Because backpackers tend to travel on the cheap, some people might think there's nothing to steal - and that their money is perfectly safe since they're so poor.

Not so!

On the contrary, because backpackers often travel off the beaten track and are often some distance from banks and bank machines, they often have to be more thoughtful than the average traveler about how much money to take, in what form, and where to keep it.

When backpacking first became popular in the 1960s and 70s, there were basically two ways of taking your money with you: cash and travelers checks. Both of these methods are still valid - but there are some new ones too.

Carrying Cash

Usually it's best to carry cash in two currencies - in the local currency, and in either US dollars or Euros, depending on which part of the world you are. You should carry enough local currency to see you through a day or two, take a cab into town from the airport, eat a meal or two, and pay for a night at a hostel. The bulk of your cash would then be in dollars or Euros.

Travelers Checks

These are also spelled travellers cheques, depending on your country of origin. They've been around for decades and are still a favorite among travelers. Simply put, you buy a check - from American Express, Visa or similar company - and cash it in at your destination. The downside is that you'll have to pay 1% commission for these. On the other hand, if you lose your travelers checks, you'll get your money back. Travelers checks come in major world currencies - US dollars are accepted everywhere, but if you plan on spending most of your trip in Europe, you might as well get them in Euros right away. If you want to cash the checks, you'll have to go to a bank or a change office so beware, they're not open all day everyday so this might take a bit of planning.

ATM Machines

What didn't exist in the early days of backpacking was the ATM machine, now ubiquitous in even the remotest parts of the world, with a very few exceptions. By using a simple credit or debit card, you can access the cash you left safely in your bank at home. You could also consider the newer prepaid credit cards, which take all the risk out of credit card use. Just pay up front before you leave and only spend what you already have.

Many international ATMs have an English language function so you will actually be able to understand what you're doing. You will be able to get money in the local currency wherever you are, and not worry about exchange rates and fluctuations. Many credit cards also have accident or theft insurance so be sure to check this out before you go. Using ATM machines isn't free - you will have to pay either a percentage of your transaction or a lump sum each time you use one. Make sure you find out how much your bank charges before you leave.

Overseas Money Transfers

If all else fails and you run out of cash, have cashed all your travelers checks and demagnetized your cards, there's always the wire or overseas money transfer. Make sure you arrange this with friends or family before you leave home. As long as someone back home has money, they will be able to send you cash within a few hours anywhere in the world through Western Union or other similar companies. Just drop into your nearest Internet cafe, and send an emergency email.

Carrying Your Money Safely

Whatever your money of choice - cash, travelers checks or cards - make sure you invest in a good pouch in which to carry your wealth. Here are some alternatives:

• travel money belt: it has an elastic waistband and goes around your waist, under your shirt or blouse and tucked inside your trousers. This is a good place to keep the bulk of your stash. Take out what you need for the day, and don't touch it again. The last thing you want is for everyone to see you have one!
• neck wallet: this is a light pouch that hangs around your neck and is tucked inside your blouse or shirt. It is slightly less safe than a travel money belt but a lot more comfortable. There's no reason you can't split the money between the two.
• ankle or let wallet: this is similar to the travel money belt but instead of going around your waist, it goes around your calf or ankle. This can be a good solution if what you're carrying is small, or if you're not comfortable about wearing something snug around your waist.

Whatever money pouch you choose, the important thing is to keep it hidden so no one can tell you are carrying it (even though most will probably suspect it). Keep the day's cash in your pocket or an outside pouch so you can get to it easily. Since it is a relatively small amount, losing it won't mean the end of your trip. If you are carrying cash, make sure you have new bills - many countries don't accept dollars that are more than a few years old!