How many times have you found yourself at your wit’s end while handling new currency in foreign lands? In all probability, like millions of other travelers, you also get baffled with the dynamic movements in exchange rates, the ways in which Euro connects to Australian Dollars (or for that matter, any other currency) and the regulations for getting back your local currency from the unspent amount.
Regardless of the destination you are planning to explore, it is worthwhile to take some time out and get yourself acquainted with the new cash in your hand-before you step outside the airport. Here are some tips for managing money on foreign soils-the right way!
Leave Traveler’s Cheques at Home
In earlier days, it was common for tourists to carry traveler’s checks and then convert the same into local currency at the authorized outlets. For instance, your dad probably converted his into cash at an American Express counter in Europe—a welcoming home for Americans when traveling abroad.
Well, changing money with the help of English-speaking persons at the desk of these banking outlets certainly felt good and made travel easier for most of the generation behind us. However, times have changed now. With ATMs becoming an order of the day and the many different European currencies giving way to the standardized Euro; AmExCo seems like a dinosaur.
So, encash all the traveler’s cheque you may have stacked away safely or leave them lying where they are -along with wasting your time at slow moving banks globally, they also attract fees of conversion. Credit cards, travel cards and ATMs are the way to travel in contemporary times!
Avoid/Minimize Cash Exchange
Are you aware that you end up losing good money every time you request a currency conversion? Well, our financial industry is quite masterful job in hiding this fact, so do be careful. On an average, you end up losing 8 percent when you exchange your dollars for Euros or any other foreign currency. Using the currency exchange booths like Travelex or Forex at the airport makes you lose approximately 15 percent.
It is better to look out for the best options of changing cash and go in for the one that services you at the most convenient rates. For instance, the postal banks situated inside the post offices in Europe are usually the most affordable alternative for travelers. Also, refrain from buying foreign currency much in advance and get rid them as soon as you touch your domestic terminal.
Use Local Cash
Much as you would like to exclaim , “Gee, the store accepts dollars!” and pull out your wad of domestic currency, remember to ask the sales clerk about the cost that gets added to your purchase bill-you will be surprised to know that you may end up paying 20 percent extra to align with the store’s customized private exchange rates. So, instead of buying in your own currency, use local cash, it’s always more profitable.
Have a basic idea about currency conversions and avoid getting short charged at theaters, restaurants, hotels and wherever else you go. These small but helpful tips go a long way in taking care of your travel budget and stretching every penny in your purse.