Are you traveling abroad for vacation this year? You will need to exchange your American money for the currency used in your destination country. Exchanging currency can be confusing and making mistakes during this process can cost you financially. Use these tips to make your currency exchange go smoothly and avoid losing money through costly mistakes.
Always Change Your Currency Before You Leave the U.S.
It can be difficult to know exactly how much money you will need when traveling abroad. However, waiting to change your currency until you arrive in your destination country is a big mistake. You will pay a lot more to exchange your American dollars, and those fees can quickly eat up your vacation money.
Therefore, you should always exchange your cash before you leave the U.S. Allow yourself ample cash for spending. By changing your currency over before you go, you can exchange it at U.S. locations that do not charge outrageous fees, such as your bank, or large banks like Bank of America, Wells Fargo, and Chase.
Get a No Foreign Fee Credit or Debit Card
If you do not want to carry a lot of cash, or you simply are not sure how much cash you will need, your best option is to get a credit or debit card that charges zero fees for foreign transactions. Plastic is easier and safer to carry than cash. Moreover, you will never have to worry about running of out of money, provided you stay within your spending limits.
If You Must Exchange Currency Abroad, Do It Wisely
Emergencies happen. If you find yourself running low on currency and you need to exchange U.S. dollars for foreign ones, you must choose your exchange location wisely. Otherwise, you will be slapped with outrageously expensive transaction fees.
In this situation, your best option is to withdraw cash at an ATM. The cash you withdraw will be in the local currency. Under no circumstances should you withdraw cash or exchange currency at airports, hotels, or tourist venues. All of these places are expensive and will charge you ridiculous fees.