Traveling can be quite expensive if you are not careful. This is precisely the reason why you have to make the most of your money.
You may not realize it, but you are actually paying a small premium every time you exchange foreign currency. While this is unavoidable, you can still be smart about it. You just need to make sure that you choose the right method so that you can maximize your money’s worth.
This article runs down the available foreign exchange options for travelers.
Using a Credit Card
The best thing about using credit cards is that they will always give you the best exchange rates. However, there is also a major drawback, as they cannot be used everywhere. This is because, in some places, businesses only accept cash.
Using the ATM
Using your debit card to withdraw cash is also another smart option. It is also relatively cheap as ATMs offer competitive exchange rates. There is also no problem in terms of convenience, as you won’t have any trouble finding an ATM anywhere. You will also have more saving opportunities if you also happen to find a bank that refunds all ATM fees.
Currency Exchange Booth
Perhaps one of the worst options for exchanging money, we cannot but recommend that you stay away from currency exchange booths. Not only do they offer terrible rates, but they also often add a service charge or a commission on top of that. These places are often found at airports and bus terminals.
Exchanging with Fellow Travelers
This is perhaps the cheapest way to exchange foreign currency. Oftentimes, you can do this once you are leaving or entering a country. In these instances, you’ll find travelers going the other direction. Just chat them up and trade currencies afterward. With this method, there are no fees involved so you can get the most of your money.
However, the only trouble with this is that this is not something you can do all of the time.
Money matters especially if you are traveling abroad. You have to be careful, otherwise, your expenses will simply pile up without you even realizing it. So, make sure that you make the most of your funds. Be wary of scams, do not overspend, and always know the exchange rate for the country you are traveling to. Always keep these things in mind, and remember the tips laid out in this article.