Money Tips and Taking Money

It is a good idea to add the name of a parent or close relative to your bank accounts, in order to facilitate paying bills, depositing funds, etc.  It is also advisable to add this person's name to your credit card account so that they can easily pursue billing questions. Make sure bills are taken care of before you leave and that credit cards will not expire while you are abroad. 

Forms of Payment

Traveler's Checks
Traveler's Checks are one of the safest and most convenient ways to carry money overseas. They can easily be cashed for local currency in every country; moreover, lost or stolen checks can be reported and replaced. Traveler's Checks are available through most banks, AAA, American Express, credit unions, as well as other companies. You may buy them in predetermined amounts, clearly printed on the face of each check for a fee of 1-2% (fees vary and may be waived if you are a member). You can cash traveler's checks in U.S. currency abroad in banks for a good exchange rate. Exchange rates will depend on the amount of commission charged. The worst exchange rates are often through hotels.  

Purchasing traveler's checks in a foreign country is preferable; this will keep you from losing money due to fluctuating exchange rates. At the Fifth Third Bank International Office in downtown Grand Rapids, you can purchase Traveler's checks in British, Swiss, Canadian, and Japanese currencies.  If you are visiting several countries, buy traveler's checks in U.S. currency for a better exchange rate. 

Most international airports offer a place for visitors to exchange money. There are generally ATM machines that will disburse funds in the local currency, as well as exchange bureaus that service in-coming visitors.  In some developing countries, this service may not be available. 

Tip: Personal checks drawn on your U.S bank account will not be accepted abroad. Do not expect to use them as a method for purchases or other services.  The exceptions may be for an American Express cardholder. At several American Express offices abroad, cardholders may be able to cash a U.S. check for up to $1,000. 

Cash
It is a good idea to carry a minimum of $100 in U.S. currency for incidental expenses when traveling to your destination. Once you arrive in your destination, you may want to put it away until you are ready to return home. Currency packs containing an assortment of coins and currency for the countries you plan to visit may be obtained from U.S. banks, currency dealers, and international airport terminals. Local money on hand upon arrival is useful for tips, cab or bus fares and minor purchases. Black market currency exchange transactions are unwise, and in most countries, illegal. 

ATM Cards
If you have an ATM card, you may be able to use your card overseas and get cash easily at the favorable inter-bank rate. Contact your bank to find out if their ATM system has international facilities and the locations of the machines. Be sure to find out if there is a service charge involved. ATM cards for savings accounts may not work when used abroad. It is advisable to transfer money into your checking account before departure if you wish to have access to these funds. As in the United States, you will need to find machines compatible with your card (i.e. Pulse, Cirrus, etc.). You will not be able to obtain balance information from an ATM machine while abroad. Many individuals utilize on-line services to check remaining balances.

Tip: It is important that you not rely on only one source for money. If you rely on your debit card and it is lost, stolen or demagnetized, it may be several days before a replacement card arrives. It is always best to have options!

Credit Cards
Credit Cards are invaluable when traveling abroad. They can cover hospital entrance fees, a plane ticket home, or other kinds of emergency expenses. Use your credit card for larger purchases to ensure a good exchange rate where credit cards are accepted, Visa and MasterCard are accepted universally; American Express is accepted in fewer situations. Keep in mind that smaller shops may not accept a credit card as a form of payment. You may also have difficulty using a credit card outside of major cities. It is always best to have options for making purchases.

It is recommended that you contact your credit card company and notify them of your sojourn abroad. In some cases, when an international transaction takes place, the credit card company immediately responds to get verification that purchases are being made by the card owner. There have been cases where credit card companies have blocked the card for purchase transactions until verification has been made. In order to avoid any inconveniences, contact the company in advance.

Note: In many developing countries or countries with a transitioning economy, credit cards and ATM cards may be difficult to use due to the lack of facilities.  It is very important that you research your destination for information on the availability of these services. You can get more information on whether or not your host country has ATMs on your network by contacting Mastercard or Visa

Money Transfers
If your hometown bank has an overseas affiliate, a transfer can be made quite easily. The procedure may take a few days, so plan accordingly. Money can also be cabled (a bit more expensively) through American Express or Western Union. Contact Western Union for more information.

Lost or Stolen Money
Before you depart for your study abroad program, make sure you have all toll-free numbers for your credit card company, banks, and the company that issued your traveler's checks. In the event that your cards are lost or stolen, you will need these numbers to contact the issuing company for instructions on how to replace them and stop future transactions. 

Tip: Make photocopies of all important documents, credit cards, I.D. cards, insurance information, etc. and leave a copy at home with a family member that agrees to help you while you are abroad. Provide all of the information in a large envelope or folder in order to ensure the information is organized and stays together. You will also want to keep a copy of these documents on you in a location other than with the originals. 

Budgeting Ideas

Budgeting while studying abroad can be a difficult challenge for many students.  Keeping yourself organized and sticking to a budget can really make a difference in your overall study abroad experience. Students who do not budget well are likely to spend a good deal of time concerned about not having enough funds, instead of enjoying all of the opportunities that study abroad can offer. It is recommended that you spend some time figuring out a budget that would work best for you, make a plan, and stick to it. You will need to consider costs associated with pre-tdeparture, with travel expenses, and with expenses that you will incur on a daily basis while in the host country. The following are some suggestions you may want to consider:

1) Plan to spend more money during the first couple of weeks in your host country.  You may need to spend money on basic things in order to get settled in.  Consider whether or not you will have access to pillows, blankets,  sheets, towels, toiletries, and other such items.  If not, you will either need to bring them with you or purchase them while you are there.

2) Consider the funding that you will have available for in-country/local travel, food (if not provided through your program), laundry, excursions, and other miscellaneous things. Work out on average how much you have to spend each week. Remember that you will spend more the first couple of weeks. You will need to keep yourself on track by reducing the amount you spend after you have settled in. 

3) Be sure to create a realistic budget. For example, if you are a person who likes to eat out on a regular basis instead of making your meals at home, then you may want to consider budgeting more for food costs to accommodate your personal spending habits. 

4) Bring a few empty envelopes with you. Consider labeling them as follows:
              - Current receipts/transactions
              - Prior transactions
              - Excursions/independent trips
              - Gifts

Keep all of your receipts and lists of transactions in the appropriate envelope in order to monitor spending.

Currency conversion

Become familiar with the currency in the host country. Remember the exchange rates may fluctuate on a regular basis. The following websites will assist you in determining the rate of exchange for the current day and for preceding days. 

http://www.xe.com/ucc
http://www.oanda.com/convert/classic
http://finance.yahoo.com/m3
http://www.x-rates.com/calculator.html