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Geane Dvorak of Ventura frequently travels internationally on business, visits family in Brazil and has a daughter at the University of St. Andrews in Scotland, so she often has to change U.S. dollars into the local currency.
"You would think, with all the traveling I do, that I'd have it figured out," Dvorak says. "But I don't."
Money matters bedevil even the most sophisticated traveler. The proliferation of automated teller machines and the introduction of the euro last year, now the uniform currency of 12 European nations, have simplified some aspects of the money equation, but travelers still must balance their needs with getting the best deal on exchange rates, security and convenience.
Among the questions they should ask:
• Will there be an ATM where I'm going?
• If I use an ATM, how do I know what exchange rate I'm getting?
• Where will I get the best exchange rate?
• Should I forget cash and just use credit cards?
• Should I carry U.S. dollars and exchange money there or should I exchange money before I go?
• Should I use traveler's checks?
• What can I do with leftover money at the end of my stay?
The answers depend on your destination and your comfort level and on how big a part convenience plays. The world market also may have a role.
In the last year, the dollar has lost value against some currencies in destinations popular with U.S. travelers, including 15% against the euro. Some money experts say the introduction of the euro led to increased prices as merchants converted prices from their local currency.
"The main consumer perception is that businesses rounded up," Chris Matthews, spokesman for the European Commission, says of the price conversions. Inflation across Europe ran about 2% last year, so the euro may have been "a piece of the inflation puzzle," he says, but its overall effect on prices was small and it was a one-time event.
The increased strength of foreign currencies against the dollar in the last year means that some places, once relative bargains, are growing more expensive. The South African rand is up 24% against the dollar, and the Australian dollar is up 11%, meaning that your dollar doesn't go as far.
As you formulate a spending plan, keep in mind that your choices will affect how far you can stretch your travel dollar. And smart travelers use more than one method.
"I usually take some cash and exchange it at the airport before I go so I can take a taxi when I get there," Dvorak says. "But most of my transactions once there are with a credit card."
Here is a rundown of several ways you can deal with money, compiled with help from money experts and travelers. I also conducted a currency exchange experiment recently in Europe to try to understand the various commissions, fees and exchange rate options.
ATMs
If you think ATMs are available only in the superpower nations, think again. Karen Staples of Ventura spotted one in a most unlikely place during an 18-day vacation last summer.
"You would think, with all the traveling I do, that I'd have it figured out," Dvorak says. "But I don't."
Money matters bedevil even the most sophisticated traveler. The proliferation of automated teller machines and the introduction of the euro last year, now the uniform currency of 12 European nations, have simplified some aspects of the money equation, but travelers still must balance their needs with getting the best deal on exchange rates, security and convenience.
Among the questions they should ask:
• Will there be an ATM where I'm going?
• If I use an ATM, how do I know what exchange rate I'm getting?
• Where will I get the best exchange rate?
• Should I forget cash and just use credit cards?
• Should I carry U.S. dollars and exchange money there or should I exchange money before I go?
• Should I use traveler's checks?
• What can I do with leftover money at the end of my stay?
The answers depend on your destination and your comfort level and on how big a part convenience plays. The world market also may have a role.
In the last year, the dollar has lost value against some currencies in destinations popular with U.S. travelers, including 15% against the euro. Some money experts say the introduction of the euro led to increased prices as merchants converted prices from their local currency.
"The main consumer perception is that businesses rounded up," Chris Matthews, spokesman for the European Commission, says of the price conversions. Inflation across Europe ran about 2% last year, so the euro may have been "a piece of the inflation puzzle," he says, but its overall effect on prices was small and it was a one-time event.
The increased strength of foreign currencies against the dollar in the last year means that some places, once relative bargains, are growing more expensive. The South African rand is up 24% against the dollar, and the Australian dollar is up 11%, meaning that your dollar doesn't go as far.
As you formulate a spending plan, keep in mind that your choices will affect how far you can stretch your travel dollar. And smart travelers use more than one method.
"I usually take some cash and exchange it at the airport before I go so I can take a taxi when I get there," Dvorak says. "But most of my transactions once there are with a credit card."
Here is a rundown of several ways you can deal with money, compiled with help from money experts and travelers. I also conducted a currency exchange experiment recently in Europe to try to understand the various commissions, fees and exchange rate options.
ATMs
If you think ATMs are available only in the superpower nations, think again. Karen Staples of Ventura spotted one in a most unlikely place during an 18-day vacation last summer.
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