Stedman Payne is an experienced financial professional who serves as Member One’s Market Executive in the Lynchburg area. His financial educational series offers tips for making smart decisions when it comes to managing your finances.
Summer travel season is here. You’ve selected your location, booked your stay and are counting down until vacation time. But there’s another important step to check off your list: effectively managing and protecting your money so your anticipated getaway doesn’t turn into an unexpected staycation. An interruption in card service or lack of funds could seriously ruin any vacation no matter how exotic the location. I’m here to offer simple tips for keeping your financial life in order before, during and after vacation.
Q: What can I do ahead of my vacation to keep my accounts in check?
SP: One of the best things you can do is notify your financial institution before you hit the road, which can typically be done with a simple online form. A lack of funds due
to a limited cash supply and/or a frozen credit or debit card because of suspicious-looking account activity can immediately end the vacation fun. Letting your financial institution know that you’ll be traveling helps avoid interruptions in your credit or debit card services, especially if you’ll be out of the country, and helps protect you from identity theft. There also are several features you can set up ahead of your travel such as fraud alerts or text notifications based on transaction type or dollar amount to help further protect your accounts.
Q: I’m worried about my wallet being stolen with all my cards and personal information inside. Is there anything I can do to keep it safe?
SP: One way to protect your information before you leave is to record card numbers and customer-service contact information, your passport and insurance cards. Take photos of each item or record the information on paper and keep it in a safe location, such as a hotel safe. You also can store the information on your computer or email it to yourself. As long as you can locate an Internet connection, you’ll have quick access to this information in case you need to report that it’s been stolen.
Q: What’s the best method for making purchases while on vacation?
SP: In general, it’s best to pay for larger purchases, such as hotel stays or airline tickets, with a card. A credit card in particular offers the most security because, unlike a debit card, it’s not linked directly to your bank account so fraudsters can’t gain access to your money as easily. Plus, the card company might replace fraudulent charges made with your credit card. Overall, the best approach is to carry a combination of payment methods – a credit card for the majority of purchases, another card as a backup and cash. Having some cash on hand is helpful in case you encounter a merchant or service that only accepts cash.
Q: What financial tips do you have if I’m traveling out of the country?
SP: When traveling internationally, you will need to get foreign currency. You can obtain this when you reach your destination, but it might be wise to have a little bit on hand upon arrival to cover the cost of a taxi ride.
Your local financial institution can be a good resource to provide this or point you in the right direction. If you travel internationally often, look for a credit card that doesn’t charge foreign transaction fees to save on this cost. And don’t forget to notify your financial institution of your travel dates to avoid an interruption of services.
Q: Is there anything I should do when I return from my trip?
SP: Upon returning from your trip, look at your bank and credit card statements to check the accuracy of transactions. Get a receipt for every transaction made while on vacation and compare this to the total charged to your account. If you notice any discrepancies, reach out to the business where the error occurred. If you don’t have luck with the merchant, contact your credit or debit card issuer for help. This is why having receipts is important—they’ll come in handy in case you have to dispute a charge.
Tags: Finance, Law
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