Cash or Credit? What's the Best Way to Handle Money on the Road?

Tickets, reservations, luggage, charging up batteries - getting ready to head out on the road?

With the upcoming long weekend (and more travelling in your future, fingers crossed), it's good to make a checklist of what to do (and have with you) before you go away.

Everyone thinks about the house and what they need to take with them, but what about cash or credit? Should it be either/or?

Whether it's a short time or a long time, make it a good time by taking some time to know how to deal with the money.
Here's some tips to consider when going on vacation:

1. If you're staying in Canada - it's low-stress travelling. A prepared traveller has both cash and credit available, just to cover all the bases, whether it's to tip someone or the way to get last-minute tickets.

2. Travelling to the United States - Canadians can use their credit cards for the easiest and best conversion rates for paying for things, but it makes sense to have some cash too. Access an ATM at your destination, but pay attention to fees - look for major bank ATMS not the private company ones or you'll pay high fees for withdrawals.

3. Travelling to Europe - once again credit card is the best option - but don't use it to take out cash without checking your fees and conversion rates. Check the exchange rates to see if it might make sense to change loonies for Euros here before departure.

4. Travelling to other continents - credit cards will be the best option in big cities, but if you're the kind of person who likes to wander local markets and eat in small, local places, local currency is a must. Exchange money at the airport, a major bank or at your hotel - and do some research before you leave to know the exchange rates.

5. Travelling off the beaten track - hiking in rural areas? Heading to a remote island? Make sure to take local currency with you - small places/rural airports will not have the same services as a major airport - you'll be hard pressed to find an ATM or bank and there could be several places that don't accept credit cards.

Remember to contact your bank to ask about fees, currency exchange and call your credit card company if you travel a lot - who wants to come back to more bills than expected?

Many credit card companies will now block transactions in foreign countries as fraud protection - avoid the hassle and do the pre-trip preparation. Be wary in some places - perhaps it's better to barter and talk cash?

And with the new PIN-chipped credit cards - know your numbers so you don't get caught without access to your card and know where they may not work because of older systems (such as rural Asian and African cities/countries).