Currency exchange is a very important part of traveling. In fact, knowing how to get the most out of your currency exchange can make or break your entire trip budget! Follow these tips to be sure that you get the most bang for your buck when planning your next trip abroad.
Learn the Rate
While you may check out the commonwealth bank exchange rates before you travel, seeing what your money can get you in the foreign currency, is not enough! You need to check the rates frequently, especially if you are exchanging your currency more than once. Rates can change from day to day depending on many different factors (your country’s economy, the general state of the world and the strength of the US dollar all come into play when calculating currency exchange rates). All of these things can change quickly, altering how much your money is worth. Before you go to convert your cash, see exactly what the current rates is (the commonwealth bank exchange rate is a good one to go off of!) and be sure to get a rate as close to this as possible.
Budget Properly
Having a set budget is a necessity when you are traveling. However, you also want to be sure to make your budget using your own currency as well as the local currency. Decide how much you can afford to spend in your own currency. Then, use a currency calculator to see how much your budget translates into where you will be traveling. The number that you get in the local currency is your new budget! This will help you as you look at prices for local hotels, restaurants and excursions. Thinking and planning in the foreign currency will definitely help you budget better and get the most out of your currency exchange.
Know the Worth
When you are shopping abroad, everything will be labeled in the foreign currency. This can be confusing as you are likely use to thinking in terms of your own form of money. The best idea is to download an app on your phone that can quickly convert a price in the foreign market to your local, hometown price. This is the fastest way to know if you are getting a good deal on an item or if it is overpriced.
Avoid High Fees
One of the best ways to get the most out of your currency exchange when traveling is to avoid places that charge high exchange fees and rates. The best places to exchange your money will be at local banks, credit unions and ATM machines. You should definitely avoid converting your money at airports, tourist destinations or in your hotel. All of these highly trafficked areas will certainly have additional fees on top of higher exchange rates. Do a quick check of the Commonwealth bank exchange rate before you convert your cash to ensure the rate you are getting is a good one! As far as fees, they should always be fairly low and a flat rate fee is far better than a variable percentage. These tips are sure to save you a lot of cash!