Traveling to a foreign country, whether for business or vacation, can cost quite a bit of money. But booking the airfare and hotel rooms is only the beginning – once you arrive at your destination, you’ll have to pay for almost everything you do. The big question then, is what’s the best way to pay for everything when you’re abroad? Should you pay for everything with a credit card? Or is it better to exchange currency and stick to cash? With that in mind, we decided to put together some pros and cons for carrying cash when you travel abroad.

Pro: Paying in cash helps you stick to a budget

The problem with paying for everything with a card is that it can be easy to lose track of how much money you've spent, especially when you're buying a lot of souvenirs, snacks, or entertainment. These types of purchases can add up quickly and it can be easy to mindlessly swipe your card when you're having fun.

This is where carrying cash can help. If you create a daily budget and then only carry that amount of money each day, you'll be more likely to stick to your budget. Each time you open your wallet, you'll have a visual cue for how much money you have left, which can help you avoid overspending.

Con: It's less convenient than carrying a credit card

If you go for an all-cash approach, it’s likely you’ll start to accumulate an assortment of small bills and coins as your trip goes on. And while there isn’t really anything wrong with that, it can become quite unwieldy to have pockets overflowing with loose change and a wallet crammed full of small bills. Using a card for your transactions helps you avoid this inconvenience.

Pro: You can avoid fees and surcharges

While the card you use abroad may not charge foreign transaction fees, there's no guarantee that the establishment where you're spending your money won't tack on a fee or surchage. They're usually called a "convenience fee" or "service fee," and unfortunately, they can be more common in areas frequented by tourists. You can avoid paying extra for the privilege of paying with a credit card by using cash.

Con: You can't earn points or rewards on cash purchases

Many credit cards, like those in our suite of credit cards, offer rewards like points or cash back for every purchase you make. As these points or cash accumulate, you can use them to pay for your next trip abroad!

Our suggestion? Use cash and a card...

Given these pros and cons to carrying cash abroad, there are clearly certain situations where one method of payment is preferred over the other. While it makes sense to carry around cash for discretionary spending like souvenirs, snacks, or entertainment, a credit card would be better suited for larger purchases like lodging, nice dinners out, or transportation. This way, it will be easier for you to stick to a budget while also having the flexibility to make large or one-off purchases.

...but exchange your dollars for foreign currency before you leave

It can be easy to put off exchanging currency until after you arrive, but who wants to waste time scrambling to find a currency exchange when you could be enjoying your trip? Plus, with most places in airports or tourist-heavy areas charging higher prices just because they can, there's no guarantee you're getting a good exchange rate if you exchange money at your destination.

National Bank of Arizona can help you exchange your currency – both before you leave and after you get back – so you can be sure you're getting the most competitive rates and genuine currency.

To get started, simply schedule an appointment at any of the following branches for an on-the-spot foreign currency exchange (we recommend calling ahead to make sure they have what you need on hand). You can also order around 80 different foreign currencies ahead of time at any of our branches.

• Biltmore:  6001 N 24th St Phoenix, AZ 85016
• Wilmot: 335 N Wilmot Rd Tucson, AZ 85711
• Cornerstone:  9878 W Camelback Rd Glendale, AZ 85305
• Flagstaff:  211 N Leroux St Flagstaff, AZ 86001