THE DO’S AND DONT’S I LEARNED (THE HARD WAY) ABOUT FINANCES ABROAD

This article is written by a student writer from the Her Campus at Texas chapter and does not reflect the views of Her Campus.

When I first began traveling abroad, I expected the usual challenges: figuring out public transport, managing language barriers, and adjusting to new routines. What I didn’t anticipate was how much of a learning curve there would be with money.

Between studying abroad programs and personal trips, I’ve made my fair share of mistakes with cards, ATMs, and exchange rates. Looking back, though, those slip-ups shaped how I now approach finances and gave me more confidence when traveling.

Travel Credit Cards
Before leaving the country, I researched travel credit cards to find the best option. I compared options through my bank and others that worked with my credit score, prioritizing cards without foreign transaction fees or annual fees. I also checked which cards (Visa, Mastercard, Discover, etc.) were more widely accepted in the places I was headed.

Once I found one that fit, it became my go-to for purchases. Along the way, I noticed that choosing to be charged in the local currency (instead of USD) almost always worked out better for me.

Navigating ATMs
Cash was trickier. Early on, I didn’t realize that withdrawing money with a credit card counted as a cash advance, and the fees were much higher than I expected. After that, I reserved my debit card for ATM withdrawals only.

I learned that ATMs often ask whether I want to use their conversion rate or my bank’s. One online travel tip I came across suggested choosing your bank’s rate instead of the ATM’s. Curious, I tested both options at the same machine: one withdrawal using the ATM’s rate and another using my bank’s. I found my bank’s conversion ended up giving me more money.

As a side note, I also felt safer (and sometimes saved a bit on fees) when I used ATMs attached to banks in bigger cities, rather than standalone machines near tourist areas.

Exchange Rates
Another lesson came at checkout. I was sometimes prompted to choose between paying in USD or the local currency. The first time I chose USD, I realized the exchange rate wasn’t in my favor. After that, I consistently stuck to local currency, since my bank’s conversion usually gave me a better deal. Of course, exchange rates and fees frequently fluctuate, so my experiences varied.

What These Experiences Taught Me
Traveling comes with countless small decisions and budgeting choices, and everyone approaches them differently. For me, these little lessons built up over time, making my travels smoother and giving me more flexibility with money. My own trial-and-error abroad has become its own kind of guide, one that continues to reassure me every time I set out on a new trip.