Money

​Cash vs. Plastic?

• Cash is going to be the easiest way to pay for things
• Day-to-day spending is more cash-based in Europe

We strongly recommend:

• Paying for as much as possible with cash
• Use ATMs with a flat fee (not percentage)
• Using a bank/debit card that charges no or low fees for international ATM transactions
• Withdraw larger amounts at each transaction
• Then carry with you just what you need that day (leave the majority at home
• Bonus: the less you use your cards, the less likely your information will be stolen

Basic Do’s and Don’ts: vs. Plastic?

• DON’T exchange dollars for foreign cash at a currency exchange booth (it’s a rip-off!)
• DON’T carry a lot of cash with you (either traveling to Asia or once you’re there)
• DON’T buy foreign currency before your trip
• DO keep your money safe at your host family’s home and/or in a money belt
• DO use local cash where you travel
• DO assume you’ll be shortchanged so count your change to be safe
• DO familiarize yourself with the exchange rate (so you can do rough estimates in your head)

One option: E-card

• You can apply for this E-card which works for 80% of local merchants in Italy
• Read more about this card

ATM tips

• Names: distributeur in France, cashpoint in the UK, and bankomat pretty much everywhere else
• Ideally, withdraw cash from bank-run ATMs that are just outside that bank during the bank’s opening hours (in case your card gets eaten so you can go inside for help)
• Bank ATMs usually do not charge usage fees and are generally more secure (cameras)
• Select the UK flag or English options when you withdraw
• Select debit, not credit — avoid extra fees this way
• Avoid “independent” ATMs as they usually have high fees
• Know the daily limits set by your bank at home
  • Bear in mind the exchange rate when calculating your daily limit
• European banks may also have daily withdrawal limits
  • If you need more than this, you’ll need to go inside the bank or use multiple cards
• Change

• Note: A downside of using an ATM is that sometimes only gives larger bills
  • If you don’t have anything smaller than a €50, you’ll likely need to break it down into smaller bills (at a restaurant or grocery store) to get smaller change
• Some services, like small shops and taxis, don’t like breaking large bills

We suggest bringing the following

• Debit card: Use this at ATMs to withdraw local cash, which you’ll use to pay for most purchases
  • Make sure it has a Visa or MasterCard logo
  • Check with your bank what the international transaction fees are
    • Ideally, you want a flat fee per transaction/withdrawal (a few dollars, usually $2-$5)
  • Don’t withdraw cash all the time, try to space it out so you don’t pay the fee so often
  • Note: European ATMs will withdraw funds only from checking accounts
    • So make sure your checking account balance has enough or be able to transfer funds from your savings account
• Backup card: Not a bad idea to carry a backup card (debit or credit, ideally from another bank), in case your main one gets lost, demagnetized, stolen, or just doesn’t work
• US dollars: As an optional backup plan, you can bring some cash ($50 – $100)
  • This can come in handy for emergencies or if your ATM card isn’t working

You may also choose to bring

• Credit card: Make sure the international fees are zero! You can use a credit card to pay for larger items (train tickets, larger shops and restaurants, etc.)
  • Don’t use these with an ATM (they have sky-high withdrawal fees and interest rates
• E-card: Handy card and works for a ton of local merchants and zero ATM fees

Before you leave

1. Know your cards
   1. Make sure they will work abroad! Ideally, use a debit card with a Visa/MasterCard logo. (For example, Discover is unknown in Europe)
2. Ask about fees
   1. With either credit or debit cards, you could be charged any or all of the following fees:
      1. A currency conversion fee (usually 1–3 percent of the whole amount)
      2. A Visa or MasterCard international transaction fee (1 percent)
      3. For debit cards, a flat $2–5 transaction fee each time you use a foreign ATM
      4. Some major US banks partner with European banks, allowing you to use certain ATMs without fees
      5. If you’re getting a bad deal​, consider getting a new debit card​
3. Check your cards’ expiration dates
   1. If your card will expire during or soon after your trip, get a new one
4. Let your bank know your travel dates
   1. Do this in writing, not verbally (i.e. online or via your bank’s app)
   2. Set your travel notification for the countries you’ll be in and the dates you’ll be abroad
   3. Do this for weekend trips as well if you’re visiting another city/country
   4. This way, they won’t freeze your card if they detect unusual activity
5. Know your PIN
   1. Make sure you know the four-digit PIN for all of your cards
   2. Request it if you don’t have one (many purchases require it)
6. Adjust your ATM withdrawal limit
   1. Find out how much you can take out daily
   2. Remember that you’re withdrawing cash in the local currency
   3. So if your daily limit is $200 in US dollars, that might be €150 or so depending on the exchange rate
   4. Ask for a higher withdrawal limit if you want to get more cash at once
7. Have a back up plan
   1. In case your main card doesn’t work, what’s your back up plan?

Tipping

• Don’t stress about tipping
• Tips are nice wherever you travel, but tipping in Europe is different
• The US tends to be more generous and automatic in tipping compared to Europe

Restaurants

• Waiter/waitress tips are more modest in Europe than in America
• This is because servers in Europe are well-paid and tips are considered a small “bonus”​
• Check the menu to see if a service charge is included (servizio in Italian, service in French, servicio in Spanish)
• If yes, don’t worry about tipping (it’s included in the price)
• If no, a tip of 5–10% is normal (10% is a big tip in most places)
• Tipping15% or 20% in Europe is unnecessary and even culturally ignorant​
• If there aren’t waiters and waitresses, (aka you ordered at a pub or counter) don’t tip
• Generally, it’s better to hand the tip to the waiter when you pay the bill vs. leave it on the table (especially in busy places)
• Servers prefer to be tipped in cash
• France: All restaurant prices include a 12–15% service charge, so locals tip very little, if at all
• Mediterranean Europe: a 10% service charge is usually built into your bill. If you wish, you can add an extra €1–2 for each person in your party, or about 5 percent
• Spain: If you order at a counter (i.e. when sampling tapas at a bar), no need to tip but you can round up with a few small coins
• London: Restaurants commonly include a 12.5% service charge in the bill
• Scandinavia: Service charge typically included in your bill might go to the restaurant owner instead of your server, so for good service, add 5–10%
• Czech Republic: Speaking just a few Czech words will likely get you better service in the Czech Republic, and you won’t be expected to tip more than a local (5-10%)
• Greece: It’s considered rude to leave a single euro, even for a small total so if the service isn’t included in the bill, leave at least a €2 tip, even for a small bill
• Iceland: No-tipping country!
• When in doubt, if you’re pleased with the service, add a euro or two for each person in your party
  • Any tip is appreciated and don’t stress about leaving the ‘wrong’ amount of tip

Taxis

• Just round up to the next euro on the fare (to pay a €13 fare, give €14)
• For a long ride, round to the nearest 10 (for a €76 fare, give €80)
• If the driver carries your bags or helps you catch your flight, maybe add a bit more
• If you’re being driven in circles or ripped off somehow, skip the tip!

Tour Guides

• If you’ve already paid for the tour/admission, you don’t have to tip extra (€1-2 euros is plenty if you want to)
• If it’s a free tour, €2–5 tip per person is good, depending on the size of the group
• In group tours (i.e. a city walking tour), €2–5 tip per person is good, depending on the size of the group (higher rate for smaller groups)
• For tours with a private guide for a few hours, a tip of €10–20 for the group is fine
• You can do more if the guide goes above and beyond​
• When in doubt, ask your host family (different countries tip for different things)​

 

​Informative resources for money

• Oanda – currency conversion tool, with handy app version
• Federal Trade Commission – advice on bank card theft and more
• NerdWallet – objective advice on debit- and credit-card options for overseas trips
• Bankrate – compares bank-card fees
• Your bank’s mobile app
• Locate nearby ATMs and banks (and restaurants, pharmacies, etc.) with Google Maps, Apple Maps, etc​.
• Get more money tips from our friend, Rick Steves!

 

Ways to fund your adventure abroad

1. Tell your friends! You get a $70 discount for each friend you refer to the program ​​who does it as well
   1. When they apply, have them use your full name as the promo code
2. Save money:
   1. ​​Make and stick to a BUDGET
   2. Live off 70% or less of what you bring home
   3. Spend less on groceries (meal planning helps a TON!)
   4. Don’t buy things you don’t need
   5. Use cash, not cards
3. Make or raise money:
   1. Sell your textbooks on Amazon when the semester is over
   2. Get a job (or second job)
   3. Send out a fundraising letter
   4. Donate your birthday or Christmas
   5. Use a fundraising website
   6. Set up a car wash
   7. Host a garage sale
   8. Use Facebook/Instagram
   9. Host a bake sale
   10. Sell arts/crafts of your own making
   11. Babysit
   12. Tutor