BUG - Backpackers Ultimate Guide to Australia

Europe is an expensive continent to travel around, particularly when taking into account the relatively low quality and high cost of hostel accommodation. However there are some bargains in Eastern Europe plus cheap European airfares and a few surprising deals like the £1 bus tickets in the UK and Germany's excellent Happy Weekend rail pass.

Work out your daily budget by tripling your accommodation cost. Multiply this by the number of days you’re planning on travelling, and add the cost of your airfare and bus/travel passes and you should get a pretty good idea of the costs of travelling around Europe.

You should be able to save some money by cooking all your own meals and not drinking alcohol, however there are lots of easy ways to blow through a wad of cash such as a few big nights out on the town or insisting on visiting every tourist attraction.

Travellers' Cheques

Travellers' cheques used to be the best way to carry travel money, however they’re not as common now that ATMs and credit cards are so widespread.

It is worthwhile taking some of your money as travellers' cheques since it is a great backup if you lose your wallet with all your credit cards or if you arrive to discover that your cash card won’t work in the ATM.

The beauty of travellers' cheques is that they can be replaced if they’re lost or stolen. It helps if you keep a record of your travellers' cheque numbers in a safe place, preferably a copy with you (but not with your cheques) and another copy at home (or somewhere where someone can fax them to you if you need to make a claim for lost cheques).

Many travellers buy travellers cheques in British pounds, euros or US dollars, which is fine if you’re travelling through lots of different countries. However travellers' cheques in euros are the most versatile as they have the advantage of being able to be used as an alternative to cash as long as you can find someone willing to accept them.

If you bring travellers' cheques with you, make sure that you sign them when you buy them, but do not countersign them until you are ready to cash them. You may also need to have identification such as your passport with you when you cash your cheques.

The most widely accepted brands of travellers’ cheques are American Express, Thomas Cook and Visa. Don’t travel with anything else as many people will not recognise or accept them.

ATMs & Credit Cards

Over the past few years, plastic has quickly become the preferred way to access your cash while you're on the road and most cards are widely accepted throughout Europe.

There are several types of cards, each with their advantages. Most travellers have at least one credit card, and also a card to draw cash from an ATM (either from an account at home or from a British or European bank account).

CREDIT CARDS

Credit cards are great for getting out of trouble and are often tied to a frequent flyer programme. One of the main advantages of credit cards is the favourable currency exchange rate as well the freedom to spend more money than you have. Of course this spending can get out of hand and you’ll end up paying for it later on.

The most useful cards in Europe are MasterCard and Visa, followed by American Express and Diners Club. In tourist areas you may find some places that accept JCB card, but Bankcard and Discover card are not accepted in Europe.

Most credit cards can be replaced quickly if they are lost or stolen. Contact your credit card company if you have lost your card:

ATM CARDS

ATM cards are a popular way to access your cash, particularly if your card is part of an international network allowing you to use European Automatic Teller Machines (ATMs). If the bank that issued your card is part of the Plus, Cirrus or Visa networks you should find plenty of ATMs in Europe where you can withdraw money.

Despite the favourable exchange rate and the ease of drawing your money from a cash dispenser, there are sometimes problems using your cash card abroad. Before leaving home you should check with your bank whether it is possible to use your card in Europe. In some cases you may need to change your PIN or even have a new card issued.

European Bank Accounts

If you're planning on spending a lot of time in Europe, your own bank account will make things a lot easier, particularly if you’re planning on finding work.

BRITISH BANK ACCOUNTS

If you're planning on working in the UK you’ll need your own bank account.

The biggest banks in the UK are Barclays (website www.barclays.co.uk), HSBC (website www.hsbc.co.uk), Lloyds TSB (website www.lloydstsb.co.uk), NatWest (website www.natwest.co.uk) and the Royal Bank of Scotland (website www.rbs.co.uk).

It can be extremely difficult for travellers to open bank accounts in the UK, particularly in areas where lots of backpackers live such as London's Bayswater or EarlS Court neighbourhoods and some travellers take the tube to the East End or suburbs in south London to open an account where banks are less wary of giving accounts to temporary residents.

You may have more luck opening an account with smaller banks and building societies such as Abbey National (website www.abbey.co.uk) and Alliance Leicester (website www.alliance-leicester.co.uk) or with online banks like Egg (website www.egg.co.uk), First Direct (website www.firstdirect.com) and Smile (website www.smile.co.uk).

When you go to open your account you'll need loads of identification including your passport, a letter from your bank at home (not always necessary but very helpful), bank statements from home and proof of your address (such as utility bills with your address on them).

IRISH BANK ACCOUNTS

You’ll need an Irish bank account if you're planning on working there.

The biggest banks are Allied Irish Bank (AIB; website www.aib.ie), Bank of Ireland (website www.bankofireland.ie), National Irish Bank (website www.nib.ie) and Ulster Bank (website www.ulsterbank.ie).

When you go to open your account you will need identification such as your passport plus bank statements and a letter from your bank at home to show your banking history.

Tipping & Bribery

Bribery in exchange for good service is common across Europe although it is not as deeply intrenched as it is in North America. Although the extent of tipping varys across Europe you would generally tip between 10 and 15% in more expensive restaurants that provide good service although tipping is not necessary where the a 'service charge' is indicated on the menu or bill.

Tipping is common, but not always expected, in taxis. You would normally tip a taxi driver 10 to 15% although it is OK to round up the fare for a short trip.

You never have to tip in a bar or pub.