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 Mexico; your required class texts, which you can rent (for between US $10 & US $40) after arrival in Mexico; toiletries and personal expenses, such as haircuts; any independent travel you plan for weekends or other times; and any medical expenses incurred while in Mexico that the insurance does not cover up front.

The unit of currency is the peso. The exchange rate (as February 2024) is approximately MXN $16.06 pesos to US $1. However, the rate fluctuates.

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.

In the past, most students have spent between US $20 USD and $100 USD per week. How much you bring obviously depends upon how long you will be here, your own spending patterns and financial capabilities. YOU MUST HAVE AT LEAST $100 USD ON HAND FOR MEDICAL EXPENSES, including medicines for motion sickness during travel, colds, allergies, and other normal, minor illnesses.

You will have the opportunity to buy crafts and jewelry from several artisan groups, including women’s cooperatives, associated with some of our guest speakers and visits. You will find that because some items are less expensive in Mexico, you may feel rich and spend freely and quickly. Beware of this tendency!  Your money will disappear rapidly if you are not careful!

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

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

Please fill out this budget for yourself to understand how much money to have available while studying abroad:

1. How often do you like to go out to eat or drink? 

a) Once or twice during my stay, $20 USD  b) Once or twice a week, $60 USD c) Multiple times a week, $200 USD

2. Do you plan to travel on your own during the program?

a) Not at all, $0 USD  b) One weekend away, $60 USD, c) Every weekend or a week at the end of my program, $300-$400 USD

3. How many gifts/clothes/trinkets do you plan to buy?

a) Just a couple things for my friends at home, $30 USD, b) I am doing my Christmas shopping in Mexico, $150 - $250 USD

4. Do you have a pre-existing condition that requires medicine (allergies, susceptibility to colds, depression, anxiety, birth control, diabetes, HRT)?

a. Nope!, $0 USD  

b. Yes, but my insurance covers my medicine and I am bringing a full supply from the US, $0 USD c) Yes, and I already bought a full supply in the US or plan to buy it in Mexico (and have checked if it is available) $50-$200 USD

Add up your answers to these questions to find out how much money you will need to have available, and then reflect on the following questions: 

• 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?

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

• 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 program when planning activities?

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. There are several exchange stores in the center of Cuernavaca (many are located on the street called Lerdo de Tejada). They offer exchange rates between $16.30 -$17.00 pesos (approximately MXN $20 pesos) per US dollar. Look around to find the best exchange rate. If you plan to withdraw a larger amount of cash, we recommend the banks in Plaza Laurel (Manuel Ávila Camacho 16, San Jeronimo, 62170 Cuernavaca, Mor.). 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 (like $16.90 pesos to the dollar), 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, and read more about Using Mexican & Foreign Bank Cards at ATMs in Mexico here. 

ATMs are common in Cuernavaca and throughout Mexico. 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 of the fancier stores, hotels and restaurants accept credit cards. Credit cards can often be used to pay for health services, especially in clinics and hospitals. You may also withdraw money from an ATM and get cash advances on credit cards in all Mexican cities, 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. International ATM machines are available in cities all over Mexico. 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 pesos or USD, always select pesos. 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. 

Many Mexican businesses, and friends you might meet, will accept a transferencia in addition to credit card or cash. Think of this like the Mexican Venmo or CashApp (which are practically unknown in Mexico). The app with the least fees and best exchange rates to make transfers to Mexican bank accounts from American bank accounts is called Wise. Get your first transfer fee-free using this link: https://wise.com/invite/ata/arianamelissan. To make a transfer, you will need the CLABE number and the name of the recipient - these will always be provided. Sometimes apps from the US also ask for address and email. Usually you can use your own email and the address of Casa Augsburg if this information is not provided.

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. In these situations, between 5 and 10 pesos is acceptable. Haggaling, or the practice of negotiating a price for goods an services, is common in Mexico. We ask that you do not haggle when we visit collectives or cooperatives that we partner with, as they will give you a fair price. In the street, you will begin to develop a sense of what might be "gringo" pricing. You may offer a lower price, but the seller may or may not take it. Sometimes, the best way to know if a price can be lowered is to walk away. If the price can be lowered, this is often when it is. 

Fraud can happen anywhere, but foreigners may be especially susceptible due to not mastering exchange rates, unfamiliarity with Mexican pesos, 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 - Below you will find a photo of both fake and real bills given to our students from an ATM. Can you tell the difference? The fake bills have a notably more "printer paper" like feel, and tear more easily in ATM machines. 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.

• What to do if the 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, IMMEADITLY 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. It is difficult to mail cards to Mexico so Mexico so 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, but are current preference are the banks in this plaza: Plaza Laurel, Manuel Ávila Camacho 16, San Jeronimo, 62170 Cuernavaca, Morelos

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, or enjoy spending time together at each others homestays houses. 

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/