You’ve finally saved up enough babysitting money for that backpacking trip across Europe you and your BFFs have been dreaming about since freshman year. The flights are booked, your Instagram feed is filled with pics of cute hostels, and you just bought a trendy new backpack off Amazon. But before you pack your bags, have you figured out the money situation?

Between museum tickets, meals out, and gifts for the relatives you’ll crash with in Italy, things add up fast when traveling. And nothing drains your budget quicker than getting stuck with crummy exchange rates when converting dollars to euros or pounds. But have no fear! With a bit of prep work, you can keep more of your hard-earned cash for souvenirs and gelato rather than expensive bank fees.

Check Your Credit Card’s Foreign Transaction Fees

Most standard credit cards charge a 1-3% fee on all purchases made abroad. So if you use your trusty Visa that’s linked to your student checking account to buy a cute beret at a Parisian boutique, you’ll get hit with extra charges. These fees can really add up, especially on big purchases like hotel rooms and flights.

Luckily, there are lots of credit cards designed for travelers that don’t ding you on international swipes. The key words to look for are “no foreign transaction fees.” I used the Capital One Venture Rewards card on my gap year backpacking through Thailand and Australia and saved a nice chunk of change. Just don’t forget to pay off the balance each month! Interest hurts more than foreign fees.

Compare Exchange Rates Online

Every day, the value of currencies fluctuates slightly based on complicated economic factors. Over the long run, some currencies gain value compared to others. But on a day-to-day basis, a dollar might buy 0.5% more euros one day and 0.5% fewer euros the next.

This matters when you go to convert your dollars to local cash abroad. You want the exchange rate to be as high as possible so your buck stretches further! The best way to get accurate, up-to-date comparisons is using a site like XE Currency Converter. It will tell you how much a dollar, pound, euro etc. is worth that day.

Pro Tip: Set up an alert on XE to get notifications when rates hit a favorable threshold for your destinations. Then lock it in!

Choose the Right Place to Exchange Cash

After some online sleuthing, you know precisely what the euro to dollar exchange rate is. Well done! But the posted “exchange rate” at the logy little shop by the Paris train station or airport kiosk is often far, far worse. Like 10% or more—we’re talking the cost of a nice bottle of French wine. Ouch!

Why the discrepancy? These convenience stores and standalone kiosks tack on high fees and commissions to earn profit on the transaction. So you end up with fewer euros to show from your precious greenbacks.

Instead, exchange most of your money at an ATM once you’re in-country to access the competitive interbank rates. Other smart options are your bank at home (if enrolled in a debit card program) or via reputable currency brokerages like OFX or TransferWise that offer excellent rates with transparent fees.

Avoid Dynamic Currency Conversion

Here’s a frustrating scenario: You’re at checkout minding your own business, thrilled with the awesome vintage flea market treasures you discovered in Barcelona. As you pull out your credit card to pay the merchant asks: “Would you like to pay in Euros or U.S. Dollars?”

You breathe a sigh thinking your credit card will do the currency conversion automatically, sparing you the mental math after sangria hora. “Dollars please,” you reply confidently. Then bam! You get home to realize your credit card converted the total at a much lower rate with hidden fees.

This shady practice is called dynamic currency conversion and allows retailers to make money off the exchange. Just say no next time and have your bank handle the transaction in the local currency. The rate will be WAY better.

Maximize Your Cash Back

All this talk of exchange rates might have you wondering if you should bother bringing physical cash abroad at all. After all, won’t your credit and debit cards do all the exchanges seamlessly? Yes, but not always at an ideal rate.

However, one cool trick to stretch your spending power overseas is using cards that refund ATM fees and offer cash back bonuses on foreign transactions. The SoFi Credit Card and the Charles Schwab High Yield Investor Checking cards both rebate overseas ATM charges. And several travel rewards cards give cash back percentages on international swipes with no foreign transaction fees.

Again, just pay off balances promptly to dodge interest. Think of cash back bonuses as free walking tour money!

Float Some Digital Coin

Finally, if you’re feeling extra tech savvy, consider loading up a travel debit card or converting some cash to Bitcoin or Ethereum before heading abroad. The value of cryptocurrencies floats daily just like national currencies and they aren’t tied to a specific country or economy.

Popular travel cards like PNY Gift Cards have cryptocurrency conversion options where you can convert to Bitcoin then back to traditional money. That way if the exchange rate drops while you’re backpacking about, your purchasing power stays intact! Welcome to the future of finance, my friends.

Over to You

Hopefully these tips help save you some real money on your upcoming adventures abroad! Just remember:

• Check for credit cards with no foreign transaction fees
• Use sites like XE to compare daily exchange rates
• Withdraw local cash from ATMs or currency brokerages
• Decline “dynamic currency conversion” at stores
• Maximize bonuses from cash back travel credit cards
• Consider topping up crypto-linked travel debit cards

Disclaimer: The content provided is for educational purposes only and is not intended as financial advice. Please consult a professional financial advisor to ensure the information is suitable for your personal circumstances.