Stanford Students Going Abroad

TRAVEL FINANCES

How much your trip will cost will depend on where you are going, when you are going and how much you want to spend on food, lodging and travel once you arrive.

Some websites which may help estimate travel costs:

Lonely Planet -- which caters to low budget travelers--estimates that in western Europe you can get by—without transportation costs—on 52 to 105 U.S. dollars per day, while in most parts of Argentina, it would be 14 to 17 U.S. dollars per day.

Legal Nomads has a great list of websites that will help you budget your trip depending on where you are going in the world.

Credit and Debit cards:

As in the U.S., credit cards are the most efficient method of payment, as they are able to secure the best exchange rates. Visa and Mastercard are two of the most commonly used cards. You will need to notify your credit card company when and where you will be traveling so charges made abroad do not cause the credit card company to become suspicious and “block” charges and/or “freeze” your account. Also inquire in advance about any service charges that will be levied when using both a credit card and/or debit card abroad.

For travelers to Europe in particular, credit cards are moving rapidly toward the "Chip and PIN" system in which a security chip is embedded in credit cards and the machines read those rather than the magnetic strip on cards held by most Americans. Although MasterCard and VISA will be rolling out these cards for its customers in 2013, U.S. travelers may need to make purchases with live salespeople who can input their credit card info, or they may seek out the few credits card companies in U.S. with this technology for the purpose of travel to Europe (Wells Fargo and JP Morgan Chase do offer "Chip and PIN" cards to their customers at present).

Using cash:

For many activities and in many locations, particularly rural and remote ones, cash is still the preferred and often only medium of exchange. Be cautious about carrying cash and particularly carrying cash in large amounts. Be especially mindful when withdrawing cash from an ATM. Debit cards are the best and most cost effective way of procuring it. ATMs (Mastercard, Visa ) can be located at your travel destinations.

You may get cash at a bank from a credit card, but the interest will be charged (until the sum is paid back). Most banks have limits, however, on the amount of cash you withdraw with your ATM card on a given day, so thinking ahead about your cash needs is essential. Cash in the currency of your destination can be exchanged before departure at most major banks, although some require a day or two to acquire more unusual currencies for their customers. It is not recommended to purchase more than what you absolutely need upon arrival, as exchange rates are more favorable in country. The biggest drawback to cash is that it is easily lost or stolen. It is advisable, therefore, to carry cash in a money belt (available at travel supply stores, luggage stores and airports), underneath your clothing.

Travelers' checks:

Some travelers opt for traveler’s checks, i.e. pre-paid checks that can be redeemed for cash at banks abroad. The advantage of the checks is that if stolen, they cannot be cashed, as they require the signature of the check holder. The disadvantage is that they have a less favorable exchange rate.

Personal checks (along with money orders and cashier’s checks) are not recommended to finance travel as most banks abroad will not cash them and most will need up to three months to clear. If you have an American Express card however, their offices may cash checks for cardholders.

Currency exchange:

Exchanging currencies can be costly as fees are charged for each exchange. Before exchanging currencies it is advisable to check one of the many online sites to see what the buying and selling rate of the currency is. Airports, banks, railway stations, hotels as well as some traveler’s checks companies such as American Express will offer currency exchange services. Fees for the exchange will vary from place to place and usually spots with the most tourists will have the highest services fees and/or the worst rates.

Find out exchange rates and/or convert currencies from any number of websites, for example:

• Oanda
• Xe

 

 

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