Financial Tips for Travelers

While vacations serve as great breaks from the daily grind of the working world, they can often make a larger dent in your pocketbook than planned. And, if you don't take a few precautions to protect your finances while traveling, especially abroad, you could fall victim to theft, fraud and a lot of headaches trying to recover your expenses.

"Most people think that after their vacation is booked and the airfare has been paid, their big expenses are out of the way," says Robert Beardsley, banking center manager for Comerica Bank. "However, this can be just the beginning of your spending if you don't plan carefully and budget your expenses."

Those headed out of town, and especially out of the country, should consider the following tips:

Agree on a budget. Sit down with your family and agree to how much you are willing to spend and stick to it - budget for food, entertainment, transportation and hotel costs. To remain financially disciplined while traveling consider using cash or traveler's checks or a credit card with a pre-determined limit. However, Beardsley advises that you should always research your travel destination in advance, and learn about ATM accessibility and know how much money can be withdrawn in case of an emergency. Of course, always be careful about carrying large amounts of cash while traveling, especially in areas where theft and pick pocketing are common.

Tell your credit card company you are traveling. Before you leave, Beardsley advises that you let your credit card company know that you will be traveling, to where and how long. As some organizations are more sensitive than others, it could be possible that overseas charges are flagged as possible fraud. In addition, if your cell phone doesn't work while you're away, you wouldn't be able to tell that your card provider is trying to contact you. Enthusiastic vacationers might suddenly find themselves financially cut off, so plan ahead.

Make copies of your important documents. Beardsley says that this safety precaution can be the most beneficial in case your purse or wallet is stolen while you travel. Travelers should make two copies of all their important government and financial documents - fronts and backs of all credit cards, your drivers license and passport. Keep one copy in a safe place at home and store one copy in your hotel room in a secure place, such as a safe. If your credit cards are stolen, having copies with all your account numbers and 800 numbers will save you hours of tracking down your information and protecting it from fraudulent use. If you become a victim of theft while traveling abroad, be sure to notify your credit card company, the local authorities and if traveling abroad, the local Embassy or Consulate office, immediately.

Remember, on your next trip, it is definitely wise to think of your finances first. In the long run, a little bit of extra care can go a long way toward maintaining personal financial security.