the right one.
Mistake: Using a Credit Card That Charges Foreign Transaction Fees
Some U.S. credit cards charge foreign transaction fees on every purchase, usually 2–3%. For example, a $3,000 trip could carry $100 or more in unnecessary fees if you don’t choose wisely.
Smart move: Before your trip, apply for a travel card with no foreign transaction fees. Top choices as of 2025 include:
- Chase Sapphire Preferred
- Capital One Venture Rewards
- American Express Gold Card (widely accepted in urban international destinations)
- Citi Premier Card
Make sure your card’s chip and contactless features are enabled for seamless global acceptance.
After covering your spending methods and safeguarding against hidden card fees, there’s still one costly pitfall left—your phone.
Mistake: Ignoring Roaming Costs on Your Phone
International roaming and data charges can turn into a hefty phone bill—sometimes in the thousands—that you only discover after you’re home.
- Clark Howard advises: “Be intentional about your phone use overseas.” Even a short call or background app update can result in a costly surprise.
Smart move:
- Check your carrier’s roaming policies and rates before you travel.
- Disable roaming and data in your phone settings to avoid accidental charges.
- Use Wi-Fi with apps such as WhatsApp or Signal to communicate at no extra cost.
- Consider installing an eSIM (available on iPhone XS and newer, as well as many Android phones), which offers local or regional data plans for as little as $5–$15 in over 100 countries. Providers like Airalo, Nomad, and Holafly make this easy.
- For frequent travelers, Google’s Project Fi and T-Mobile’s international plans are worth a look for affordable global connectivity.
Armed with these tips for phones, cards, and cash, you’re well equipped to sidestep the most expensive financial traps travelers face.
Final Thoughts: Spend Wisely, Travel Smart
Travel is one of the few things you buy that makes you richer—if you approach it with intention. The best way to protect your travel budget is not just hunting for cheap flights or hotels, but by actively avoiding hidden fees and costly mistakes along the way.
Quick Recap: Money Mistakes to Avoid on Your Trip
- ❌ Exchanging currency at U.S. airports
- ❌ Paying in U.S. dollars instead of local currency
- ❌ Using high-fee ATMs abroad
- ❌ Using credit cards that charge foreign transaction fees
- ❌ Racking up international roaming charges
With a little pre-trip planning, the right financial tools, and awareness of common travel money traps, you can save hundreds—or even thousands—on every adventure.
Ready to start your trip without financial surprises? Bookmark this guide and share it with your travel buddy, so you can both explore the world with peace of mind and more money in your pocket!