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When traveling anywhere, you need to be prepared. Practicing Smart Travel means making a checklist of everything you need to ensure you don’t miss anything—phone and laptop chargers, important documents, credit cards, towels, blankets, or anything else that’s essential for your trip. One crucial aspect of Smart Travel, especially when going abroad, is having local currency on hand. Some people overlook this, favoring credit cards over physical cash. But there are reasons why doing this isn’t very advisable.
In an online platform, a user asks about the relevance of bringing local cash when traveling, and here are some of the responses they got.
1. You Never Know
One user said they like to have a small amount of local cash with them because you never know when you might need it. According to them, you could encounter a cash-only place you want to buy from, or your credit card company will see an international transaction and lock the card. “Last time I traveled internationally, I brought some euros in cash with me,” they said. “I didn’t use a single of those euros, but I still don’t at all regret bringing them.”
2. Helps With Budget
A participant in the discussion said they carry local currency because it helps them budget for the trip. If it’s just a card swipe every time, they will spend more than they planned at an unknown exchange rate. “But if I know I used $500 and I have half left, and I’m only a quarter through my trip, I’m going to change my habits to stick to my budget.” 22 Budgeting Tips That Actually Work
3. Banks Freaking Out
One user said they don’t take local cash when traveling internationally, which sometimes affects them. They usually get into the country late at night, and the banks are closed, so now they have to find some sketchy all-night ATM just to pay the driver. Also, your bank could freak out and restrict your account, thinking it’s a fraudulent transaction. They might still freak out and block the transaction even when you inform them that you’re traveling and tell them your destination. So, it’s best to have some extra local cash on hand, just in case.
4. Better Exchange Rates
According to one user, one reason to exchange cash before leaving is that there are often better exchange rates at home than abroad. Also, many credit cards have foreign transaction fees, so bringing cash rather than just cards is always a good deal.
5. ATM Problems
“Clearly, you’ve never had ATM problems in a foreign country,” one user said, responding to the poster. “Nor have you been in a country that has widespread ATM/banking issues. You also have no idea how easy it is for an American bank to get any foreign currency with little notice.”
6. Incidentals
It’s worth having a little bit of money for incidentals, a user said. Things like wanting to buy a coffee or snack upon arrival, tips for luggage assistance, and transportation when first arriving. You can do all these things with a bit of money before finding an ATM or exchange and getting a local phone SIM. Another user agreed, saying, “That’s about the same for me. $100- $150 will get me through at least day 1, a quick bite, and a train ticket out of the airport.”
7. Depends on the Country
For this user, it depends on the country you’re going to. Japan, for example, is a very cash-heavy country. Many places don’t do credit cards, and ATMs charge exorbitant foreign exchange fees. “When I went to spend some months there,” the user said, “I brought some Yen with me. It was cheaper and easier overall.”
8. Comfort
This user said he always gets local currency before he travels because he can do it at his leisure in a place where he is comfortable. This ensures that when he lands, he can just worry about getting his luggage, finding ground transportation, and getting to his hotel. There is no need to try finding an ATM. “What happens if I go to the ATM and for some reason have trouble making a withdrawal? Or if I didn’t see an ATM and my credit card wasn’t being accepted?” he said.
9. Delays
A user said the unfortunate scenario happened to her husband once when they were in Mexico. ATM denied a transaction, so he had to find a local bank and stand in a long line for at least 20 minutes to get some money. Given it was almost the end of bank hours, he had to go to the closest bank, where the exchange rate and fees sucked.
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10. No Atms
“Certain places we go, like parts of Mexico, have no ATMs,” said one user. “Some of the ATMs they have are not trustworthy (allegedly). When we went to Cozumel, almost no one took cards. We had to cut one of our excursions short because we ran out of local currency. So the idea of being screwed without local currency is strong.”
