Managing your money wisely on the road
Credit Cards, ATMs, Foreign Exchange
CREDIT CARDS
Make sure the credit card you travel with has the following features:
Set up for auto-pay through your home back account (easier to pay from the road)
Charges no international transaction fees (Amex typically charges 3-5%, Visa/MC 2-3%)
Earns miles and/or cash back for transactions you make, so you can earn free flights!
I have had solid service from Capital One.
BANK/ATM CARDS
Avoid monthly charges (maintain sufficient minimum balances at home).
Watch your statements for strange charges and dispute if incorrect.
Alert your bank to your travel destinations in advance of your departure so your card will work there.
Travel with a card from a large, reputable bank (HSBC is best, in my opinion) which may have overseas branches.
Use the ATM network listed on your card (Cirrus, Mastercard, etc) whenever possible.Travel with some cash (small bills like 10s and 20s) from a developed country (US, Europe, NZ, Canada, etc) to exchange when you first arrive in a country (until you get to an ATM). Even in expensive countries, a subway/train/bus can always get you into town for less than $10.
If the fee seems outrageous, cancel the transaction and try another bank.
FOREIGN EXCHANGE (FX)
NEVER use a Foreign Exhange broker/dealer/stall when arriving except in an emergency, especially in an airport!
WHY? They have a job in that booth they make money from you on every transaction. Sure they may advertise "NO COMMISSION" and that may be true, but they will give you local currency at a poor rate (typically 1-5%) below the market rate. Want to see how much they are making? Look at their BUY vs SELL spread on their rates board, there is your answer. The bigger the difference, the more they make.
WHEN TO USE? If you are leaving a country and have extra money you won't use again. Then you cut your losses (3-5%) and convert into the next currency where you are traveling to.
ALWAYS DECLINE exchange rate offered on the ATM screen if presented with an option. Why? Your friendly home bank will automatically convert your transaction into your home currency at the day's market rate. If you want to be sure, write down the day's exchange rate (EUR1.33, for example) and the divide your ATM withdrawal amount by the exchange rate. It should be approximately the same. If you accept, the local bank will convert your transaction at it's special "tourist/foreigner" rate (typically 3-5% lower than the market rate).
NO ATM?
If you must get local currency to get from the train station/airport into town, exchange one of your $10 or $20 bills - just enough to get you a meal and into town where ATMs will likely exist.
OTHER CONSIDERATIONS
Try to exchange notes/cash/bills close to where they come from (i.e. Singapore dollars in Malaysia, not in Italy) as the dealers can usually pass along better local rates to you.