American Money

When travelling overseas, it’s most likely that you will need to change money at some point. Fees and rates can vary widely, so it’s worth working out which options offer the best value for money, and using those methods where possible. Try not to carry too much cash, and also have some travel insurance for safety.

Decide How Much You Are Likely to Need
Before you think about changing money, work out how much you think you will spend. You might want to change a little bit more than this, just to have a little bit of a buffer, but it’s worth having a ballpark figure. Once you have this figure, you can then work out which option for changing money is most economical. Some methods will incur a fee for every transaction, so if one can minimise transactions then this could be in your favour. One should also have plans for procuring more funds, should they end up being required.

Compare Fees Locally Compared To Overseas
If you can find out what sort of fees are charged for money exchange at your intended destination, then you have a clear picture of whether to exchange money at home, or once you arrive. An internet search, a guide book, or a friend that has already travelled to where you’re going are all good resources. In Thailand, for example, exchange rates offered are very reasonable, usually with no exchange fees. Even kiosks that are open well into the evening will generally offer a better rate than banks in one’s home country, as the latter often have an exchange fee on top of their exchange rates.

Have A Few Different Options
Running out of money in a foreign country is no fun at all. If your one plan to change money is thwarted, then holiday plans can be severely impinged. It’s worth having a few options up one’s sleeve. Exchanging a little cash at home, if you are worried about arriving with no funds can be one safety net. One can also purchase some travellers cheques. Taking one’s keycard or credit card on holiday are other alternatives. If these cards are linked to international networks like Cirrus and Plus (many cards will bear their logos), then you should be able to withdraw cash from ATMs in most countries.

Using ATMs
When using ATMs overseas, you’ll generally receive a pretty good exchange rate. You may however be hit with large fees specifically for using overseas ATMs. It’s important to know what your bank charges for this service, before you go on holiday. Try and reduce the number of ATM transactions by withdrawing larger amounts each time.

Banks over Exchange Kiosks
Exchange kiosks offer convenience to travellers by being available in tourist areas, and by staying open longer hours than banks. The price paid for these benefits is sometimes a horrid exchange rate. If it’s late at night, and you are down to your last few cents, then this might be your only option, but if you plan ahead, you can compare kiosk rates with bank rates during banking hours.

A bit of planning can make one’s dollars reach further on holiday. Having a clear understanding of the cheapest ways of accessing foreign currency will help you achieve this. While cheap travel insurance
will offer one sort of safety net, having a range of money changing options at your disposal should ensure you don’t end up cashless.