Ever since COVID-19 restrictions began to fade away, travel has boomed. In fact, as of the first nine months of 2024, global travel had reached 98% of pre-pandemic levels, according to UN Tourism. If you’re in the process of planning a trip overseas, it can be easy to get excited and focus on your destination instead of any financial concerns. But there are definitely some must-dos you should put in place before you go on a trip abroad.
Here’s a look at the most important financial steps to take before traveling overseas. Also here is the best $200 you can spend before traveling abroad.
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Check Your Bank Account for Fees and Accessibility
One of the most important steps to take before you travel internationally is to make sure your bank won’t be raking you over the coals with fees. Some traditional banks, for example, charge exorbitant ATM fees, even at their own terminals. What you’ll want to look for is a bank account that either charges no international ATM fees or that rebates fees on a monthly basis. Schwab, for example, offers unlimited ATM fee rebates monthly at any terminal where its debit card is accepted.
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Notify Your Bank(s)
As internet fraud is on the rise, banks use computer algorithms to help protect against unauthorized activity. If you’ve spent your entire life in the U.S. and then suddenly are spending $200 on a bottle of wine in Paris, red flags will go off and your transaction may be blocked. To avoid any embarrassment or inconvenience (and as Bank of America suggests), it’s always best to inform your financial institutions if you will be traveling anywhere out of your ordinary pattern.
Make a Travel Budget
It’s certainly not the most exciting part of planning an overseas trip, but a critical step is to make a travel budget. While you likely want to feel free to do what you want when you’re on your vacation — after all, that is the point of taking time off in the first place — this very feeling can easily lead to overspending. And the worst financial mistake you can make is to come home from a vacation saddled with a pile of debt.
To avoid this problem, draft a realistic budget long before you even make arrangements for your trip. In addition to traditional categories like lodging, transportation, meals and so on, be sure to include a contingency fund for “extras.” Whether it’s gifts or a special meal or a “once-in-a-lifetime” opportunity for a side trip somewhere, there always seem to be cost overruns during a vacation. If you plan ahead for these, however, you’ll be in good financial shape and have the freedom that most travelers want.
Consider Travel Insurance
Something that doesn’t cross the mind of many travelers is insurance. But the unfortunate reality is that most American health insurance plans don’t cover incidents that occur overseas. Some may offer limited emergency coverage, but even in those situations, you may very well have to pay for the cost of your treatment out-of-pocket and then wait for reimbursement from your insurance company.
This is why you might want to look into buying a dedicated travel insurance policy for your trip overseas. These types of policies are generally short-term in nature and provide a variety of healthcare coverages, allowing you to pick the right one for your needs. For example, some travelers might want a simple, low-cost policy, while others might want coverage for pre-existing conditions or for injuries from extreme sports.
Find Someone To Manage Things at Home
As much as you might plan ahead, it’s hard to prepare for every possible financial contingency while you are overseas. It’s usually a good idea to ask a good friend or relative to handle your affairs at home while you’re off traveling. For example, you can have someone pick up your mail and notify you if there are any pressing issues, such as a jury summons or an overdue bill.
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This article originally appeared on GOBankingRates.com: 5 Financial Steps To Take Before You Travel Overseas
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