How much cash you bringing?: A Guide to exchanging currency on vacation.

I personally use my card when I travel, but I have been on my fair share of trips where having a card was an inconvenience. This is why I now travel with 40% of my budget in cash and 60% on my cards. However, I always run into issues at the last minute because I do not grab cash before I leave. Luckily for me, I don't worry too much, because I will usually just find an ATM. But for those who like to have all cash, exchanging currency before and during a trip is a task if you do not know where to begin. You do not want fees to eat up your money before you even get to access it. With this being said, these are some of the WORST and BEST places to exchange currency when traveling abroad, in my experience.

My ranking goes as follows:

Worst- Airport.

Think about it. The airport is usually the first time you realize, "I don't have any cash in this currency on me." You proceed to go through customs intending on exchanging money as soon as it is available and, voila! A currency exchange booth You rush over there ready to hand over your home country's currency, ready to get whatever the equivalent currency of that country is. Then you get to your room, pull out your currency conversion app, and realize the rate in the app is not the one you received at the kiosk. So, while you were able to get your money conveniently, you feel robbed of a few dollars. Now you are wondering: why is the rate different? Is this not the same market and currency? The simple answer is yes and yes, but with a caveat. The global economy is active 24 hours per day. Foreign exchange rates are always fluctuating to accommodate this. Money does not sleep, so the markets do not either. Therefore, the rate at which you receive, coupled with the fees the kiosk charges, accounts for the difference in the money you receive back.

Airport-based currency exchange shops and ATMs know that you might need local currency to catch a bus, train, or taxi, and you are desperate to do so immediately. Bree, why are ATMs in the airport bad? It's an ATM. Airport ATMs used to be owned by European banks, but recently, those ATMs have often been replaced by machines owned by Travelex. The same people that run the exchange kiosks They are banking on you not knowing any better, but if you are reading this blog, you now do.

Better-Currency Exchange Stores

Okay, you had a little cash on you, enough to make it to your hotel to check in. Now you want to go do tourist stuff. You used your last bit of cash to catch a taxi to the market, but now you need more cash to shop and make it back. This is where the geniuses behind exchange shops make their profits. Because many of these shops do not take cards, or offer better prices if you pay cash, you will probably see at least one to two exchange shops in an area. Exchange shops are always located conveniently in high tourist traffic areas. While the rates are not horrible, they know that in the market, convenience is key. If you are in the midst of haggling for a bargain, the worst thing is to realize you do not have enough money to cover your costs. So, while the exchange rate will be high, it will not be as high as at the airport. If you can not make it to the best option, a currency exchange store is a viable option.

Best-Local ATM.

The key to getting the best rate is to "go where the citizens of the country bank." The best places to exchange money are local ATMs or banks. Many U.S. banks offer foreign ATM fee refunds and charge no fees for using a foreign ATM, so using your debit card at ATMs will offer the best exchange rate. Even if you have to pay a small ATM fee, the fee will be miniscule when you think about the money saved in exchange fees. Be sure not to use your credit card to get cash. That counts as a cash advance, and the interest starts to accrue the second you withdraw it. Only use your ATM or debit card. Also, make sure to call your bank and credit card companies before you leave to let them know where you will be visiting.

Make an effort to withdraw only what you will require. This way, you won’t have leftover cash that needs to be re-exchanged upon your return. If you think exchanging money is a hassle, imagine the experience in reverse.