on traveler's checks

Traveler's checks? I stopped using them. First of all, I object to paying 1 - 1/5% of my money to the travel check company right off the top.

Secondly, when I cashed travelers checks at currency exchanges, I was given a lower exchange rate than cash.

Thirdly, most small businesses won't let you pay in traveler's checks. If they know about and can handle them, they'll also take credit/debit cards.

Fourth, hotels have small safes where you can keep the bulk of your money. Your money is pretty safe in airports if you're careful. And pretty safe in taxis from the airport to your hotel if you're careful. And then you should put it right into the hotel safe.

So I figured out that with local crime rates, my biggest risk from carrying a large amount of cash was going from my home to the airport.

foreign ATM machines

And depending on where you're going, you may be able to get cash from your home bank account using an ATM machine. Some ATM machines in some countries are plugged into Cirrus or another internatioal network. I pay just a $1.50 service charge for getting cash from my own checking account.

In the US I wouldn't pay that short of an emergency, but there's no shortage of ATM machines. But when I'm 12,000 miles away from my bank, $1.50 seems like a bargain.

Of course, sometimes the ATM machines are down.

Also, not all ATM machines will be linked to your US bank. They may just operate within the host country. Do ask at your hotel or a cab driver -- they'll often know where you need to go to get more cash.

Currency exchanges

I'll pass on a practical travel tip. In my experience, you should never exchange foreign currency in an American airport, if you can possibly help it.

Other countries seem to be much more honest than whatever financial institutions in the US run those little booths in airports. If you are afraid you won't be able to change money when you arrive in the other airport, because it's late at night or a holiday, see what kind of rate you get from your local bank before you go.

But there's no excuse to settle for a rip-off exchange rate. If you think you must, cash the barest minimum to pay the cab to your hotel and buy something to eat.

When you're leaving the foreign country to return to the US, exchange your foreign currency back to dollars before you arrive back in the US. The currency exchange booths in other airports will give you a much better rate. It is true they may not be open if you go to the other airport very early in the morning or late at night. In which case, do the exchange inside the country, leaving yourself only enough cash that you'll need.

In my limited experience, other countries do a much better job at exchanging currency than the US. Some have many little booths in tourist areas and are very professional about exchanging money and also getting you cash advances on your credit cards. Some are not so accomodating and the currency exchange shops are more likely Mom and Pop type outfits. But they're still common in tourist areas.