I’m getting ready to go on vacation, and part of my journey will take me outside of the United States. Only so far as Canada, but still. Just an aside, that was not a snub of Canada. I really love Canada and have really enjoyed myself every time I visit. As I was pulling out my Canadian wallet (named thus because it is filled with Canadian money, not because it has the maple leaf or anything), I had a blog post idea. I wanted to share some of my tips on handling your money when you are outside of the United States.
1. Know the fees before you go. Does your financial institution charge you a fee to withdraw at foreign ATMS? What is that fee? You might want to do larger withdrawals at once to cut down on the fees.
2. Currency conversion shops are very expensive. Even with an ATM fee, you are more likely to get a better rate at an ATM.
3. There typically are currency conversion charges with VISA/MasterCard and debit card transactions that are not PIN based. Fees can range from 2%-5% based on my research. One thing to keep in mind, the exchange rate is still very good. Since the exchange rate is for a large number of transactions, it is much better than a rate you would get at a currency shop on the street. (I’m not hating on those currency conversion stores, I just don’t think they give you the best deal.)
4.Get a general idea of the exchange rate. For me, this makes sure I don’t overspend on any little items I might pick up on my journeys.
5. Have a backup. If you are crazy like me and travel alone, you need to be prepared. I have a little trick that I use especially when I leave the country. I have a travel checking account that I keep as a backup in addition to my regular checking account. Since they are linked online, if I lose the debit card to my main account, I quickly transfer the money out of that account to the backup account that has a separate debit card. I still notify my credit union (or bank) of the lost debit card, but it lessens the likelihood that my funds are sucked dry and I am stuck in a foreign land with no money. Yikes!
Have a travel tip to share? Leave it in the comment section!
Photo Credit: Stock Exchange
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