Money and Budgeting Abroad

It is helpful (but not necessary) to have a small amount of the host country currency with you upon arrival abroad. Having foreign currency on hand will eliminate the need to stand in line at the airport bank or be stranded at the airport if the bank there is closed. Exchange most of your money abroad – you will get a better exchange rate.

Options for obtaining foreign currency:

• Check with your bank to find out if the currency you need is available in the U.S. and what fees they charge for exchanges (these fees can be high). Be sure to allow about two weeks for this process. 

  • You can get a cash advance at a bank and at some ATM machines using some credit cards, but you will be charged interest continually until you pay back the advance. To use a credit card to withdraw cash from an ATM machine you will need a PIN number assigned to your account. Check with your bank or credit card company for details.

• You will likely be able to change money at the international airport at which you arrive, but be aware that exchange rates at international airports can be extremely high.

Usually the best place to change money overseas is in a local bank. Daily exchange rates are posted in the window so you can do some comparison beforehand. You may also change money at train stations, airports, and sometimes in hotels, restaurants, and travel agencies – but the rates in these places are often less favorable than at the bank. Try to anticipate how much currency you will need for a certain amount of time or for a participating country, as each time you convert, you pay a service charge.

Online currency converter: 

www.xe.com/ucc/

https://www1.oanda.com/currency/converter/

• Several U.S. credit cards are accepted in many parts of the world. American Express, Visa, and Mastercard are the most widely accepted in major cities. 

• The card must be in your name. 

• Credit card users typically receive a more favorable rate of exchange than cash users since the corporate rate is often better than the individual exchange rate. Be advised, however, that most low-budget establishments and many small, local businesses may not accept credit cards.

  • If you are asked whether you would like to pay in USD or local currency, always choose local currency as exchange rates are usually better.

• Even if you do not intend to use a credit card for daily purchases, it can be important in an emergency. Guard your credit card as you would your cash. 

• Remember to continue managing your monthly credit card statements during your time abroad. In addition, be sure to keep all receipts of purchases using your card, and cancel your credit card immediately if lost or stolen. 

• IMPORTANT: Check with your credit card company to ensure you are bringing a card that has no international transaction fees.

• We also recommend bringing a backup credit card in case your main card is lost, stolen, or otherwise rendered unusable.

You will want to bring an ATM or debit card, and a backup, abroad in order to withdraw cash onsite. All you need is your card, your PIN number, and a list of ATM machines in your host country. Your bank can supply you with such a list, or you can search online. Remember your PIN number. 

Many European ATMs take only four-digit PIN numbers. If yours is longer, ask for a four-digit one before you leave. Also, some foreign keypads have only numbers. If you have letters in your PIN number, substitute the number you would use to dial that letter on an American telephone.

Check with your bank what they may charge for ATM fees before you go. You could consider setting up a Schwab Bank Investor Checking account. Charles Schwab does not charge ATM fees and offers unlimited reimbursement for fees charged by other banks' ATMs worldwide when using this account. Per their website:

"Unlimited ATM fee rebates only apply to cash withdrawals using the Schwab Bank Visa Platinum Debit Card wherever it is accepted.

ATM fee rebates do not include fees imposed by merchants or ATM operators for POS transactions, or fees for stamp purchases, balance inquiries, non-local ATM currency withdrawal fees (referred to as dynamic currency conversion fees), or any transaction other than an ATM cash withdrawal from your Schwab Bank account."

Ideally, you will not need to have your parents send money, but discuss this process with them before you leave, just in case. If money must be sent from home, there are several methods that you may use: 

• Send money using a service such as Venmo, PayPal, or Zelle.

• Arrange before departure with your bank to allow your parents to make deposits into your credit/debit card account while you are away. 

• Send money via a wire transfer. It should arrive within 48-72 hours. A wire transfer costs about $35-$50.

• Purchase a cashier’s check in USD drawn on a major U.S. bank and send it through the mail. 

• Purchase a cashier’s check in foreign currency drawn on a bank in the host city, or a major city close to where the student is located and send it through the mail. 

Here are some points of consideration to help you estimate your budget abroad: 

• Personal spending habits (how spendy are you normally?) 

• How much would you like to spend on weekly/monthly entertainment? (Consider meals out, theatre, and other social events.) 

• How much independent travel would you like to do (travel which is  above and beyond the travel excursions included in your program package)? 

• What are your travel/transportation/entertainment standards? (Which will you choose between: staying in hostels vs. hotels, buses vs. taxis/Ubers, cooking at home vs. eating out, etc.)

• What would you like to come home with? (considering gifts and personal souvenirs)

Some typical things that students spend their money on include: 

-books 

-transportation 

-personal hygiene products 

-food (above and beyond what your program provides) 

-entertainment 

-independent travel 

-gifts and souvenirs 

Again your best bet will be to check with your program provider and/or faculty leader; they may be able to give you a general idea of what past students have spent their money on. Your program may also highlight spending necessities specific to your destination not listed above. 

Keep good financial records. It is a good idea to keep a weekly (and sometimes daily) budget. Individual spending habits and costs of living vary greatly, so it is difficult to say exactly how much it will cost for your time abroad. You can obtain an estimate, however, by checking guidebooks and by asking past participants of your program.