20 Managing Money Abroad

With respect to managing money abroad, a few general suggestions follow. Instructor teams may have additional suggestions for their individual program sites at the Student–Guardian Orientation.

A Debit Card (preferably with SECURITY CHIP and four-digit PIN) is necessary to allow students to withdraw money directly from a U.S. checking account at an ATM. This option is fast and convenient and typically offers a decent exchange rate. It also allows parents/guardians to provide spending money to students gradually, which can help them budget while abroad.

• Students should use their card at least once before leaving the U.S. and search online or ask at the bank for information on overseas ATM fees, as well as limits on a single withdrawal or the number of withdrawals allowed in a 24-hour period, etc.
• ATMs are plentiful throughout the host countries, but students might want to be sure their particular debit card/bank affiliation will be recognized by ATMs abroad and will not incur high transaction fees.

A Credit Card (preferably with SECURITY CHIP and four-digit PIN) is a good idea for unexpected costs such as visits to hospitals or clinics. These also permit cash advances, if necessary, although fees and high interest can apply. VISA and MasterCard are widely used throughout the world, while Discover and American Express are not as commonly recognized or accepted.

Be sure to tell your bank (and possibly your credit card company) the dates when these cards will be used abroad and where they will be used. Otherwise, there is a possibility that they will block purchases and disable the cards as a security measure against identity theft.

More useful tips on currency exchange and managing money abroad:

• IUHPFL recommends exchanging $50–$100 USD for host country currency before departure. This way, students arrive in the host country with the ability to buy food on the trip from the airport to the host city as well as snacks and incidentals during the first week or so of the program.
• Students and parents/guardians can plan ahead and order host country currency from a local bank in their town or arrive early at the international airport in order to exchange currency before meeting the group at the check-in counter.
• Students should avoid taking U.S. dollars to exchange at banks abroad because this process can be costly and difficult to coordinate.
• Students and their parents should come to an agreement on how much spending money is reasonable for the duration of the program. Each family’s unique financial circumstances determine a student’s travel budget. Generally speaking, an average of $50–$100 per week provides sufficient spending money. Most weeks, students will likely spend less than $50; other weeks, when excursions take place, they might spend $100 or more.
• Using a debit card or credit card abroad to make purchases will involve additional fees every time and can use up a student’s spending money at a rapid pace. The best approach is to use the debit card to withdraw money at an ATM perhaps once or twice per week and to make purchases with cash, while using the credit card only for emergencies.
• The trick when withdrawing money from an ATM is to know how much to take out at one time. Students need to find that comfort zone between having the funds they need for a few days and not having too much money on their person in case of theft or loss.
• Once onsite, students are advised to keep an equivalent of $50 in their bedrooms/suitcases at all times in case their backpacks/purses/wallets are lost or stolen. This way, they will have money to get them by until debit and credit cards can be replaced and sent to them by their parents/guardians.
• Students should be prepared to purchase 4–6 of their own meals during the program at an equivalent of $10-$20 per meal. Students will be responsible for their own lunch/snack on the bus ride from the aiport to the host city upon arrival. Additionally, sometimes when the team is traveling together, it isn’t possible for everyone to eat at the same location. Especially in large cities and airports, students and instructors will divide into small groups and eat at venues within close proximity to each other. Aside from these occasions, all meals and snacks are provided to students and included in the Program Fees.
• Students should consider their souvenir, gift, and other purchases abroad carefully. Large souvenirs and gifts can require the purchase of more luggage, which incurs additional and often high fees on the return flight to the U.S.
• If you pack a large canvas bag, as recommended, it can be used as carry-on luggage for a few small gifts and souvenirs upon the return to the U.S.

Financial Issues, Banking Problems

Occasionally a student might experience problems accessing funds from their bank accounts. This may be due to several different reasons, including faulty ATM machines, wrong PIN numbers, trying to withdraw more money than the bank limit allows, etc. In such cases, instructors will help the student to locate another ATM or contact their parents/guardians or banks in a timely fashion.

Students are encouraged to know the PIN for their debit cards by the numbers, not by letters, because letters aren’t always available on the keypads at ATMs abroad.

If the student experiences loss or theft of their cash, instructors will contact the IUHPFL Office immediately, so that parents/guardians can be informed and take necessary steps with the bank, credit card company, etc.

The following strategies can prevent situations where the student is without a means to make purchases onsite for a period of time:

• Having both a debit card and a credit card and keeping them separate
• Keeping a small amount of currency on-hand, separate from their debit and credit cards
• Tucking away an equivalent of $50 in their bedroom/luggage.

Please know that under no circumstances are instructors, Onsite Coordinators, or the student’s host family permitted to lend money to the student. Parents can rest assured, knowing that all basic needs of the student are provided by the program. Not having access to spending money is not considered an emergency but will be addressed in a timely manner.