Smart Spending Tips for Study Abroad Students

You're not alone if you are unsure about the best way to spend money overseas. Even the most experienced visitors may find handling cash withdrawals, currency exchange, and foreign transaction costs challenging. Whether you're studying abroad in Halifax or Boston, students can stretch their money on their next academic adventure in a few ways. We have compiled the most effective strategies to ensure you receive the most value for your money during an extended international visit.

Using Cash

Cash is accepted everywhere, making it one of the easiest ways to complete purchases. However, getting and using currency requires some planning.

Locate a Fair Exchange Rate

Although exchanging your money before leaving the airport is undoubtedly easy, it's frequently one of the more costly places to do it when traveling overseas. The currency rate you'll receive at your destination airport is among the least advantageous. Ask locals or other study abroad students who are already there for locations that have better conversion rates. Your hotel may also offer a reasonable exchange rate upon arrival.

If you need cash immediately, consider exchanging currency at your local bank or credit union before you leave for a better rate. Just be aware that banks charge for this service, so check if they have the foreign currency and the conversion rate.

Always Utilize the ATM of a Nearby Bank

Use ATMs operated by established banks for cash withdrawals at your destination. Non-bank ATMs, often found in stores or tourist areas, usually have higher fees and worse conversion rates and may increase theft risk.

ATM cash withdrawals are often the best choice for daily funding, though transaction fees may apply. Some banks charge a fixed fee per withdrawal, while others may not or may reimburse fees from different banks. Always reject the ATM's currency conversion offer, just like with credit cards. Refusing it won't cancel the transaction. Your bank will set the exchange rate at the time of withdrawal.

Trade Higher Amounts of Money

You usually receive a better exchange rate with larger notes and sums. If traveling in a group, consider pooling your money and exchanging it together. This simplifies dividing the new currency, and everyone can benefit from a better exchange deal.

Use Local Cash Whenever Possible

While not applicable everywhere, some establishments abroad allow visitors to use their home currency. However, salespeople often fail to mention that the poor exchange rate can inflate prices by about 20%. As a result, while using your home currency may seem convenient, it is usually not the most cost-effective choice.

Credit Cards

Credit cards are helpful for overseas spending due to their security and trackability. Before you travel, check with your bank to ensure your card is valid and accepted at your destination. Also, notify your bank of your travel plans to prevent them from mistakenly canceling your account due to foreign transactions.

At Checkout, Choose the Local Currency

Some card terminals offer the choice to pay in your home currency or the local currency when purchasing. Always choose the local currency, as failing to do so may result in an inflated exchange rate. By selecting the local currency, your bank will determine the conversion rate, which is typically more favorable.

Document Your Cards

Having your credit, debit, and insurance cards go missing is the worst possible way to spoil an extended trip, so snap a photo of everything in your wallet, including the front and back, so you can locate all the numbers to contact in an emergency. It's a great idea to keep a copy on your phone—or even better, in the cloud—along with pictures of your passport and other important documents!

Get a Credit Card with Travel Rewards

Isn't it great to think that everything you spend on your overseas trip is helping you earn points to lower the cost of your next adventure? Plenty of cards are made just for travel enthusiasts, usually offering points on travel-related purchases. Among many other redemption choices, you may use your accrued points to plan future travel or transfer them to a hotel or airline partner; make sure they are valid in the nation where you will be traveling.

Consider Using Prepaid Travel Cards

If you cannot get a reliable travel rewards card, this can be the most excellent option for spending money overseas. When you use a travel card like Wise, you can pay, send, and get cash in the local currency at the real exchange rate, with no fee. These cards are excellent because they help keep overspending in check and avoid hefty foreign transactions or exchange fees.

Book a consultation with an SAF counselor today for more information on spending money overseas and to learn about study abroad opportunities.