Besides the language barrier, the whole foreign money thing is probably on the top of the list for anxiety when travelling abroad. Once you get the hang of it, though, you can kind of relax and enjoy the ride. Planning ahead of time really cuts down on how much of an idiot you feel like when it is time to actually fork over the dough. {I have to say, the Euro really helped to uncomplicate things in this arena.}
Getting the most bank for your U.S. buck is really just a matter of a bit of research. First things first, check with your bank. Most of the time, using your credit or debit card, or pulling money from an ATM will yield you the day’s best possible exchange rate. Though, in fair warning, if you use an ATM other than your own bank’s, you will probably get hit with a fee {it’s minimal, usually around $3-$5 USD}. If your bank charges for foreign transactions, you may want to call around to other banks/financial institutions and see about opening a different credit card, etc.
Next, know the exchange rate. It will fluctuate a bit–sometimes daily, but usually, you will have general idea. I like to use the site xe.com when I am planning my vacation so I can see up to the minute exchange rates. It helps me plan my vacation better. I like to know how strong my money is when I am budgeting. If you watch it long enough, you will know when the rates are favorable.
While I usually carry some cash in the currency of the country I am travelling, I try not to over do it. Every time you exchange dollars to euros, for example, there is a transaction fee. Exchanging leftover foreign currency will get you yet another fee.
Try to avoid exchange companies in the airports {and train stations}. They charge a much, much higher fee than ATM’s. It’s the price of convenience, I guess. If you need cash on hand BEFORE you get to the country to tide you over until you can find an ATM, go to your local bank or American Express office. They can usually “order” the currency you need for a small fee. Also, if you can’t find an ATM once you arrive, look for a post office–they will usually be able to convert money–again, at a higher fee than an ATM.
Do you have any experience with exchange rates? What are your tips?
~Mavis
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