| It’s a festive season and all minds are set for | | | | longer, especially in self catering accommodation. |
| a vacation outside the…. (Put the name of your | | | | Your local bank should be able to set up a debit |
| country). The question of foreign currencies arises. | | | | card in the country you are visiting and ATM |
| Most holiday makers prefer or may be don’t | | | | withdrawals, as well as other transactions will be |
| have an option but to use cash which obviously | | | | at local rates that are fair. |
| would be converted to foreign cash. Apart from | | | | Foreign Debit card |
| paying your way through your vacation by cash, | | | | With these be wary of how much you spend |
| it would be wise to consider use of other available | | | | when charging items or services to your card. An |
| options like credit cards, debit cards or travelers | | | | ATM withdrawal in your country may cost less as |
| cheques. These options are safer and less costly | | | | compared to the foreign country. For instance I |
| in terms of converting to stronger foreign | | | | pay $0.50 to withdraw in my local bank and this |
| currencies. | | | | may cost something like a dollar, a pound or a |
| Let’s now take to the pros and cons of each | | | | euro in your destined foreign country or even |
| of these three in terms of conversions. You | | | | three times the amount it costs locally. If shopping |
| would also love to know the convenience of | | | | for items then, imagine how much more you |
| carrying each of those around so that you | | | | would be charging to your card if you are not |
| don’t attract grab away you hard earned | | | | adding as you shop. There is a possibility of |
| investment. | | | | meeting the frustration of overcharging your card |
| Cash | | | | or find yourself short when you are away from |
| You will agree with me that despite the | | | | home. |
| conveniences this form of value provides it’s | | | | Well this suggests that a prepaid local debit card |
| the most risky of all and can be bulky at times | | | | would do best for the sake of sticking to a |
| especially if your country has a stronger currency | | | | budget. In a layman’s language, a pre-paid |
| than the destined country. | | | | local debit card is one that allows you to deposit |
| Another eminent disadvantage is that you will | | | | the money you have budgeted for your holiday |
| have to pay more because you will be charged to | | | | and thus you are more likely to keep to your |
| exchange local currency to the currency you | | | | budget. |
| need. A side note to consider; always change | | | | Credit Cards |
| your local currency in your country as foreign | | | | The high cost it takes to operate this form of |
| countries may charge a higher commission. | | | | value makes them to be avoided altogether. If |
| A small amount of cash is, however, | | | | your account is in your local currency say US |
| recommended for payments like taxi fares; | | | | dollars you will be charged when buying something |
| maybe tips in hotels and small items like drinking | | | | in the foreign country and the exchange |
| water. | | | | commission. |
| Traveler’s cheques | | | | Using a credit card in foreign currency is also |
| These are widely accepted in most countries. | | | | unwise because you may intend to pay for it |
| These are cheques of fixed amounts that you | | | | within the interest free period, and comes to |
| buy in the currency of the country you will be | | | | more than you anticipated and that may be the |
| traveling to, and are widely accepted in most | | | | beginning of a debt nightmare as interest is |
| countries. | | | | charged on outstanding balance and interest, which |
| Compared to using cash, traveler’s cheques | | | | is how many people end up with unbelievable |
| have much more advantage of being cheaper, as | | | | credit card debts from a seemingly small amount. |
| they are charged a low commission of say 3% to | | | | Although it’s not possible to pinpoint the exact |
| 5%, compared to the transaction fees which are | | | | amount of money that you will spend during your |
| charged on cards and are still cheaper than buying | | | | vacation, this is a guide to the least to most |
| foreign currency. ‘Beware, however, that | | | | expensive forms of cash to spend abroad and |
| some countries do not accept these cheques and | | | | which are the safest and most convenient. |
| one may have to exchange them for cash’. | | | | Well at the end of the day the choice is yours. |
| Well it’s always advised that you have a prior | | | | Consider, however, what form of money will cost |
| knowledge of the country you are traveling to. A | | | | you least to convert and how safe it is to walk |
| reconnaissance would be the best. | | | | around with. |
| Debit Card | | | | Now that you have learnt the safe and |
| Local debit card | | | | inexpensive foreign cash in foreign places, you |
| A debit card in the currency of the country you | | | | would love to consider how to choose a traveling |
| are staying in is the best and least costly option if | | | | agent. Other wise I wish you the best of holidays. |
| you are going for a stay of several days or | | | | |