Trifter

When you are visiting another country, it becomes very important to protect and handle your money. Here are a few tips and tricks that will help you to keep your money safe and liquid, and to avoid rip-offs.

• Have a good idea of what the exchange rate is. Rates will fluctuate daily by a small amount, but as long as you have a rounded average in your head you can determine if prices in the other currency are fair. For example, if you are an American visiting Mexico and the current exchange rate is 10 pesos to a US dollar, you can keep in mind that 100 pesos are $10, 1000 are $100 and so on. If you don’t have a head for math, make a little cheat sheet that shows the foreign currency equivalents for $1, $5, $10 and $20. This should help you to calculate at a glance if that tee shirt is a bargain or a rip-off.
• Avoid carrying cash! There are many ways to have spending ability without the dangers of carrying money around. Almost every major city on the globe accepts credit and debit cards now, as well as traveler’s checks. If you have need of local currency you can usually locate an ATM that dispenses it. The major advantage of using plastic and local ATMs is that you won’t have to pay a commission to an exchange house to convert your native currency to the local one.
• Be aware that, with some exceptions, most items cost about the same no matter what the currency exchange is. Just because the exchange rate is 3 to 1, this doesn’t mean that you will automatically triple your buying power – it means that a $1 candy bar will cost 3 Reais or Drachmas or whatever the local currency is.
• Certain types or classes of items will be a bargain compared to prices at home. If you have a friend who resides in the country that you are visiting, it is a good idea to enquire on the local prices of a few sample items, such as clothing, electronics and jewelry. Some goods can be purchased at an advantage. For example, electronic goods are usually cheaper in the United States than in South America or Europe. Silver jewelry tends to be cheaper in Mexico than anywhere else. Clothing bargains can be found in Eastern European countries.
• Beware of people who approach you on the street to exchange currency. The majority of these people are passing counterfeit currency or hoping to make a profit from your confusion about the exchange rate. If you must convert your currency for a local one, always use a bank or official exchange house.
• If you find that you have an abundance of local coins, be sure to spend them before you go home. Banks will not convert foreign coins; so unless you intend to keep the coins as a souvenir, spend them on something. Try to give exact change when making a purchase to keep your coin level down.
• If you end up returning home with a significant amount of foreign paper currency, take it to your bank. They can send it to your account in a special deposit envelope. The currency will usually take a few days to process, and then it will be deposited into your bank account.