Finances While Abroad

A major question you are likely to have is how much money to bring and in what form. Your fees cover all living and travel expenses during the program. You need to cover the following: your travel to and from the country; toiletries and personal expenses, such as haircuts; any independent travel you plan for 3-day weekends or other times; and any medical expenses incurred while abroad that the insurance does not cover up front.

The unit of currency is South Africa is the Rand. See the current exchange rate with USD here. 

The Namibian Dollar is tied to the South African Rand, which is also legal tender in Namibia.

• While most of your course reading materials will be provided, you will need general school supplies.

• Bring US$50 in cash for your house deposit (or US$70 if you plan to rent a cell phone) (exact change appreciated).  This deposit is for the items that CGEE will issue you when you arrive. It will be returned to you if all items are returned in good condition. (The items include, but not limited to, linens, sleeping bags, towels, keys, cellphone, etc.)

• We recommend that you budget at least US$300 – $500 for potential medical expenses. Although the insurance provided by the program may cover any such expenses and make payment directly to the provider, you should have some available funds just in case the doctor or health care facility is not yet a part of the insurer’s network and you need to pay for services up front.

• Students on past programs have spent between $1,000 - $2,000 but you could get by on less or spend a lot more, depending on your habits. This amount allows for some travel during the program, a fairly active social life, occasional calls to home, and the purchase of gifts. If you think you will want to travel more extravagantly or buy more expensive gifts, bring more.  In general, your money can be stretched a little further than in the U.S.

In What Form?

Cash:  The only cash you need to bring is what you might need for the trip over, and a little extra to get you through the first few days. (US$50 – $75 should be fine). Remember, if you plan to travel to Victoria Falls, bring an additional US$200 (alternatively, you can exchange here but will incur fees).

Traveler’s Checks:  If you would like, you can bring some money in traveler’s checks. However, most students find this to be unnecessary.  Another “back-up” money source is the travel AAA/Visa Debit card. The money you put on this card is protected like traveler's checks. Visit your AAA branch to find out more (you don’t have to be a AAA member).

ATM cards:  Plan to get most of your cash from ATM machines. Most major bank ATM cards will allow you to withdraw cash from your U.S. checking or savings account, and will give you the money in local currency. Family members can also deposit money into your U.S. bank account, and you can withdraw it from an ATM. It's good to notify your bank that you will be using your card in Namibia and South Africa ahead of time so that they don’t decline the charge.

Credit Cards: Many shops accept major credit cards such as Visa, MasterCard, and (less frequently) American Express, and banks provide cash advance services in the local currency.  Again, it's good to notify the issuing bank that you will be using the card in Namibia and South Africa so that they don’t decline the charge.

Money Transfers:  Members of your family can wire money to you in the form of a Money Gram. A wire through Money Gram can be done entirely on-line using a credit card. The sender will just need to create an account on MoneyGram's website. Wire transfers can also be done using Thomas Cook or the Bureau de Change. Money should be directed to you in Windhoek, Namibia.  Upon completing the wire, the sender should receive an eight digit reference number. In order to collect the money, you will need to bring your passport and the eight digit reference number.

You likely will need to pay for some medical expenses yourself and then file a claim for reimbursement, and you will have to pay for transportation to appointments with doctors and/or therapists. Given this, the amount of money you will need depends on your health while abroad and your lifestyle:  the number and cost of gifts and souvenirs you purchase, how much you like to go out to the movies or go dancing in clubs, and how much additional travel you plan, as well as how simply or extravagantly you do it. The week after the program ends offers an excellent opportunity to travel, perhaps with family or friends who may be able to visit, or with other program participants.

YOU MUST HAVE AT LEAST $300 USD ON HAND FOR MEDICAL EXPENSES, including medicines for colds, allergies, and other normal, minor illnesses.

PLEASE CONSIDER BUYING A REFUNDABLE PLANE TICKET IF YOU THINK YOU MAY WANT TO TRAVEL AFTER THE SEMESTER, OR PLAN TO BUY A TICKET WITH SOME TIME AFTER THE SEMESTER ENDS. 

GIVEN COVID, IT IS ALSO WISE TO BUY A PLANE TICKET WITH CHANGEABLE DATES.

CGEE recommends bringing both cash in U.S. dollars and an ATM card with your PIN number so that you can withdraw money regularly from an ATM. Look around to find the best exchange rate. Note that most US banks charge a flat fee to withdraw money from an ATM not associated with their bank. Additionally, some ATMs offer bad exchange rates, and you should click decline exchange rate on ATMs that offer poor exchange rates to receive your bank's exchange rate. Read more about using foreign ATMs here or here. 

Most students prefer using their ATM cards to carrying large amounts of cash. If you’d like to bring a Visa card or MasterCard, you will find that many places accept credit cards. You may also withdraw money from an ATM and get cash advances on credit cards, although this can be very costly. We strongly urge you to bring an ATM card and to use money belts or body pouches for the bulk of your money while traveling. Check with your bank to see if & what they will change your for foreign transaction fees. Additionally, when paying with card, if you see an option to pay in local currency or USD, always select the local currency. This way, your bank will set the exchange rate instead of the vender, which is almost always better then the vender setting the exchange rate. 

If you want a Venmo or Cashapp alternative while traveling, we recommend either PayPal or Wise. Get your first transfer fee-free with Wise using this link: https://wise.com/invite/ata/arianamelissan. Tipping at restaurants is expected, but only at 10-15% for typical service. Often tipping will be expected in other situations, such as when someone helps with a bag, for washing a car window, singing in a restaurant, or for helping with parking.

Fraud can happen anywhere, but foreigners may be especially susceptible due to not mastering exchange rates, unfamiliarity with tender, and the tendency to spend more money while traveling. Here are a few tips for avoiding scams and fraud, and what to do if you fall victim to fraud.

• Fake bills - ALWAYS check your bills before leaving the bank - count them, and inspect them for anything suspect. DO NOT leave the bank with fake bills, as it is much more difficult to turn in fake bills after leaving the bank premises. If you get fake bills, or what you expect are fake bills, go talk to a teller, and ask them to review the bank footage in necessary. If you do leave the bank with fake bills and do not realize until later, return to the bank. Likely, they will not help you, but it is a necessary step your bank wants to see. Then, call your bank, and explain the situation.

• ATM does not dispense money - If an ATM does not dispense money, talk to the store owner or bank teller. If they do not help, immediately call your banks fraud line to explain the situation. Save the fraud number of your bank in your phone.

• Lost/Stolen cards - most robberies do not happen in a dramatic way - rather your wallet may be stolen without your knowledge, or you may accidently leave it in an Uber and get it back without your cards. If that happens, IMMEDIATELY  call your bank and cancel your cards. It is important to have someone in the US who can help you withdraw money in the event your information is stolen, or better yet, only carry one card at a time so only one card can be stolen at a time. PLEASE CARE FOR YOUR BELONGINGS - if you lose all your cards at the start of the semester, you might be plagued by the annoyance of not having a card for a long time.

• Safe ATMs - the CGEE staff will direct you to ATMs that are safe to use.

Money can be the source of many conflicts during study abroad. We ask that you be conscious of differing financial situations while making plans with your new friends. Try to mix activities that are more expensive with activities that are less expensive.

Consider the following questions:

1) How much can I afford to spend studying abroad? What sacrifices may I have to make to spend what I want to spend while abroad?

2) How will I make sure I am sticking to my budget while I am abroad?

3) How will I talk to my friends about what I can and cannot afford while abroad? How will I be inclusive to students with different class backgrounds in my semester program when planning activities?

Check out the following comic to explore a little more about activity/trip planning, money, and friendships. https://thewokesalaryman.com/2023/04/06/grad-trip/