your questions: travel money matters
Thanks so much for the really insightful questions. I’ve tried to lump your questions into common categories, so that I can answer them thoroughly and quickly (not an easy feat with jet lag!). It seems like money is one of the biggest unknowns in planning a trip abroad. So, let’s start there.
How much did I budget for hostels, shopping, food, etc.? Overall, I stuck to a under-$100-a-day travel budget: $50 for accommodation (in some cities, it was cheaper, and in some, $50 wasn’t possible - like, Milan, where there is no backpacker’s hostel) and $50 for food and entertainment (i.e. museum entrance fees). Many days, I spent far, far less than $50 a day on food and museums - but I was counting on that; better safe than sorry. I budgeted $0 for shopping; I knew if I bought it, I’d have to carry it. In the end, I broke down and spent $200 on trinkets for my sisters and mom, and a handbag for me. Gosh, it’s pretty.
Note: It’s quite possible to do Europe for much less than I spent - and in another post, I’ll put together some of the best money-saving tips out there. Sadly, they often involve spending less on food, which I was not amenable to doing.
How much do hostels cost? Well, that all depends. In my experience, you can stay in most hostel dorm rooms (8-10 people) for 18-20 Euro a night. Places like Venice were more expensive (almost double!) and private rooms (with shared bathrooms) ran about twice the cost of dorms. Before you finalize your budget, though, check to see if the hostel offers breakfast. If not, that’s another expense you need to consider.
What’s the biggest waste of money when traveling abroad? Museum entrance fees to see works of art that are famous, but ultimately, really boring. I wish I hadn’t paid to go into the Uffizi, for instance, but I wouldn’t hesitate to drop 12 Euro to see the Doge’s Palace. Read up on sights before you pay to see them.
What’s always, always worth the money spent? Good food. I’ve never once looked back and said, “Man, I shouldn’t have spent my hard earned Euros on that plate-lickin’-good (fill in the blank). I should have saved my money and had a sandwich.” Do yourself a favor, and leave room in your budget for a few good meals. It will mean the difference between loving a country and falling in love with a country.
Tip! When making your budget, make sure you factor in how crappy the US dollar is doing these days. When I made mine, there were 1.4 USD to a Euro. While I was traveling, it was more like 1.5. And the GBP? Well, sound as a pound isn’t just a cute little rhyme. There were 2 USD to every pound while I was there.
What’s a good amount of money to carry? Only as much as you can afford to have a pick-pocket steal. There are ways to protect your valuables (which I’ll touch on in another post) but it’s not smart AT ALL to carry around too much cash.
Is it best to use credit cards, cash or a combination? I’m so glad you didn’t say traveler’s checks. ‘Cause those things are a pain. If your hostel allows you to pay with a credit card (and you’re good about paying that thing off when you get home), that can make things a lot easier. Do not get on the plane with wads of cash. ATMs are easy to find for your cash needs, and cash is easiest for quick transactions like those with food vendors and shops.
You should know that in Europe, most ATMs only accept 4-digit PINs. I changed my 6-digit at the local branch of my bank before going overseas.
What language(s) do you speak? Could I possibly get around with “learning” only one and maybe a few key phrases in another? I have no aptitude for learning languages.
To piggy back on your credit card/cash/etc commentary: If folks do decide to rely on a credit card, be sure to call the bank before you leave to let them know what you are up to and to note that you will be making international charges. If you charge gas at home in Topeka one day and then train tickets in Prague a couple days later, the charges will very likely set off little fradulent-charge-alarm-bells in your account. These alarms may consequently lead your bank to freeze your card and that’s one heckuva pain in the whatsit to resolve while abroad.
Fish, I agree wholeheartedly with your advice, especially the part about the food. I will say that I always take a few hundred dollars in Traveler’s checks in reserve and they have gotten me out of a tight spot several times (like in Paris when my credit card and cash were stolen - it took a few days to get access to other money and without my checks I don’t know what I would have done). Keep them in a separate place in your luggage. They are not convenient to use, but you can cash them at any bank or Bureau de Change for a good exchange rate if you need to. Or if you don’t use them, the bank at home will exchange them back for you for no charge.
Credit cards generally give you the best exchange rate, if they don’t have a foreign transaction fee! On my last trip I realized my lovely cc company had started charging me a percentage for each for foreign transaction, which annihilated any exchange-rate benefits. That had never happened before. Grr
Deanna, I have a few words of German, Spanish, and French but am by no means fluent in any of them. I have found it is nice to practice greetings and small talk in each country but that finding your way mostly in English is always possible. Of course learn as much as you can but don’t let language barriers stop you from going!
Just something to be aware of regarding credit cards: some European cards have chips embedded in them, and automated machines may not take American credit cards w/o a chip. We ran into this with the automated bike rental and the train ticket machines in France. I’ve since read that some people with rental cars have run into problems at unattended gas stations– their cards wouldn’t work at the gas pump and there was no one there to accept cash even if they had enough cash.