Handbook – Managing Money on Your Program

Before going on your program, create a budget. You can download a Study Abroad Budget Worksheet to assist you.  Some aspects of your program may have set costs while others might give you more space for flexibility, such as independent travel. Consider local experiences and travel within your host country instead of extensive international travel while on your program – this can definitely help you to lower your budget! Find out what opportunities you have to prepare meals for yourself in your housing. Is there a shared kitchen? Most programs do not have meals included in the program fee and budgeting to eat out for every meal can get very expensive. Past program participants are great resources in helping you complete your budget worksheet.

Familiarize yourself with the current exchange rate of your host country. In most locations, the easiest way to access cash is from an ATM. Some locations may require that you bring cash to exchange in country if credit/debit cards are not accepted. Review your program-specific materials for advice on accessing cash in your program location.

It is advisable to obtain a reasonable amount of cash in the local currency from your bank prior to departure in order to pay for incidentals and/or transportation costs upon arrival. Already having local currency on hand will be one less thing you need to do immediately upon arrival. If you’re unable to obtain the local currency before you leave, there are ATMs and currency exchange centers in almost all international airports.

If you are bringing U.S. Dollars to exchange, there is a fee assessed to the transaction based on the amount of money exchanged. We recommend that you bring newer crisp bills to exchanges, as some countries restrict the bills they are able to exchange to those recently printed. Your passport is often needed for identification when exchanging money.

With an ATM/debit card, you will be able to withdraw cash (in the local currency) from an ATM and have it debited (in U.S. dollars) from your U.S. account. Since ATM/debit cards are linked to banking accounts, you can monitor your expenses, especially with online banking services. Take caution when using online banking while in a new location. Make sure that your internet connection is secure and that you are not using public computers.

ATM/debit withdrawals use a favorable exchange rate, typically better than exchanging U.S. dollars at an exchange counter. Your U.S. bank may impose a service fee for an international withdrawal, and they establish the withdrawal limit at any one time and on any one day. The ATM itself may charge a local transaction fee; try to find a fee-free ATM, if you can. The Visa ATM Locator and the MasterCard ATM Locator can help you find ATMs in your program location before you arrive.

Be sure to inform your bank of your expected time traveling so they do not prevent you from making transactions and ATM withdrawals. Many banks will allow you to set this type of note in your online banking portal.

If you travel to other countries while on your program, be sure to update your bank on your destinations before you travel in order to prevent a freeze on your accounts.

Credit cards are widely used throughout the world, with MasterCard and Visa accepted most universally. Consider obtaining a credit card in your own name before starting your program to assist in emergencies. This will also allow you to begin building credit history as a student. Many credit cards do not have foreign transaction fees, but you will want to verify yours does not have one. Credit cards can also be used to obtain cash advances at many banks and ATMs (typically for a high fee). The same tips and precautions for using an ATM/debit card also apply to credit card use:

• Check with your bank/card company to be sure your ATM/debit or credit card is internationally accepted and has a 4-digit PIN number.
• Inquire about rules for using your ATM/debit or credit card abroad (fees and limits).
• Inform your bank/card company of your expected time traveling so they do not stop processing any of your ATM/debit card transactions thinking your card has been stolen. Many banks will allow you to set this type of note in your online banking portal.
• If you travel to other countries while on your program, be sure to update your bank/card company on your destinations before you travel in order to prevent a hold on your accounts.
• Consider sharing your card details and phone numbers listed on the back of your card with your emergency contact in the United States. This will allow you to quickly access this information if your card is lost or stolen.

Although credit/debit cards are widely accepted, not all merchants accept them, so always be prepared with cash on hand.

Like the U.S., many countries are increasingly moving to credit/debit cards that include EMV chips for added security. If your cards do not have a chip, check with your issuer to see if you can update your card prior to your departure.

Cards with EMV chips issued in the United States do not always work well abroad in self-service payment machines (such as ticket kiosks). Rick Steves has a good blog post that provides more detail.

If your program is a semester or longer, opening a local bank account may be an option. If you have questions about opening a local bank account, contact your on-site staff. Prior to your departure, research how you will transfer funds into any new accounts you open.

Carefully monitor your money while on your program. In the event you need money transferred, consider the following options:

• Have a family member or friend deposit funds into your U.S. bank account, and withdraw the money with your debit card.
• Western Union and Moneygram: These are immediate cash transfer services used to transfer money worldwide. Both charge a fee for this service based on the amount of money sent.
• If you have opened a bank account abroad, money can be wired directly to it from the U.S. This can take 2-10 working days and there is a fee payable at the U.S. end of the transaction. You must provide the U.S. bank with the overseas account details: number, address of the branch, and also the bank’s SWIFT code or routing number(s). Bank accounts in Europe also have an IBAN number that needs to be provided.
• Consider apps like PayPal, Venmo, Cash App or Splitwise that allow quick person-to-person money transfers.  There may be fees to do so internationally or to transfer to a bank account.