Around and Round We Go

As you plan to embark on your adventure, you will most likely plan to spend some money while you’re there, unless you are on an all inclusive resort only with everything covered. Since you are planning to spend, there is a 90% chance that you would need that host currency while there. Times before, it was just cash, but now you can use your card anywhere. So, I will break down the currency advice in cash and card.

NEED TO KNOW

Currency fluctuations as time moves on. When you get physical currency, the amount you get is based off the exchange rate at the time. Exchange rate is the amount of money you can get from a country based on the amount you spent (i.e. 1 USD = .92 euros). So the amount you give today can increase or decrease depending on the country. EACH BUSINESS THAT DOES CONVERSIONS CAN GO BY A DIFFERENT TYPE OF EXCHANGE RATE. Some are more accurate then others or update conversions at different time. Regardless, please make sure to ask what the exchange rate is and compare. A site for conversions that I used: https://www.xe.com/currencyconverter/. Other people also recommended Wise as well.

CASH

When it comes to going abroad, the rule of thumb is to have some money in cash in case of emergency or if places don’t accept card (there are still store that only do cash.) I recommend around $100 – 200 for any unexpected cost as you are starting. That should be able to cover your ride to your lodging, any fees at the airport, souvenirs you want to buy, food in case of delay, and any emergency lodging due to changes in the itinerary. [Studying/working/living abroad seekers, It is recommend to have at least one months worth of expense saved up in case things begin to change.] This means that

Advice: AVOID airport exchanges if you can. They are great for when you truly need it, but they come at a price of an exchange fee. You can give them cash to exchange or card. They will have a board in the back that let you know the exchange rate for those currencies.

“But how do I get currency exchange, if I’m not at the airport.” If you plan long enough before you travel abroad, you could go to your banks and ask if they do a currency exchange. You can then get a currency exchange based at the bank and they can deliver it there for you to pick up. Most banks do require you to be a member to get that benefit. The fees at the bank can vary depending, but I know some credit unions could go as low as free.

Insight: Did you know that if you have a AAA membership that you can get currency for your travel at no cost.

Another insight: There are international ATMs where you can get money, but they typically have a fee to use the ATM, a fee for international conversion from the account, and possibly any other fees. Not every ATM is an international ATM, so please look research their locations. Typically, they are in airports too.

Card

As you begin to venture out into the world, you realize that some of your debit/credit cards might not work in different countries, or isn’t widely accepted. Even if that country does, the merchant might not, but you have cash for that.

“How do I know which merchants accept what card?” Typically, there should be a sign with the symbols as to what card they accept. You should be able to tell if your card is acceptable or not. Worst case scenario if there is no sign, you would have to ask before shopping.

If I was to give a top spot to card that can be used, I would I give it to VISA. You can look on their site to learn which countries. Next comes Mastercard. Third, surprisingly is discover. I didn’t see any American Express accepted where I went, but then again I was moving on a budget. I recommend carrying one visa and one MasterCard to be safe. However, I traveled with a visa & discover card and things turned out fine. *Please note that you do have a maximum to withdraw cash from if you do decided to use card*

Mentor-given advice: Create two bank accounts with the same bank OR get two cards WITH DIFFERENT NUMBERS to the same bank account. Even though I put in my time abroad to the bank, it would occasionally lock me out due to fraud alerts. I had to use the other card to make purchases until I am to get the other one turned on. Since my credit union didn’t allow for two cards on one account, I had two different accounts and transferred money to each account.

With debit card, you can make purchases and have them converted into USD. My credit union did have a fee to use the card, but it was about 1.5%. Look at your bank to confirm if there is an international service charged. Credit cards typically have a 3% transaction fee, but could be zero depending on the benefits of your card. The way the percent works is that it gets converted and then the percent of that conversion is the charged as a fee. Each cent matter, so make sure you know how your bank and credit card company will charge you if you do so.

Gimmick: I have seen that people would pay with their credit card and then pay the credit card using a debit card and takes the points from the purchases to get a nice cash back. If you are advance with your credit skills go for it, if not don’t do it. Your interest accrued will negate the bonuses.

Please use your money wisely. I suggest coming back to this article when you are planning to travel and for when you are there. It