We all need a certain amount of foreign currency when travelling abroad, but how much do we need to take and where should be buy it?

The options available for purchases abroad are huge - local currency, travellers cheques, credit cards and debit cards? Where should you change your currency - local bank at home, airport, hotel, high street travel agent or online and which is going to give you the best rate?

Exchange rates and transaction charges vary considerably depending on where you change your money, so it's best to check out your options in advance and keep an eye on the exchange rates with an online currency converter.

It is advisable to change some money into local currency prior to departure to cover immediate costs on arrival such as taxi fares, refreshments and other immediate necessities.

Money can be changed prior to travelling at a local bank, travel agent or online - generally the commission rates charged at hotels and airports can be significantly higher. For a time saving tip, order your currency online - exchange rates are competitive and currency can be delivered to your door for roughly the same costs as buying currency on the high street but without the hassle. The convenience of changing money at hotels and airports abroad are often outweighed by the

rates and commission charges imposed. Purchases can be made using a credit card, or debit card can be a good option as the exchange rates are usually quite favourable. However, be aware of the exchange rate fluctuations, currency conversions do not happen instantly, so if your home currency is falling your purchases could cost you more than you thought.

ATMs are a convenient way of obtaining cash abroad with your debit card (cirrus or maestro), but check the fees your bank charges before you travel.

Often regarded as one of the safest ways to carry money abroad, travellers cheques gives you great peace of mind - replacements can be issued, usually within 24 hours, if they are lost or stolen. Travellers cheques are not always the cheapest way to exchange money, but are available in Euros, Pounds Sterling, Australian Dollars, US Dollars, Canadian Dollars, Swiss Francs and Japanese Yen. Euros can be exchanged in Austria, Belgium, Finland, France, Germany, Greece,Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain. Travellers cheques do not expire, so unused cheques can be saved for future trips. Check around for exchange rates but be aware that commission free does not necessarily mean it's the cheapest option.

However you decide to pay for your goods abroad, it is advisable to take some currency with you. Change it in advance, shop around for the best deals, and only change money at your hotel or airport if you have no other choice.