Financial Tips for Teenagers Traveling Abroad
Whether for leisure, self-discovery, or the pursuit of greater education, traveling abroad is an unforgettable experience. This is especially true for teenagers, as they get to see the world in a new and eye-opening light. While traveling has its benefits, it comes with its fair share of constraints. One of the most prominent challenges is the cost of the trip itself. From accommodation and airfare to daily necessities, traveling can be a notorious cash drain, leaving many returnees with little to nothing in their bank accounts. This is particularly true for financially strapped teenagers.
8 Financial Tips for Teenagers Traveling Abroad
However, it’s not impossible to enjoy your time overseas while maintaining your financial health. With a little forethought and some strategic planning, anyone—including teens—can have a fulfilling experience abroad. Here are eight financial tips that teenagers can utilize when traveling internationally.
#1. Prepare a Budget!
Before embarking on your trip, create a budget with a maximum spending allowance. The sooner you establish your budget, the better prepared you’ll be. Consider setting up a separate travel fund to help with discipline. As much as possible, try not to exceed this budget. The budget amount should reflect the relative costs of your intended destination. Whether traveling to Southeast Asia or Europe, research airfare, accommodation rates, local transportation, and food expenses ahead of time. Two cities can have entirely different average daily costs, so advance research is crucial. For low-cost regions like South America and Southeast Asia, daily expenses may be lower, but airfare could still add significant costs to your overall budget.
#2. Bring an Emergency Fund!
When abroad, you won’t always be in familiar surroundings. In any new place—whether it’s a tranquil village or a bustling city—unexpected situations can arise. To mitigate potential risks, ensure you have a small emergency fund available. You don’t need a large amount, just enough to cover daily expenses or assist you in getting out of a pinch. Store this cash safely, avoiding easy-to-access spots like your wallet or regular backpack pockets. Considering secure locations such as deep in your luggage or hidden compartments can help safeguard your funds.
#3. Go on Free Walking Tours!
If you’re traveling for leisure, consider joining tip-based walking tours. Locals often run these tours, offering a unique and personal perspective on the city’s highlights. Plus, these tours do not require hefty fees, allowing you to immerse yourself in local culture without straining your budget. Engaging in conversations with your guide can further enhance your understanding of the place you are visiting, making for an enriching experience.
#4. Use Public Transportation!
While rideshare apps and taxis can be convenient, using public transportation is generally more cost-effective for teenagers. If your destination features a well-established public transportation system, take full advantage of it. Although it might take slightly longer to reach your destination, opting for public transit can save you considerable money, allowing for travel costs as low as a dollar compared to significantly higher rates with taxis.
#5. Stay in Hostels or Budget Dorms!
Unless your accommodations are covered by family or friends, seek out affordable lodging options. While hotels may offer comfort, they often come with hefty price tags—especially in areas with a high cost of living. Hostels, on the other hand, not only provide budget-friendly accommodations but also serve as social hubs where you can meet other travelers, share experiences, and gather recommendations for local attractions.
#6. Change Your Currency Outside The Airport!
A general rule is to exchange currency away from airports. Airport exchange centers typically impose steep markups, which can diminish your funds. Look for local, authorized currency exchange locations in public areas such as malls for better rates. Look around to ensure you are getting an appropriate amount based on current rates.
#7. Get Travel Insurance!
While it may seem like an unnecessary expense, travel insurance is invaluable in emergencies. Anything can happen abroad; theft, injuries, or loss of belongings may occur. Travel insurance protects you from incurring extensive out-of-pocket costs. Furthermore, if you’re planning to visit multiple countries, ensure your insurance coverage accommodates your itinerary.
#8. Learn The Local Business Practices!
If you wish to purchase souvenirs, keep in mind that some countries have a culture of negotiation. As a foreigner, being prepared to negotiate with merchants can help you save money. Additionally, opt for less frequented areas for shopping, as prices may be more competitive compared to tourist-heavy spots, potentially saving you 10% to 20% on your purchases.
What strategies do you use to manage your finances while traveling abroad? Share your tips and experiences below!
