Studying abroad means having to account for a difference in currency value between the U.S. and your host country.
For those in Europe, this conversion is not in our favor for most countries. In some countries (like the Czech Republic and Poland), your dollar will stretch further. However, in places like the UK, Switzerland, and the Eurozone, your budget may shrink due to the stronger local currency. On some days, your money may go further than on others, as exchange rates fluctuate with the market. This can make budgeting more ambiguous. To make matters worse, some banks/credit cards can charge exorbitant fees when transacting in another currency.
While you can’t make the US dollar stronger, here are some tips to mitigate losses.
Before arrival:
- Check the foreign transaction fees (if any) with your debit/credit cards. Personally, I opened a new checking account that has no foreign transaction or currency fees when withdrawing funds at an ATM, in case I need cash.
- If using credit/debit cards (the safer option because of pickpocketing!), make sure they are in the Visa or Mastercard network, as American Express and Discover are not as widely accepted.
During:
-At the point of sale, you might be asked to pay in the local currency or the US dollar. Always pay in the local currency! The merchant’s bank may choose an unfavorable exchange rate with added fees. Your cards network, provided they are fee-free, will charge a rate closer to the market.
-Watch daily currency markets. If you need cash sometime soon, consider withdrawing when the dollar is stronger than usual.
-If helpful, consider converting your monthly budget into your host currency to keep track of your finances.
By being mindful of fees and exchange rates, you can maximize your budget for experiences—whether that’s exploring new countries (I’m at 10 and counting!) or simply enjoying local cuisine without worrying about hidden costs.
Danielle Davenport
Spring 2025
GW Paris - Universite Paris-Dauphine (GW Study Program)
Columbian College of Arts and Science
Economics Major