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Ultimate Guide to Managing Money Abroad

by David Charles (2018-09-28)

Are you planning to go abroad to spend a vacation with your family? If so, you must be worried about all the expenses that come with flight booking, accommodation, and using transportation in a foreign country. On top of that, if you also have to bear the extra cost in the form of foreign transaction charges, it can add more to your financial burden, making it harder for you to enjoy time with your loved ones.
Given below is the ultimate guide that will enable you to manage money abroad without wasting too much in a transaction fee.

Use ATMs in the Foreign Country
When it comes to saving money on a foreign currency transaction, the best way is to use the ATM abroad. Every time you make a transaction, a transaction fee of 1 percent to 2 percent is charged on top of the spot rate. This is not so high as charged by banks. However, if you want to avoid it, ask your banks if they have an ATM alliance with the local financial institutions of that country. This will enable you to fully avoid the foreign transaction fees.

You may also be charged another $2 to $5 dollars for using the ATM in a foreign country, but that fee can be waived, depending on your account type.

Credit Cards for Shopping Abroad
You can also use credit cards to avoid excessive transaction fees. Sign up with the credit card without a foreign transaction fee and you will not have to pay any extra money whenever you buy something with your credit card.

There are some travel reward credit cards that offer different types of insurance plans for lost luggage, flight cancellation, etc., but before signing up for that card, read their policy. Going through the policy enables you to find out the level of coverage they offer in a particular insurance plan and if it is worth signing up for.

Online Exchange Platforms for Money Transfer
This is yet another great option to manage money abroad. There are some countries that do not accept debit or credit card for transportation or food. If you traveling to one of those countries, make sure that you keep some cash in your wallet. This is where online currency providers come in handy. In fact, by using their online services, you can transfer the money anywhere you want.

For example, the Mississauga currency exchange provider has made it possible for people to place an order online and transfer the funds within the same day. If, for example, you wish to purchase a piece of land in a foreign country or want to pay for your child’s tuition, you can sign up on these platforms for free and place the order. The entire process takes just a few minutes. After they take written confirmation of the trade, the funds are transferred to the desired location either on the same day or the very next day.

Banks for Secure Exchange Transaction
You can also request your bank to exchange money. However, banks charge a very high fee for exchanging money. It can be as high as 10 percent of the transaction money, which can be quite high if you want to exchange money in bulk.

Therefore, make sure that you look for alternative options. Open a bank account that does not charge a conversion fee or a foreign transaction fee. There are some banks in Canada that are offering these types of bank accounts. This option is quite suitable for those who frequently travel to another country.

Whatever option you choose, do not use currency exchange kiosks at the airports. They charge insanely high commission charges and conversion fee, making it difficult to save much for the trip.

It is very important to take financial decisions very carefully, especially when you are traveling overseas with your family. The expenses of living in a foreign country, even for a few days, can be quite high. You do not want to pay unnecessary fees from your hard-earned money when you can avoid it altogether. Therefore, do your research and consult a financial advisor if the need be. This will equip you for the trip and enable you to take a responsible decision on a timely basis.