A Financial Planner's Guide to a Stress-Free Adventure Abroad

A tourist couple in Venice pause to look at the offerings at a street market.

(Image credit: Getty Images)

Planning a trip abroad is exciting — but it also comes with financial considerations.

With travel costs on the rise, especially for in-demand destinations, building a financial plan in advance can help you stay on budget and reduce stress.

Here are four key strategies to consider when planning an international trip.

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Start with a realistic travel budget

There will always be some unknowns, but the best place to start is with your largest expenses: flights and accommodations.

Tools such as Google Flights can help you track pricing trends, set alerts and identify the best windows to book.

Even if your exact dates aren't finalized, plugging in your departure airport and destination will give you a range of costs. That early baseline will help you estimate a realistic budget.

Keep in mind that airfare is anything but static — in August 2025, prices jumped 5.9% from July after staying relatively flat earlier in the year.

Once you have a sense of airfare, drill down into your other costs, such as hotels, transportation and day-to-day expenses. It won't be exact, but having estimates helps you save with intention and reduces the risk of overspending.

Use smart booking strategies

Small adjustments can make a meaningful difference. Shifting your departure or return by just a few days — or choosing a weekday instead of a weekend flight — can noticeably lower costs.

Your credit card might also offer a travel portal with preferred rates on flights, hotels or other travel-related costs.

For example, Capital One Travel allows you to use rewards miles to pay for part of a flight purchase.

Some issuers also award bonus miles — sometimes as much as five times the standard rate — when you book directly through their systems. Over time, those perks can stretch your rewards further and help reduce costs.

It's also wise to consult at least two or three travel search sites before committing. Costs vary for flights, hotels and especially rental cars, since some companies will offer much more competitive rates on similar cars.

Signing up for rental car rewards programs can unlock better prices, and booking through major platforms such as Expedia might qualify you for cash back via rebate sites such as Rakuten.

It might be only 1% or 2% cash back, but every bit helps, especially when costs are elevated.

Plan for currency conversions

Currency conversions are an unavoidable fact of international travel. In the past, travelers had to exchange large sums of cash and keep careful tabs as they spent it down.

Today, credit cards with no foreign transaction fees are the simplest way to pay abroad; put all of your spending on those cards, and plan to pay them off completely each month.

Research the cards you have — credit cards that are geared for travel often waive foreign fees and don't charge per transaction (Capital One's Venture card is a good example).

That's important because nearly half of all U.S. credit cards still charge a foreign transaction fee, with an average of 2.61% per purchase.

Digital wallet apps such as Apple Pay or Google Pay add convenience and security, helping make them safer than carrying cash.

That said, it's useful to carry small amounts of cash for food and public transport, but in most countries it's easy to pay electronically.

Instead of changing money at the airport, which typically charges higher fees, request currency in advance from your bank.

Prepare for unexpected travel issues

Planning for emergencies while traveling abroad can be tough. U.S. health insurance typically doesn't cover medical expenses incurred overseas, which is why some travelers opt for travel health insurance.

Trip cancellation can also be worth the extra cost, though it usually needs to be purchased at the time of booking; otherwise, it might not be available later.

If you'd rather not pay these costs, research the cancellation policies on your flights, hotels and car rentals.

Airlines might issue credits for canceled flights, but those credits sometimes expire.

Hotels and car rentals might be refundable if canceled far enough in advance, though last-minute cancellations typically incur a fee.

If you plan to drive while abroad, check whether your domestic insurance coverage applies in another country.

Often, it doesn't, but car rental companies can provide liability coverage, and some credit cards include supplemental protection if you use their card to book.

For example, American Express might provide this depending on the type of booking and the country of destination. Knowing your coverage before you leave can prevent expensive surprises later.

Save on food and fun

Research in advance can help stretch your budget. More than 80% of Europe's national museums now offer free admission for children and teens.

For example, the Louvre in Paris is free for visitors under age 18, and the British Museum in London is free for everyone (although donations are suggested). Doing your research can help you identify these opportunities.

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On the dining front, if you're traveling to a country where food or restaurants tend to be expensive, consider staying in a place with a kitchen.

In many countries, groceries are reasonably priced, adding to the cultural experience by living more like a local.

Final thoughts

Traveling abroad is exciting, and with some advanced financial planning, you can enjoy it without worrying about unexpected costs.

By setting a budget, booking strategically, planning for currency and emergencies, and finding ways to save on food and activities, you can have more peace of mind while traveling.

When you return, you'll bring home more than just souvenirs — you'll carry the satisfaction of knowing you made smart financial choices along the way.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Shane W. Cummings is based in Halbert Hargrove’s Denver office and holds multiple roles with Halbert Hargrove. As Director of Technology/Cybersecurity, Shane’s overriding objective is to enable Halbert Hargrove associates to work efficiently and effectively, while safeguarding client data. As wealth adviser, he works with clients in helping them determine goals and identify financial risks, creating an allocation strategy for their investments.