Posts Tagged ‘purchases’

By Andrew Salmon

You don’t have to be a currency broker to understand the foreign funds you’ll be passing out on your next trip.

The following are six tips designed to help your money go as far as possible when traveling abroad:

1. Dollar For Dollar – Plan out your travel route well in advance and book hotels online. Many of the world’s hotels offer you cost breakdowns in the currency of your choice so you’ll know exactly how much you’re paying for that room or rental car. There are also online currency conversion sites to help in this area. Avoid credit card bill surprises by knowing how much things cost before packing your bags.

2. Stuff The Mattress – If your trip has been a long time in the planning, then one step of that plan should be checking the market value for the currency you’re going to need. If the exchange rate is at an all-time low six months before you’re scheduled to leave, then purchase the amount you’ll need for your trip and sock it away until departure time.

3. Credit Where Credit Will Do – Most credit cards charge extra for purchases made in other currencies. Capital One currently does not. So if you think you’ll be leaning heavily on the plastic for your next trip, you’ll want to switch to a card that does not add a fee to purchases made in foreign currencies. Finding this out before you leave rather than on the bill when you get home will save you some headaches.

4. Your Kingdom For A Bank ATM – If you do need cash while abroad, then find a bank ATM. Non-bank ATMs usually charge substantially higher fees for cash withdrawals than most banks so it’s worth it to take the time to find the bank closest to you. If you’re lucky, your bank at home will have a branch, or an affiliated branch, abroad which can save you some fees. Don’t pay for convenience while traveling unless you really want to pay for convenience.

5. Spend Like It’s Going Out Of Style – Banks will sell you currency at the highest current rate. However, they will not buy it back from you at this rate. So if you want to avoid this loss, spend your foreign currency while you’re abroad. If necessary treat yourself to a lavish meal at the airport restaurant. And use your coins to pick up reading material for the plane, snacks in the airport and so on. Back home, your change will be worthless so lighten your pockets before you board the plane.

6. Exchange Counter Bandits – If you simply have too much currency to spend or lack the desire to do so just to be rid of it, then be sure to avoid exchange counters in airports, bus terminals and train stations. As these places believe they have you at their mercy, they offer hideously low rates in a flat out attempt to take advantage of travelers desperate to shed unwanted currency. If you fall into this category, then exchange your money at the bank or hold onto it until you get back home. You’ll still lose on the exchange but not as much.

Author Information

Andrew Salmon is a contributing writer for the life insurance quote website LifeCover.ca.