Money Matters

The easiest and most economical way to have cash for daily expenses is to have a debit/ATM card. With this, you can withdraw local currency directly from your US bank account at favorable exchange rates. 

If you have someone you trust at home, you may also want to consider giving someone temporary access to your account or a financial power of attorney that allows them to complete banking transactions on your behalf while you are abroad, particularly if you plan to be abroad for longer periods of time. Alternatively, you can leave your bank account information with a trusted family member or friend who can deposit funds for you or transfer funds to you if the need arises, without having full access to your accounts. Of course, this may not be the right option for everyone, so consider your personal situation and if this makes sense for you. 

The biggest advantage of exchanging money with your debit card is that transactions are based on the wholesale exchange rate, which is often 2-5% better than what you can get from exchanging cash at a local exchange counter.

Given that most places in the US do take credit cards and cash is becoming less and less common here, we've heard from some students that they haven't needed to use an ATM before. If this applies to you, we recommend using an ATM in the US a few times before you leave to familiarize yourself with how they generally work - they'll be mostly the same overseas, but may be a little different or in a different language. The good news is almost all ATMs will recognize your card as foreign-issued when inserted and will usually ask if you want to change the language to English. 

Important tips for using debit cards overseas are below:

• You may need to inform your bank that you will be going abroad - a transaction popping up from an unexpected location can cause a temporary freeze on your card.
• Make sure that your PIN will work for ATM withdrawals. Many ATMs abroad, particularly in Europe, do not accept PINs that are longer than four digits. Key pads also may not have letters, so you need to know your 4-digit PIN numerically.
• Understand the daily limit on how much you can withdraw from your account- many cards have a limit and will not allow you to take out more than this limit either daily or per transaction. Many travelers have thought their card "didn't work" overseas and later realized they were just exceeding their limits.
• Know if your card has a foreign transaction fee every time you withdraw cash. Ask your bank about charges for withdrawing money or using your card overseas. The fee could be a percentage of the transaction or a set rate per transaction, which can add up over time. 
  • Learn what the fee is, and ask about options for removing it, if possible. 
  • If the fee cannot be waived, consider requesting an increase in your daily limit so you could make fewer, larger withdrawals rather than frequent small withdrawals. Another thing you can do is to consider opening an account with a bank like Chase that have branches overseas and will not charge a fee if you use your ATM card.
• Avoid using debit cards for everyday purchases, and instead use cash you withdrew at the ATM or a credit card which offers more protection. This gives less chances for your debit card (connected directly to your bank account) to be hacked or compromised.
• Carry your ATM card with you only when you know you'll actually need it, otherwise leave it safe at your accommodation. This safeguards against pickpocketing - if you do get pickpocketed and they get your cash, they won't get your debit card as well.
• When using an ATM abroad, you may be asked if you want to accept or decline the ATM's conversion rate, it's typically best to decline this and continue the transaction. This means you're declining the proposed rate at the ATM, and your bank will instead handle the conversion. This will get you a more favorable conversion and can save you money. Consistently declining the conversion can save you big bucks over the course of your program! 
• Consider an RFID blocking wallet or card case to help avoid your card information being skimmed without your notice
• Avoid carrying your debit/credit cards in your phone case, if your phone gets lost or stolen, you've also lost your card which means twice the issues to resolve afterwards. 
• Some businesses will ask you if you want to pay in USD or the local currency, choosing the local currency often gives you a better exchange rate. If you choose USD, you're accepting a pre-determined exchange rate that is often a bit higher.

We recommend that all study abroad participants carry a major credit card in their name. Visa and MasterCard are accepted in most places in the world. Discover and American Express are not widely accepted and are not recommended for using overseas.

Here are some important tips for using credit cards abroad: 

• Cards with a chip or better yet, with tap are preferred overseas. Almost all countries have set-ups for chip or tapping and you can still swipe this if somewhere does not have the newer technology.
• Notify your credit card company that you will be using the card abroad.
• Note the phone number to call if you have issues with your card or if it is lost or stolen. 
• Avoid using your credit card to obtain cash - this is not the same as using a debit card and is called a cash advance. The exchange rate will not be as favorable as using your debit card and you could end up paying high interest rates.
• Understand that credit cards are not accepted everywhere, and always check before ordering, getting into a taxi, etc... if you do not have available cash with you.

Although cash, once lost and stolen cannot be replaced, it is easy to use and almost always accepted. You should always have a small local cash reserve for small purchases or emergency expenses. Even today, when most places prefer cashless payments, you may find a restaurant, coffee shop, tour vendor, or taxi driver that doesn’t want to accept card payments.

Some students ask if they should take US dollars overseas with them, and while having a small amount in USD (preferably newer, clean bills of $20 or less) can sometimes come in handy - it is not legal tender in most countries abroad and therefore will not be very useful. The exception here is if you are traveling to a country that uses the US dollar, such as Ecuador. 

In a pinch, US dollars can be exchanged for local currency at a local bank or currency exchange counter at the airport. However, be aware that currency exchange counters give poor exchange rates, so we recommend avoiding these unless they are the only available option. 

Contactless payments options such as Apple Pay or Google Pay are becoming increasingly common around the world- in fact some students studying in major cities report it was their main form of payment during their program. 

In some locations, especially in major cities, this will work exactly as it does here in the U.S., but in others you may find it’s only accepted in limited places. Therefore, you shouldn't rely on it exclusively as your only form of payment. Some students report it works perfectly fine in their home base city, but are surprised when traveling on the weekend that it may not work in other cities within the same country, or in another country that they go to visit. 

Remember it is connected to a credit or debit card you’ve set up—so the same information about debit or credit cards above still apply (including foreign transaction fees, if your card has them). Apply Pay or Google Pay is just another way to use your card to pay, but it's still ultimately using a card as payment. 

In addition, if using this as your main form of payment you should be aware that if you are separated from your phone (left it at your apartment, lost it, or it was stolen) you then cut yourself off from your main form of payment. 

Know the contact numbers of the bank or credit card company for the card you've set up with your payment method so you can contact them quickly if your phone is lost or stolen, and always have a back-up ready to go (a physical credit card, a debit card, or stash of cash). 

In some cases, setting up a local bank account may make sense for you - especially if you are studying abroad for a full year or receive a scholarship that is paid to you in local dollars.

However, for most students- especially on shorter programs, this is often not necessary and carries more hassle than it may be worth. 

Depending on the location you are studying in, this option can involve many steps. It may require obtaining things like a local tax number, resident permit, providing utility bills or proof of residence, etc… These things can often be difficult (or even impossible) for study abroad students to obtain or access.

If interested in this option you usually do have to wait until you are overseas to set up the account as banks often won’t work with you in advance to set it up. We recommend reaching out to local resident staff in country for advice on what others students have done recently, information on local banks to consider, and doing your diligent research to make sure this is the best option for you.

There are forms of payment that we do NOT recommend that study abroad students use - the good news is most students aren't familiar with many of these forms of payments, but if you are (or if you're a parent or grandparent reading this), you may have questions about these options as well.

• Traveler's Checks - while still available, these are not widely accepted overseas and should not be used for study abroad expenses. Even if students understand how to use them, most people overseas will not accept them now that credit cards are so widely accepted.
• Personal Checks - these are not valid outside of the U.S. and should not be used as a primary or back-up form of payment.
• Cash only - of course you may understand the challenges of carrying large amounts of cash overseas, but this should not be the main plan for any student. While having a back-up stash of a few hundred dollars is one thing, carrying the amount you'd need for a full semester is just not feasible or safe. If primarily using cash if your plan, carry a debit card and withdraw cash from an ATM as needed.

• Seek out free entertainment. City parks, town squares, pedestrian districts, and downtowns offer interesting sights and sounds. Visit churches which often have breathtaking art. Know which museums are free to the public. Mingle with the locals!
• Walk as often as you can if you are able to! Most Americans think of walking as an exercise rather than something to get them somewhere, but people in many parts of the world think nothing of walking a few miles to work or school everyday. Walking a few blocks rather than paying for a transport ticket when you are able to can save a lot of money over time.
• Preparing your own meals is probably more nutritious and certainly cheaper. Can’t cook? Write down some favorite recipes on note cards to take with you, or learn to prepare a few simple local dishes.
• If you do go out, avoid touristy locations with “We speak English” signs. Go where the locals eat. You get better food for less money and going with the local specialties gets you the best quality for the best price.
• Do your souvenir shopping in cheaper countries where gifts are more interesting and your dollar stretches the farthest. Don’t be afraid to haggle! In many parts of the world, this is expected.
• Buy local food and goods at grocery stores as souvenirs and save some cash versus tourist shops.
• Look up friends, relatives, or other contacts who you may be able to stay with or share a meal.
• Know what deals are available. Passes like Eurail or Britrail can only be purchased in the US and are often pricier than passes available to the locals.
• Know your travel options. Things like rail passes can offer big savings, but only if you are traveling a lot over several days. For short tips, point-to-point tickets are cheaper. Sometimes, a basic bus ticket can get you somewhere faster and cheaper than a train.
• Buses, while usually slower, are cheaper than trains or planes. Weigh the pros and cons of cost versus speed.
• Always ask if there is a student discount available and keep your student ID handy to receive it.
• Safely store your money and only carry with you what you need. You’ll save money by not losing it.
• Always take a moment to review any transaction. Assume you might be short-changed and count for yourself. Always ask how much. Don’t let a cashier rush you. Be polite, but firm if needed.
• Travel with a buddy to share and save.
• Take the roads less traveled. The more popular the city, the more expensive it is. Look for where the locals go, or smaller cities.
• In some places, and common in Europe, meals are cheaper at the bar than at a table. If you only need a quick bite, just go to the bar.  A caveat: that could mean you will be eating standing up! Ask locals for similar tips in the country you’re in.
• With some basic precautions, staying at a youth hostel rather than a hotel can save you money. Always read the reviews and check the location before booking.
• Stay healthy and be mindful of your safety at all times. You don’t want to be saddled with medical bills.

• Have at least one primary and one back-up form of payment
• Always tell your bank and/or credit card company you are traveling abroad, for how long, and where
• Know if you will be charged foreign transaction fees or not
• Keep an eye on your wallet at all times
• Use discretion when going to an ATM, don't make it obvious you just withdrew cash
• Try to use ATMs inside a bank whenever possible
• Look closely at an ATM before using it, if it appears to be tampered with at all find a different ATM to use. Be especially wary of ATMs near popular tourist attractions, nightclubs, or other locations frequented by tourists that require cash.
• Do not carry all your forms of payment and all the cash you have on you at once, carry what you need and replenish when needed
• Know the exchange rate so you understand how much you are paying
• If given the option to pay in local currency or USD, always choose the local currency
• Be careful digging through your wallet in public places, especially in crowded areas and public transport - thieves may be watching to see what you have and where you stash it. If you need to count your money or search for a card you can't seem to find, try to do so in a private place such as a bathroom stall. 
• Consider storing things like a public transit card, room key, etc... that you need frequent access to separately from your wallet, but still in a secure place such as a inside pocket of your bag. 
• Think smartly about where you put your wallet and the bags you carry - your back pocket isn't a good place for anything important, and open-top tote bags are easy for someone to reach inside when you aren't paying attention. While special pickpocket-proof bags aren't necessary, thinking through the options you choose to use goes a long way to helping prevent pickpockets.
• In crowded areas carry your bag or backpack on your front and not your back, keep your hand on your bags and ensure all pockets are zipped. 
• Never leave your bag, wallet or phone unattended - even to run to the restroom.
• Consider purchasing RFID-blocking sleeves or wallet for your debit card, credit card, and passport