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After a year of uncertainty about being able to travel abroad, restrictions are finally being lifted, which means that we can now take that long-awaited trip that we’ve been longing to take for a while now. For months, you’ve probably been thinking about what clothes you’re going to pack, how long you’re going to stay for, and what you’re going to do while you’re there.
One thing that may have slipped your mind during all of this is the exchange rate. If you are travelling to a place that uses a different currency from us, you will need to exchange your money for the right currency. Luckily, an exchange rate comparison site will be able to help you compare rates so you can save as much money as possible.
But what else do you need to know about exchange rates before travelling? Well, let’s find out.
Only Exchange What You Need
Though people like to be on the safe side when it comes to money, it is definitely in your best interest to only exchange the currency that you need, and no more. This is because, without realising, you could be spending more when it comes to the process of converting any money that you didn’t use back to the currency of your country. You won’t want to do that after your vacation as you’ll be wanting to save for the next one.
It’s also important to note that carrying around more cash than you need could cause significant consequences, especially if it gets stolen while you’re away. You won’t get this back, and it would be much safer to leave this money back at home. So, only exchange what you need. You’ll be thankful that you did.
Exchange Your Currency Before Arriving at the Airport
While we think it is a good idea at the time, exchanging your currency at the airport is definitely something that you should avoid doing. Unbeknownst to many people, travellers who make the decision to exchange their currency at the airport will find that they will be paying more to receive the currency of their destination. Most airports like to offer significantly higher rates because they know that if you don’t already have your money, you will be turning to them to get it done.
Depending on where you are travelling from, the airport could charge a premium as high as 15%. This figure alone is motivation enough to exchange your currency at a bank or other financial establishment before making the trip to the airport.
Know What the Exchange Rate is
To give yourself a rough idea about what the exchange rate is before travelling to your chosen destination, all you need to do is simply conduct a Google search with the keywords “currency converter” and you can follow the necessary steps from there. This will usually include selecting the currency of your chosen destination.
Though most people don’t decide to do this, it could help you to better prepare for how much money you can convert if you have a specific price range that you need to stick to. This is something that you don’t need to do, however, but you may find that it will provide you with a sense of financial security.
Use a Credit Card
There is a high possibility that you will lose a certain amount of money when you exchange any money for a foreign currency. This is because a fee may be involved. If you want to avoid having to pay any more than is required when exchanging your currency, you may want to think about using a credit card that has no foreign transaction fees when making any sort of purchase while abroad.
Of course, this method won’t be effective for everyone. Even though they are good for those who wish to avoid paying foreign transaction fees, it is very likely that they will come with a higher interest rate, which you will also be required to pay. So, be sure to do as much research as needed before deciding whether you want to take a credit card with you.
If you’re not an avid traveller, it can be hard to realise the importance of exchange rates. But, in fact, they are one of the most important aspects of a holiday that you must take into consideration before travelling. If you do this, you will have a great time.
Tip: Ordering online at the Post Office will get you their best rates and 0% commission. Get your currency delivered to your home, ready for collection at your nearest branch or via a Travel Money Card,