Money tips for traveling abroad
A few weeks back, Kathy wrote a great post about alternatives to taking a European vacation. Well, if in these last few weeks of summer you're taking an actual European vacation—or perhaps preparing for a semester abroad—one thing you'll need to think about before handing over your passport at customs is money.
I was born in Germany (my dad was in the Army), made a trip to the United Kingdom in college, and spent two months backpacking around Europe after my first job. So other than my time as an infant, I've had some experience spending money overseas. Here are a few tips that might help.
Buy some foreign currency before you leave so you don't have to pay high fees and lousy exchange rates 
at an airport currency window. Most banks can sell foreign currency with a few days' notice. Ask for some in small denominations—when you arrive at your destination desperate for a snack and a taxi, you'll be glad you did!
In addition to foreign currency, consider taking traveler's checks . You can buy them either in the currency of your destination or in U.S. dollars. If you need to cash U.S. dollar traveler's checks abroad, you are more likely to receive the best exchange rate at a bank. Fees usually apply per check cashed, so it may be in your interest to cash the higher denominations.
Use your credit card or debit card for the most favorable exchange rate. Just be sure to notify your bank of your travel plans before you leave—otherwise, your accounts could be frozen as a precaution against fraud (certainly not what you want when you've been standing in line for an hour to buy tickets at the Louvre ). And if you plan to use an ATM, remember that cash at foreign ATMs is dispensed in the local currency and debited from your account in U.S. dollars.
Basically, it all comes down to diversifying your travel money portfolio. 
A combination of foreign currency, traveler's checks, and plastic will give you the most flexibility. In my next post, I'll focus on how to keep your money safe when you're abroad.
P.S.: Want to know how much the U.S. dollar is worth in other countries? Check out our handy currency calculator.
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Comments (9)
Found in Banking, Budgeting, Credit cards, Currency, Debit cards, Exchange rates, Financial education, Paying, Preparing, Student loans, Travel, Traveler's checks, Vacation, Wells Fargo Bank
Comments
I've heard that there's an exchange conversion fee when you use either debit cards or credit cards. Is that true, and if so, is one of them a better deal? Thanks!
Posted by: Gabriel | August 20, 2007 02:10 PM
How many more people need help ask about it?
Posted by: yvonne | August 21, 2007 11:35 AM
Hey Gabriel, sounds like you're doing your homework! You're right; a conversion fee generally applies for foreign purchases made with plastic. Wells Fargo charges the same foreign currency conversion fee (3%) on purchases made with either a debit card or credit card, so one isn't a "better deal" than the other. However, I did a bit of research on bankrate.com and found that other financial institutions' fees do vary. Some don't charge conversion fees at all. Bottom line is that you'll want to shop around for the card that best meets your needs--both at home and abroad.
Thanks for the smart question. And, if you're planning a trip, bon voyage!
Posted by: Staci Schiller | August 21, 2007 03:51 PM
yvonne, I'm not sure--but I hope folks feel comfortable asking their questions here! If you need help, let us know.
Posted by: Staci Schiller | August 21, 2007 04:16 PM
Interesting web site. Do you actually have any real information, like the terms of the Stafford Loans, repayment rebates, and origination fees? Unless I missed an obvious link the website is looking pretty useless.
Posted by: Anonymous | August 21, 2007 07:52 PM
Anonymous, thanks for the candid feedback. We usually avoid getting into detailed student loan product information here on the Student LoanDown because that's already available at wellsfargo.com/student. Also, we want the blog to be a forum where people can ask questions and offer their opinions, like you did--I think of it as a supplement to our existing Web site.
In the meantime, here are a couple of suggestions to get you the info you need:
Go to wellsfargo.com/student, and in the "Undergraduate Loans" section, click on the link that says "Compare loans for students or their parents." When you get to that page, click on the "Federal Stafford Loan" link in the first comparison box. That will take you to a page outlining all the terms and conditions for Wells Fargo's Federal Stafford Loan. There's also a link on that page that says "Click here to see how the savings add up," and that will take you to the repayment benefits for all Wells Fargo student loans.
Another option is to do a search here on the blog. If you type "Stafford" into the Search box on the right-hand side, the search will return several posts that reference Federal Stafford Loans (many with direct links to the product pages on wellsfargo.com/student). Hopefully the info in those posts (along with the insights of other blog readers) will help answer any questions you have about the loans. If not, ask us here.
Anyone else agree with Anonymous? Are we not spending enough time on the nitty-gritty of student loan terms, fees, and benefits?
Posted by: Staci Schiller | August 22, 2007 02:45 PM
I am planning a trip to new zealand in jan. and i am having a hard time choosing how i should take my currency. i read your article but i was wondering is there any way to take a prepaid traveling card for my trip.i also would like to know if what does wells fargo offer in the cost of exchanging money into new zealand dollars.
Posted by: Deja | December 28, 2007 03:22 PM
Deja, I'm completely jealous of your trip to New Zealand--that's somewhere I've always wanted to go!
There is a way to take a prepaid card. Wells Fargo offers a Visa Gift Card, which can be used internationally at merchants that accept Visa debit cards. Visa will convert the local currency amount of the transaction to US dollars, but keep in mind that foreign currency conversion fees most likely will still apply.
Wells Fargo foreign exchange services are available at foreignexchangeservices.com. To exchange US Dollars (USD) into New Zealand Dollars (NZD), visit a Wells Fargo international teller site (you can use the search feature to find a location near you) or order currency right online.
BTW, I just checked the conversion rate today using the currency calculator, and it's 0.8074. That means you'd get 61.92 NZD for 50 USD--not bad indeed!
Hope you have an amazing trip!
Posted by: Staci Schiller | January 3, 2008 12:58 PM
Very nice.
Posted by: jamili | August 8, 2008 10:56 AM