Kayla and Mike had left their wallets in their room while they were at the beach. "We should have used the hotel safe, but we figured we wouldn't be gone long," said Mike. "Besides, everyone seemed so nice, we couldn't imagine being robbed," added Kayla. When they returned from their swim, their key didn't fit. "The lock had been broken, but miraculously, nothing was missing. We figure the maid had come and scared the would-be robber. We had a lot of cash, wedding gifts, and it was still sitting in the drawer. Were we lucky!" exclaimed Mike.

Because cash is so easily stolen and virtually untraceable and irreplaceable, carrying large amounts of it is never a good idea. And thanks to credit and bank cards and traveler's checks, you really need only limited amounts of cash.

Many travelers suggest setting out with about $20 in single bills for tipping and another $100 in five-and ten-dollar bills as a reserve-more if you're going to a country where U.S. dollars buy more than the local currency. Also exchange at least $50 to $100 into the currency of your destination in case you need cash before you can get to a bank.

The Best Ways to Pay

Traveler's checks are replaced if lost or stolen and can be obtained from most banks. Some banks and travel clubs offer free traveler's checks to members. Otherwise, you'll probably pay a 1 percent fee. You may also want to consider using American Express Traveler's Checks for two so that either of you can use the checks.

If you're going abroad, consider purchasing traveler's checks in foreign currencies. They're available from many banks, currency exchange services, and travel agents. Foreign currency traveler's checks will save you on exchange rates and fees, and you won't have to worry about where to exchange them. However, because you'll pay a fee every time you convert from U.S. to local currency, try not to purchase more than you're sure you'll need, and exchange leftover checks before you return home.

For the best exchange rates on cash or traveler's checks, head for a national bank; many have branches at international airports. Keep in mind that currency is bought and sold, just like oil, wheat, or any other commodity, and the prices fluctuate daily. And as with commodities, a handling fee and /or commission is charged for each exchange. That's why it's cost-effective to exchange only the amount you'll spend. Although exchange rates are generally posted, fees and commissions often aren't, so be sure to ask. You may decide to change your currency in larger increments if you're paying a fee for each transaction. Always keep your currency exchange receipts. In some countries, you'll need these to convert unused currency back to U.S. dollars.

In addition to banks, most major hotels and large department stores as well as exchange houses also convert currency, although you'll usually pay slightly more for the convenience. Small shops, taxi drivers, and street vendors in most countries are not set up to exchange U.S. currency or traveler's checks and will generally-and justifiably-charge a premium for their effort.

Major credit cards are widely accepted in most countries, especially in big cities. And by using a credit card, you won't pay a commission on exchanging your money. If the U.S. dollar is increasing in value against the currency of the country you'll be visiting, there's an additional advantage: the delay in processing (up to a week or two) means you'll benefit from the changing exchange rate. Of course, if the dollar's value is decreasing, the opposite is true.

Many credit cards can also be used to obtain cash advances. VISA and MasterCard can even be used at member bank automated teller machines (ATMs) to obtain cash advances. American Express issues its cardholders cash advances at any of its offices. Also check out the American Express Cash Now program. Be sure to check with your card issuer (call the number on your bill) before leaving to see if and where your card is valid. You'll probably need to be assigned a personal identification number (PIN).

Many small hotels, inns, restaurants, and shopkeepers do not accept credit cards. If you plan on using a credit card to cover most of your travel expenses, check ahead with your lodgings, and if you're going overseas, ask the tourist office of the countries you'll be visiting which credit cards are the most widely accepted.

Bank cards are becoming increasingly useful. If your bank is a member of the Plus or Cirrus network, you can use ATMs around the country and the world to withdraw cash from your account. And you'll get the best exchange rate-the interbank rate, which can be up to 5 percent better than the rate you would get from a bank or money exchange service. Ask your bank if it charges a transaction fee for overseas use. If so, you may want to avoid withdrawing money frequently in small amounts.

Be sure to check with your bank before you leave to see if you need a special (PIN) number or enhanced card and for a list of locations in the places you'll be visiting. Because the system is fairly new, don't rely completely on your bank card as a source of cash.

Before you go, make a list of traveler's checks, credit card numbers (and cancellation/reissue procedures), and if you're going abroad, a copy of the identification pages of your passports. Leave one set with a trusted friend or family member and carry a copy--separate from these items-when you travel. It will make these items easier to replace if they are lost or stolen en route.

Carry a pocket calculator, or better still, a currency converter, so you can quickly calculate prices in dollars. Many guidebooks and shops offer handy exchange rate tables; however, before using one, be sure it's not based on an outdated exchange rate. There are many types of compact currency converter devices. The best ones will let you set an exchange rate at the start of your trip; then all you'll need to do is enter the local price and see its U.S. dollar equivalent. Some also convert temperature, distance, weight, and international clothing sizes to U.S. equivalents.

Tipping

In most countries, good service is rewarded with a gratuity. However, in a few countries, especially in the South Pacific, tipping is frowned upon.

Some hotels and restaurants-especially in Europe and some parts of the Caribbean-automatically add a service charge to your bill, in which case you may want to leave small change or 5 percent, depending on the service and the type of establishment. Ask when making your reservations so you don't end up tipping along the way and paying the service charge on your final bill.

If you are honeymooning at an all-inclusive resort, tips are probably included. If so, no further tipping is required. In fact, at some resorts, worker scan lose their jobs for accepting tips.

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