When my siblings and I were growing up, Kansas and vacation were synonymous; Kansas was also associated with summer, Thanksgiving, and the swimming pool. Kansas was magic. We would pile into the mini-van with GameBoys, McDonald’s hashbrowns in hand, and a spirit ready for the 8 hours of sunflowers and prairie dogs on Interstate 70. The pool behind my grandpa’s house was the prize at the end of the journey.
In the excitement, my sisters and I were pleasantly aloof to all the preparation that went into a seemingly simple trip. My parents developed a well-refined itinerary over the many pilgrimages across the Great Plains, so that to us it was simply fun. Whether you’re hitting the road to the family farm, or a multi-layover journey across the world, a little planning will help, and as my mom can attest, never, ever, forget the cherry licorice.
As financial planners, we often remind clients that travel planning isn’t only about flights and hotels—it’s also about protecting your financial accounts, making smart money decisions while you’re away, and a couple of small measures to make sure you can devote all your attention to the journey.
We’ve put together a few planning tips that you should consider before your next trip.
Before You Leave: Protect Your Accounts
A few simple steps before departure can significantly reduce the risk of fraud or account disruption—that way, you’ll be able to enjoy that cocktail without a single nagging worry.
1. Notify Your Financial Institutions
Many banks and credit card companies are better than they used to be at detecting legitimate travel, but it’s still wise to:
- Add a travel notice through your banking app if available. This little head’s up will avoid lengthy time at the airport ATM. I wish I had told myself this before heading to Argentina when I was in my 20s!
- Verify that your contact information is up to date.
- Ensure you can receive fraud alerts while traveling.
2. Enable Security Features
Before leaving, make sure you have:
- Strong, unique passwords. We know this has gotten rather annoying, but it’s less of a hassle than being on hold with your card company when you should be on the zipline in Costa Rica!
- Two-factor authentication enabled.
- Biometric login activated on your phone and banking apps.
3. Bring More Than One Payment Method
A common travel mistake is relying on a single credit card.
Consider carrying:
- One primary credit card.
- One backup credit card from a different issuer.
- A debit card for ATM access.
- A small amount of cash.
Smart Financial Choices While Traveling
Use Credit Cards for Most Purchases
Credit cards generally offer stronger fraud protections than debit cards.
If a credit card is compromised, the disputed charges usually don’t immediately remove money from your checking account.
Be Careful with Public Wi-Fi
Avoid logging into banking or investment accounts on unsecured public networks.
If you need to access sensitive accounts:
- Use your cellular connection.
- Use a trusted VPN.
- Log out completely when finished.
Monitor Accounts During the Trip
Take 30 seconds each evening to review recent transactions.
Catching suspicious activity quickly is one of the best defenses against fraud.
International Travel: Extra Considerations
Choose the Right Card
For international trips, a card with no foreign transaction fees can save meaningful money over time.
A 3% fee may not sound large, but on a $10,000 trip, that’s $300 in avoidable costs.
Pay in the Local Currency
When a merchant asks whether you’d like to pay in U.S. dollars or the local currency, paying in the local currency is often the better choice.
This avoids many unfavorable conversion rates through a process called dynamic currency conversion. This can vary significantly depending which country you’re visiting, though, so a little research about the region you are visiting can go a long way.
Use Bank ATMs
If you need cash abroad:
- Use ATMs connected to established banks.
- Avoid standalone airport or tourist-area ATMs when possible.
- Again, this can vary significantly depending on which country you’re visiting.
What If Your Wallet Is Lost?
Even the most diligent traveler can have momentary lapses in carefulness. Just ask my wife, who kindly reminded me that I’d need my passport if I’d like to leave Chile, while it was comfortably resting on the restaurant table we had just left. As much as I’d like to daydream about being stuck in Chile for a couple of years, the tips below may help you remain mobile should you find yourself without an important document.
Before traveling, keep a secure record of:
- • Card issuer phone numbers.
- • The last four digits of each card.
- • Passport information (for international travel). I will often carry a couple of photocopies of my passport in case it is lost.
- • Emergency contact information.
Store this information separately from your wallet, and in multiple places.
How Can Bloom Wealth Advisors Help?
- In our Bloom Client Experience, you can upload a picture of your passport to have on file. That way if anything happens to your passport and you need a copy, we can provide it to you. It’s also a smart idea to have a copy of your passport on you. You can log into our Client Experience here: https://www.bloomwealthadvisors.com/client-logins/
- Need help planning or finding a tour? We have many clients who’ve had great experience with tours and travel agents, reach out if you want some help planning your trip or talking about ideas.
- Want help understanding how much you can spend on travel? Maybe we’ll encourage you to splurge on that first-class air fare. Or maybe we’ll encourage you to consider spreading out some trips so that you can travel longer in your retirement. We can show you how your overall financial plan is impacted by your travel goals. We recognize that travel is a top priority for many of our clients.
- Send us some travel photos! Many of us on the Bloom team are avid travelers and would love to exchange travel stories.
As always, we at Bloom Wealth Advisors want to help you plan for all your goals. If you’re planning a major trip (or maybe just dreaming about it), reach out so we can help guide you.
We can discuss budgeting, cash-flow planning, or travel-related financial considerations.
We also can’t wait to hear all about your travels, both the stories of trips taken and the trips that you’re planning for now.
Warm Regards,
Evan Welch, CFP®, Wealth Advisor
Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors.This information is not intended to provide specific legal, tax or other professional advice.
For a comprehensive review of your personal situation, always consult with a tax or legal advisor.
