You've booked your flights, your itinerary is set and now all you need is some local money. Getting foreign currency is easy but choosing the right method could save you a ton of cash.
Here are the 5 best currency exchange options available to you.
Using ATMs is the best way to get cash at the lowest rate. ATMs are everywhere and the best part is they only charge the spot rate of the day plus a conversion fee of 1-2%.
Your home bank might charge you an additional $2-5 for using a foreign ATM but this fee can sometimes be waived so talk to your bank. You need to call them anyway to let them know you'll be traveling otherwise they may block your card on suspicion of fraud. If the fee won't be waived, just max out your daily withdrawal limit each time to avoid making excessive trips to the ATM.
To find out which foreign ATMs are affiliated with your bank, check the back of your debit card and look for the PLUS (VISA) or Cirrus (MasterCard) symbols. When you're overseas, search for ATMs with the matching networks and you should be good. Both VISA and MasterCard have ATM locators so you can find the right ATM before you even take off.
Not only is using ATMs the cheapest way to get money, it's also the safest way since you'll never be carrying large amounts of cash. Note that internationally, 4-digit pins are the standard for ATM cards so change yours before you depart if it differs.
Credit cards are a must these days since you'll need them to book a hotel room or make large purchases. Credit card providers charge slightly more than ATMs by adding 2.5-3% on top of the spot rate whenever you make a purchase in a foreign currency.
You can avoid this fee altogether by picking up a foreign exchange free credit card. It works exactly the way it sounds; you won't be charged any additional fees when you make a purchase in a foreign currency. It's worth signing up for one of these cards even if you use it just when traveling. The CapitalOne VentureOne Rewards card is the most popular forex free card among U.S. travelers.
If you have a travel rewards credit card you get extra benefits that can save you a lot of money and grief. Most of these cards include travel medical insurance, lost/delayed baggage insurance, and trip cancellation/interruption as a standard benefit. With any insurance policy, read the fine print to find out exactly what you're covered for.
Similar to your ATM card, call your credit card provider to let them know about your travel plans to avoid any service interruptions.
Bindalfrodo /Stockpholio
3. Foreign exchange offices
Foreign exchange offices are located in popular tourist areas and airports. They offer better rates than the bank and in some countries their exchange rates are very competitive, but you need consider any additional fees that they might charge. They're also convenient if you're trying to get rid excess currency from a country you just left.
It's always a good idea to have some emergency U.S. Dollars with you; if you ever find yourself needing to dip into those funds then using a foreign exchange office is the quickest way to get cash.
Getting foreign currency at your home bank is usually the first place you think of, but it's a huge rip-off since they can easily charge upwards of 10% on the spread. Considering spending is a big part of any trip, that's a pretty big premium you're paying. Of course you don't want to show up in a new country without any local money so exchanging enough for a cab ride to your hotel is still a must.
That being said if you're changing money to a neighboring country's currency, e.g. U.S. dollars to Canadian dollars or sterling to euros, the bank spread is usually fair.
I'm not sure why traveler's checks are still billed as a convenient and safe way to carry funds for travel; they really aren't widely accepted anymore. You pay a commission on the checks on top of the spread when you cash them in, so you're effectively paying a fee twice. They can give you peace of mind but there are better options available these days.
For more budget travel stories from Barry, check out his blog at Moneywehave.com. You can follow him on Twitter: @barrychoi
29 Ways You Waste Cash
29. Impulse Buys(01 of29)
Open Image ModalWho doesn't know that impulse purchases are a bad idea? I've even realized it was a bad idea as I was doing it. So here are three quick tips: 1. Make a shopping list. Take it with you and stick to it. 2. Eat beforehand. An empty stomach can doom the most prepared shopper, especially at the supermarket. 3. Shop alone. Bringing children (or a significant other who acts like a child) is a sure way to fill your cart with impulse buys. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="94" data-vars-position-in-unit="102">Flickr:</a><a href="http://www.flickr.com/people/lrargerich/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" lrargerich" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/lrargerich/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="95" data-vars-position-in-unit="103"> lrargerich</a>)
28. Buying Online Without Comparison Shopping(02 of29)
Open Image ModalWhen you shop online, there are hundreds of sites competing for your business. Buy those shoes at the first site you go to and you may be wasting money. Compare the purchase and shipping price at three or more sites before you buy anything. (credit:<a href="http://www.flickr.com/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="92" data-vars-position-in-unit="100">Flickr:</a><a href="http://www.flickr.com/people/theogeo/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" theogeo" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/theogeo/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="93" data-vars-position-in-unit="101"> theogeo</a>)
27. Paying For Protection You Don't Need(03 of29)
Open Image Modal26. Being Disorganized(04 of29)
Open Image ModalBeing disorganized about your finances leads to costly late payment fees and overdraft charges. You can easily rack up hundreds in fees. For example, even a single $25 late fee per month will cost $300 extra a year. Set up bill reminders and keep your checkbook balanced. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="87" data-vars-position-in-unit="95">Flickr:</a><a href="http://www.flickr.com/people/alismith44/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" aliwest44" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/alismith44/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="88" data-vars-position-in-unit="96"> aliwest44</a>)
25. Expensive Cell Phone Plans(05 of29)
Open Image Modal24. Not Using Coupons(06 of29)
Open Image Modal23. Oil Changes(07 of29)
Open Image ModalCars don't need oil changes as frequently as they used to. If you're getting your oil changed every 3,000 miles, you're probably doing it too often (and wasting money). Follow the recommended mileage in your owner's manual. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="76" data-vars-position-in-unit="84">Flickr:</a><a href="http://www.flickr.com/people/rstinnett/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" robertstinnett" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/rstinnett/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="77" data-vars-position-in-unit="85"> robertstinnett</a>)
22. Premium Fuel(08 of29)
Open Image Modal21. Not Taking Advantage Of A 401(K) Company Match(09 of29)
Open Image ModalMany companies will match an employee's 401(k) contribution up to a certain percent. If you're not contributing enough to meet the maximum match, you're losing out on free money. Ask your HR department for information on your company match. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="71" data-vars-position-in-unit="79">Flickr:</a><a href="http://www.flickr.com/people/urban_data/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" urban_data" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/urban_data/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="72" data-vars-position-in-unit="80"> urban_data</a>)
20. Bill Pay Convenience Fees(10 of29)
Open Image ModalSome online or over-the-phone bill payment services come with fees. For example, my electric company charges $2.95 to pay online through their website. Instead, I use free bill pay through my bank. I still get to pay online, but I skip the fee and save $35.40 a year. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="69" data-vars-position-in-unit="77">Flickr:</a><a href="http://www.flickr.com/people/kalleboo/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" kalleboo" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/kalleboo/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="70" data-vars-position-in-unit="78"> kalleboo</a>)
19. Hotel Fees(11 of29)
Open Image Modal18. Paying For Services You Don't Use(12 of29)
Open Image ModalAutomatic withdrawals make us lazy with our money. If you're paying for something each month - like a gym membership, magazine subscription, or streaming service - make sure you use it, or those charges will add up to wasted cash. For example, here are mine:
1. Gym membership - $29.99 per month
2. Netflix subscription - $9.99 per month
3. Popular Mechanics subscription - $1 per month
That's more than $40 a month. I make sure I get my money's worth out of them. (credit:<a href="http://www.flickr.com/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="64" data-vars-position-in-unit="72">Flickr:</a><a href="http://www.flickr.com/people/asiaticleague/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" Asiatic League" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/asiaticleague/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="65" data-vars-position-in-unit="73"> Asiatic League</a>)
17. Ignoring Your Insurance(13 of29)
Open Image ModalBecoming complacent about your insurance can cost you money. Stacy recommends shopping around for new insurance once a year - because when premiums drop or new, cheaper policies are available, no one's going to tell you if you don't ask. Check out our insurance comparison tool to shop for a better rate. (credit:<a href="http://www.flickr.com/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="62" data-vars-position-in-unit="70">Flickr:</a><a href="http://www.flickr.com/people/comedynose/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" comedy_nose" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/comedynose/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="63" data-vars-position-in-unit="71"> comedy_nose</a>)
16. Wasting Utilities(14 of29)
Open Image ModalGrowing up, I got several lectures on leaving the lights on or keeping the front door open and "air conditioning the entire neighborhood." I didn't care too much then because I didn't pay the bill, but now I'm strict with my electricity usage. The result: My summer utility bills rarely top $100. If you've got lights on in a room you're not sitting in, you're wasting money. (credit:<a href="http://www.flickr.com/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="60" data-vars-position-in-unit="68">Flickr:</a><a href="http://www.flickr.com/people/emdot/" target="_blank" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" emdot" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/emdot/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="61" data-vars-position-in-unit="69"> emdot</a>)
15. Dining Out(15 of29)
Open Image Modal14. Morning Lattes(16 of29)
Open Image ModalIn my area, a Grande Caramel Macchiato costs $4.55. Buy one every weekday and you'll spend $22.75 a week, $91 a month, and $1,092 a year. By comparison, a 16 ounce bag of coffee costs me $5.99 and I can make about 82 cups per bag. That is 7 cents per cup, a savings of $4.48 a day. Make your coffee at home and skip the fancy coffee-house drinks. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="55" data-vars-position-in-unit="63">Flickr:</a><a href="http://www.flickr.com/people/kansirnet/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" Kansir" data-vars-item-type="text" data-vars-unit-name="5b9e8006e4b03a1dcc990531" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/kansirnet/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="56" data-vars-position-in-unit="64"> Kansir</a>)
13. Buying Software(17 of29)
Open Image Modal12. Long-Distance Calls(18 of29)
Open Image Modal11. Baggage On Airlines(19 of29)
Open Image Modal10. Full-Priced College Degrees(20 of29)
Open Image Modal9. Credit Reports(21 of29)
Open Image Modal8. Buying Books(22 of29)
Open Image Modal7. Brand Names(23 of29)
Open Image Modal6. 411 Calls(24 of29)
Open Image Modal5. ATM Fees(25 of29)
Open Image Modal4. Credit Card Interest(26 of29)
Open Image Modal3. Bottled Water(27 of29)
Open Image Modal2. Checking Accounts(28 of29)
Open Image Modal1. Cable TV(29 of29)
Open Image Modal