How to Save Money While Traveling in Europe: Smart Tips for a Stress-Free Trip
Planning your first trip to Europe? Wondering how much cash you’ll need, which card to use, and how to avoid extra fees? I’ve been there.
If you want to avoid that mistake, here’s exactly what you need to know about managing money smartly while traveling in Europe.
1. Use a Credit Card with No Foreign Transaction Fees
Before you leave, make sure you have a credit card with no foreign transaction fees. Foreign transaction fees can add 2–3% to every purchase, which adds up fast. Many travel credit cards (and some everyday cards) waive this fee, saving you money every time you swipe or tap abroad.
Pro tip: If you're not sure if your card qualifies, call your bank or consider applying for a travel-friendly credit card before your trip. Level up by getting one that earns you miles!
2. Always Pay in the Local Currency
When you use your credit card abroad, you’ll often be asked whether you want to pay in U.S. dollars or the local currency. Always choose the local currency. Paying in dollars gives the merchant the ability to set the exchange rate- often at a worse rate than your bank would offer. Paying in local currency lets your credit card company handle the exchange at a much better rate.
Pro tip: This is one I always second guess when I’m making the selection at the POS, just remember you want to experience Europe like a local, so choose local currency!
3. Take Out a Small Amount of Cash—Not Too Much
You will need some cash for small purchases like:
Local markets and vendor stalls
Public restrooms (common in Italy, Copenhagen, and many other cities)
Small tips at cafés or hotels (but remember tipping is not expected in most of Europe)
But you don’t need much. I recommend withdrawing the equivalent of $10–$20 when you arrive. On my first trip, I took out way more euros than I needed at a French ATM and spent the rest of my trip worrying about how to spend it before flying home. Had I relied more on my credit card, I would have saved myself a lot of unnecessary anxiety.
Pro tip: For safety, skip the airport ATMs. Instead, wait until you're in the city and withdraw cash from an ATM inside a real bank. Bank ATMs usually offer the best exchange rates and are more secure.
4. Be Aware of the New Uber International Fee
If you plan to use Uber while traveling abroad, note that Uber now charges an international transaction fee in some European cities. To avoid it, go to Wallet in the app, select your card, and turn off the conversion to be charged in local currency.
Pro tip: Don’t even bother with Uber. Walk everywhere you can and embrace public transportation. Download Google Map (or Citymapper) for the city you’re visiting, and it’ll help you easily navigate the Tube, Metro, or local subway system.
5. Tap to Pay Makes Everything Easier
Contactless payments have made traveling in Europe easier than ever. You can use Apple Wallet, Google Pay, or a contactless credit card for nearly everything:
Cafés, shops, restaurants
Subway, metro, and bus systems
Museums, tourist attractions, and more
Pro tip: In cities like London, Paris, and Copenhagen, tapping your phone or card on the metro gates is faster and cheaper than buying paper tickets. No more fumbling for change or worrying about ticket machines in another language!
Final Thoughts: Spend Smarter, Stress Less
Thinking about money and payment options caused me way more anxiety than necessary on my first trip to Europe. The good news? Managing money abroad doesn't have to be complicated.
Use a no-foreign-transaction-fee credit card
Always pay in the local currency
Only withdraw a small amount of cash
Watch out for Uber’s international fee
Use tap-to-pay options wherever possible
Traveling smarter helps you save money, avoid hidden fees, and focus on what really matters- experiencing everything Europe has to offer. And if you want more insider tips like this before your next trip? Working with a travel advisor (like me!) can make the whole process smoother and less stressful.
