Budget travellers (or budding budget travellers) love this part. They love being able to tell tales of seeing the world for just a few dollars a day. You might be able to do this in Asia but but it's really not going to happen in Europe or Australia. It's simply more expensive in these regions… period. And you'll be using converted Canadian currency to make those food and accommodation purchases. That's the slightly bad news. The good news is that your trip is still very doable with just a little advance planning.
The Budget
For your first trip, plan on spending at least $50 to $75 a day after airfare — not a luxury budget, but not an el cheapo one either, where you end up missing out on stuff because you don't have any money left. Of course, some of you will spend less – and rightly brag about it – and some of you will spend more. But especially if you're a first-timer, planning on roughly this daily amount should see you through your trip without any major disappointments or surprises. Then on your next trip you can spend more or less, as you see fit.
Something you should know about in Europe is the Value-Added Tax, or VAT. Many countries impose this tax and, in some places, it can add as much as an extra 17 percent to the price of things. Yikes! Even so, the VAT won't break your budget — you can apply for a partial refund, so hang on to your receipts.
So there's budgeting for you! Just multiply the number of days you'll be gone by 50 or 75. It's that simple. Maybe you can go away for a couple of weeks, a few months or something in between.
Money Tips
Flying in the off-season will help to reduce costs. Outdoorsy types may want to consider camping as a way to reduce food and accommodation costs Hey! Some European campgrounds are luxurious by our standards, so even if you're not generally the tough and hardy type, you might consider that option.
Do you have family you could stay with in any of the countries you'll be visiting? Plan, but don't get bent out of shape about it. Some days you'll spend less money than other days. Some days you'll spend more. The point is to go — for however long your budget lets you. Having some kind of trip is still better than no trip at all!
Carrying your Loot
Travellers need to use ingenious devices to keep their money and valuables safe while they're on the road. Back pockets and purses don't make the grade because pickpockets can easily get at your back pocket and clever thieves like to slash purses. Besides, where's your loot when you're in the shower or sleeping?
Try a money pouch that hangs around your neck, under your clothes. Another style sits around your waist, again under your clothes. Too sweaty? Other travellers have opted for an arm or leg band with a built-in pouch. Store emergency cash inside your shoes. Some travel clothing has specially designed 'secret' pockets or belts. The idea is that your valuables are always with you and you're not advertising the loot you've got.
Moola
The safest way to carry money is in traveller's cheques; unlike cash, they can be replaced if lost or stolen. Carry about 10 percent of your money in cash. Your traveller's cheques can be in Canadian dollars. Some people think you should travel with American dollar traveller's cheques, but it gets too pricey for Canadians to first buy American cheques and then convert again into another foreign currency. Why pay for two currency conversions when one will do?
For the first day of your trip bring enough foreign currency to get you from the airport to your accommodation. The rest can be in Canadian traveller's cheques you cash along the way. American Express and Thomas Cook cheques are widely accepted. However, in places like Central America , American traveller cheques are preferred, so it's best to ask the advice of your travel agent or banking professional.
It's important to try spending your last bits of a country's currency on postcards and stamps. If not, save the leftover hard currency for the next country you're going to. Don't convert the leftover foreign currency back to Canadian dollars in the next new country and then convert again into the new local currency; all those conversions cost money. Take traveller's cheques if you're going into areas where there are not a lot of ATMs (see Overseas Bank Machines, below).
Take note: exchange rates generally stink at hotels, restaurants and tourist attractions.
Overseas Bank Machines
Your ATM card will provide the best exchange rate when you need to withdraw cash. Normally you'll be charged a small service fee, withdrawn automatically from your bank account, for using an overseas ATM. You still end up paying less than you would for processing traveller's cheques, using a money exchange booth, or even a bank. Ask your bank at home for its current fees and a list of its worldwide ATM locations.
Europeans use shorter personal identification numbers (PINs) than North Americans do, so check with your bank before you leave. You don't want the hassle of finding out too late that your PIN doesn't work overseas. You'll also find that some overseas ATM keypads are numeric only. Don't worry, though, it's easy to change your PIN if need be. What's important is to find out before you're really stuck.
Using Plastic
It is a good idea to carry a credit card in case of an emergency. Depending on your credit card, you may also have some form of retail purchase insurance as well. Lost or stolen cards can usually be easily replaced. Be cautious about using your credit card for cash advances. Interest on such transactions starts immediately and may be charged at a higher rate than for purchases. Check your cardholder agreement for details.
Also, find out what your card's currency conversion rate is; it represents another expense on top of the interest.
Lastly, if you carry a monthly balance, make an advance payment – or arrange for automatic payments – before you leave to cover your payment while you're gone.
Black Markets
As exciting as the black market sounds, using it is really not a good idea. Yes, the exchange rates can be better, but you seriously need to keep your wits about you. This is not the place for newbies. Beware of counterfeit money, pickpockets, money scams or being otherwise setup. Use extreme caution if you insist on going this route.
