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

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 (Carte Bleue), and Mastercard (Eurocard) are the most widely accepted in major cities. Often, credit card users receive a more favorable rate of exchange with credit cards since the corporate rate is often better than the individual exchange rate. The card must be in your name. Even if you do not intend to use a credit card for daily purchases, it can be important in an emergency. Be advised, however, that most low budget establishments and many small, local businesses may not accept credit cards. Guard your credit card as you would your cash. Remember to have a responsible person manage 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. 

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.

Please also check with your credit card company to ensure you are bring a card that has no international transaction fees.

Increasingly, this is the best way to go. You can generally get the best exchange rate, and many ATM cards double as credit cards. Some ATM card systems (such as CIRRUS and PLUS) can be used in major cities abroad to withdraw money from your home bank account. 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. 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.

You can set up a High Yield Investor Checking account with Charles Schwab Bank. The Schwab account does not require a minimum balance or charge a foreign currency conversion fee. Additionally, Schwab charges no ATM fees and may reimburse fees you are charged by a foreign bank for ATM use.

Notes on Schwab Accounts:

• • Schwab has a daily deposit limit. Your daily deposit limit amount is clearly indicated on the Deposit screen, just under the Amount field.

    • If a per diem amount (for a faculty-led program) is received as a check and exceeds the daily deposit limit, you may:

      • Mail the check to your local Schwab branch

      • Drop the check off at one of their branches, which are all located in the southern and western metro

      • Deposit the check into a different account and then transfer the money from that account to your Schwab account

  • Schwab requires a minimum balance of $100 before they will send out a physical card.

  • Bethel doesn't manage any kind of account management or relationship with Schwab, so you may reach out to a Schwab representative with any questions.

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: 

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

• Purchase a cashier’s check in U.S. dollars 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. 

• Wire the money from a U.S. bank to a bank abroad and it will arrive within 48 hours. The student picks up the money from the receiving bank. A wire transfer costs about $30. 

• Send money overseas via American Express Money gram, an immediate cash transfer. Neither sender nor receiver need to have an AMEX card to use this service. Call 1.800.543.4080 to find the nearest location that handles money grams. The fee varies according to the amount sent. 

• In case of extreme financial emergency, the local bank can request the international bank or an American Express office to send funds by telex to one of their affiliated banks or offices. Cabling or telexing money usually involves a hefty service charge. PayPal and Venmo remain viable options to transfer funds.

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, eating at the cafeteria 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. Likewise, some of the above listed items may be included in your program package, and thus would not be an expense to you. Or your program may highlight different 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.