Money Mindfulness When Traveling Internationally

Learn from my mistakes

Happy Weekend, Travel Friends!!

Today I thought I’d share with you some lessons I’ve learned the hard way.

Make Sure You Understand Exchange Rates…Sort Of

Right now the Euro and the Dollar are basically equal. What a joy when traveling to Europe! But it won’t stay that way forever. And what about the Pound or Czech Koruna? The Vietnamese Dong? The South African Rand? With a simple understanding of current conversion rates you can save tons of heartache upon your return home when your travel credit card bill arrives. It’s as easy as putting a currency converter app on your phone and doing a little math in your head. But don’t obsess over it. You just need a basic understanding of the country you are in versus USD to know how to generally guess what you’ll actually be paying for that afternoon cappuccino.

Use a Credit Card with No Foreign Transaction Fees

This one is easy if you have a travel credit card. Most offer no foreign transaction fees worldwide. But if you are traveling with another type credit card, make sure to call your company well before departure to check on their fees so you can make other arrangements if necessary. Take a different card. Apply for a travel card with no annual fee. Don’t throw your money away on foreign transactions when it can be completely avoided.

Always Select the Local Currency When Paying With a Credit Card

This one got me gooooood the first time I traveled to Europe. I purchased a meal or coffee, swiped or tapped my card like usual, and the next message asked if I would like to pay in USD or EURO. I knew the conversion rates. I understood how much I was spending. Why wouldn’t I choose to pay in my own currency, the USD? So I did…over and over again…only to return home and discover that I was charged an additional 4-6% on every purchase because the restaurant had to pay to convert my payment to USD before they could get their money…which meant I had to pay for the conversion. This was a service that my credit card would happily do for free upon my billing. Duh! Does that make sense? If not, just trust me. ALWAYS select the LOCAL currency when paying with a credit card internationally!

Consider Taking a Backup Credit Card

I always take a second credit card as my backup and hide it somewhere deep inside my luggage, just in case. My fear of being in another country without a source of money far outweighs my fear of losing my card. So I take a photo of all my cards before I leave and email them to myself. If one gets lost or stolen, I can immediately report it to my card company to stop payments, but I can’t create a second card out of thin air when on the road. So I take two. AND I often make sure I have one in my phone’s digital wallet, as well.

Don’t Exchange Money at Street-Side Exchange Stalls

Street-side stalls are so convenient and enticing. All you want is a few bucks changed over for a street vendor around the corner. Of course, you can go to the random stall, but expect to be taken for a truly terrible exchange rate. I find this the same in airports. Look for a bank. They give the fairest rates. And if you can’t find a bank or it’s closed due to a bank holiday, then ask the concierge at your hotel or the owner of your Airbnb. These folks will be able to steer you in the right direction.

ATM: Don’t Select Your Own Currency For Conversion

This is the same principle as you just read above for credit card usage. Just don’t select USD conversion…ever.

Don’t Use an ATM with a Markup Fee

Euronet ATMs are notorious for 12% markup fees on every transaction. It’s a classic predatory scam, often located outside of restaurants or museums. I’m sure you can find ATM’s similar to these all around the world. Choosing ATMs connected to legitimate banks (ie. ATMs outside of an actual bank entrance) is the safest bet.

Remember that in many countries there is very little need for much cash at all. Some places like Denmark, who have a strict credit card preference, seem to actually see cash as annoying. Do your research.

FYI - when I travel to Europe I usually only take about $120 in cash and often come home with most of it.

Consider Getting a Charles Schwab Debit Card With No Foreign Transaction Fees

This card saves me every time. Each fee initially gets charged and then automatically credited back to your account, so there is never a fee on top of any transaction.

More info here

Registration for the Big Story Living Curated Journey to Europe in Fall 2023…Closing January 31!!

Don’t miss your chance to see the world for almost free in 2023!

Message me today for more details. I would LOOOOOVE for you to join us!

Happy Travels!

Amy