You can't leave home without money.

Ozebookings editor Sven Puetter looks at ways to arrange finances on your next trip.

Traveller's cheques

They are safe but they are also take time to organize and are expensive. You will be paying around $8 or 1 per cent, whichever is more, for your traveller's cheques. At the other end the costs are a commission, and/or a reduced exchange rate, to change your cheques into hard currency.

These days they are more commonly used as a back up to the trusty ATM/Cash Card.

Advantages: If you lose them or they are stolen they can usually be replaced in less than 24 hours.

Disadvantages: For all their well known advantages and reliability they can still be difficult to change in out-of-the-way areas, especially from less well-known companies, and you need to take your passport for identification.

Cash

So you want to take that $4,000 with you.

It will cost you about same amount to buy US dollars, euro or pounds as it does to buy traveller's cheques. The trick to making cash work is to get your money in small denominations and to buy the different currencies you need on arrival. This way you won't end up with bits of odd, unchangeable notes by the end of your trip.

Advantages: You can change cash into local currency just about anywhere, often without paying a huge commission. By staying away from banks you avoid the queues and unpredictable business hours.

Disadvantages: If it is lost or stolen, it's gone.

Credit cards/ATM cards

The fantastic plastic is convenient. You will find ATM in the strangest locations ready to dispense the local currency.

Advantages: Automatic Teller Machines (ATMs) are easy to find, usually have English instructions, and while they may not always be open all hours, you probably won't need to fumble through your transaction in the local language. As with cash, for safety's sake, withdraw small amounts as you go. If your card is lost or stolen you can ask your bank for an emergency replacement, but this could cost you $200-plus and depending on where you are 24 hours may be a longer than you expect.

Disadvantages: Your bank charges hefty fees on overseas withdrawals. Most Australian banks charge an initial withdrawal fee of $4-$6, plus a cash advance charge of 0.5-1.5 per cent. If you buy an item or ask for a cash advance in anything other than Australian dollars a further 1% is charged.

Check if your bank has affiliations with other international banks. Withdrawals at their affiliates incur less onerous fees and charges depending on your account type and if you are taking out money out of an account with a positive or negative balance.

This gets tricky when using a credit card for a cash advance. Understanding fees and charges can be difficult as these surcharges on international transactions are included in the amount you take out. This is converted to Australian dollars (or the local currency on the receipt) and then debited to your account as one transaction in Australian dollars. From the one figure that appears on your bank statement it's often impossible to determine the breakdown in charges.

And remember, if you are checking your balance in another country, read your receipts carefully. We were travelling out of Japan in Australia some years ago, and our 356,000 yen account balance read Aus$356,000 - I resisted the temptation!

A new choice to consider

In Australia, Travelex has introduced pre-paid cash passport cards. These are available in several currencies, and work the same way as bank cards. You need to buy the card before you travel and there is a set-up fee of $3.75. A pin number protects your card. Travelex gives you two cards and fixes the exchange rate at purchase. Each withdrawal costs you an extra $3.50, but beyond this there are no extra fees. If your card runs out of money, it can be reloaded using internet banking or by phone. Your passport card can be used at any ATM in the world.