Making the right money moves abroad starts with a few key decisions. Whether you’re strolling through the Luxembourg Garden in Paris, bargaining in Istanbul’s Grand Bazaar or fishing for dorado in Cabo San Lucas, vacations are often filled with precious memories. But even the most memorable international trips benefit from some financial forethought, including how much local currency to bring.
“Planning and budgeting as far ahead as possible for international travel can help mitigate the stresses that can often come as a result of it,” advised Anthony Herceg, Head of Retail and Wealth FX, Precious Metals and Fixed Income Distribution at TD Securities, when referencing the bank’s recent survey on global travel habits. “Cash is still important, especially for smaller transactions and where cards are not accepted.” He said carrying the right mix of cash and cards is key to avoiding “unexpected inconveniences at a point-of-sale.”
Currency exchange rates can also influence where travelers decide to go. In TD Bank’s study of 1,000 American travelers, 75% of the respondents said exchange rates factored into their decisions. This is especially true among Gen Z travelers as 86% cited that as a key consideration in their travel plans.
For example, Japan’s attractive JPY/USD exchange rate is just one reason the country ranks highly as a top pick for American tourists.
Travelers today continue to be price conscious
Price consciousness is very real for many of today’s travelers — and for good reason. The Federal Reserve recently signaled expectations of tepid economic growth in 2025, and travelers are taking note. Despite a surge in travel compared to pandemic-era levels, many travelers remain focused on keeping their spending in check. TD Bank’s travel survey found that 88% of respondents had to save for their recent trip, with 60% saving for up to six months.
But being cost conscious doesn’t mean splurging is off the table. Many travelers (82%) prefer shopping for luxury goods when conversion rates are favorable. Clothes (60%) and food products (58%) top the spending list, followed by bags and jewelry (47%), wine and spirits (36%) and rare or antique items (22%).
Meanwhile, with vacation rental platforms reshaping the hospitality industry, travelers are less willing to pay a premium for accommodations. So, it’s no surprise that 73% of those surveyed are opting for mid-range lodging over high-end hotels.
Why cash is still king and how much to carry
There’s a general sense that the world of payments has gone fully cashless, but that’s not entirely true. While many restaurants and tourist attractions require credit cards or digital wallets, establishments off the beaten path often take cash only.
In Germany, for example, “Cash Only” signs are still common. The country has one of the highest rates of cash usage in the European Union, driven in part by privacy concerns and a cultural preference for disciplined spending.
Additionally, many travelers want to leave cash tips, especially in countries where tourism plays a major role in the economy.
These are just a few reasons to anticipate expenses and have enough foreign currency on hand.
Deciding on the amount of cash to bring doesn’t have to be a mind-bending exercise. Depending on your itinerary, you might invest in high-end experiences or stick to a modest budget. Either way, a good rule of thumb is to carry the foreign currency equivalent of $50 to $100 USD per person for each day of your stay.
Say au revoir to unnecessary fees
Exchanging currency in advance gives travelers the chance to shop around for the best exchange rates, instead of settling for less favorable ones at airports or foreign ATMs. Withdrawing cash abroad can come with a stack of hefty fees, including foreign transaction charges, out-of-network fees, currency conversion costs and ATM surcharges.
The good news? Getting foreign currency before your trip is easier than ever. Many TD Bank locations offer same-day currency exchange. You can also order currency online and pickup within 2-3 business days[1] at the TD Bank of your choice.
Whether you’re traveling or need to send or receive money internationally, TD Bank has you covered with competitive exchange rates. Exchange more than 55 foreign currencies online or in person at any TD Bank location before your next trip. Learn more about TD Bank’s foreign currency services.
This article is for general informational purposes only. It is not intended to provide specific financial, investment, tax, legal, accounting, or other advice and should not be acted or relied upon without the advice of a professional advisor. A professional advisor will recommend action based on your personal circumstances and the most recent information available.
[1] Some currencies may take longer than 2-3 days.
Diallo Hall is a freelance writer for The Business Journals Content Studio.
