by Isabelle Esteves

Created on: September 03, 2008   Last Updated: September 16, 2008

You have finally made the decision to travel overseas. One of the first things you need to consider is how much cash you need to carry with you and how much of it needs to be in foreign currency. There are several ways to obtain foreign currency at home. Before you do anything, go online and check what the foreign currency exchange rates are for the currency you will need. This is one of many sites that can give you that information http://www.x-rates.com/. In addition to the exchange rate you need to know the fees attached.

1. Ask your bank or credit union to obtain the currency for you. Most banks can do this but of course nothing is free and you need to know upfront both the exchange rate and the fees.

2. If you are an American Express card holder they offer a foreign currency trading option. http://www10.americanexpress.com You can order the most popular currencies right online. There are fees attached to this service and of course you need to compare the exchange rate. If you go to American Express Office they are willing to help you with trading in foreign currency at the end of your trip. There is no charge for this service.

3. AAA also offers a foreign currency option. For popular ones like Euros and British Pounds they have them in the local office. If you need something else they can get it for you. They sell the money in bags so you get whatever $100 will buy you in the foreign currency.

It is always a good idea to get a small amount of foreign currency at home before you begin your trip. Get enough at least for your first day. You may need tip money or cab fare.

Once you arrive overseas there will be a whole other set of options for obtaining currency.

1. ATM's are readily available throughout most of the world unless you are going into the deep jungle or the outback. Check with your bank so that you know upfront what they charge for ATM use and if they charge a percentage above and beyond the exchange rate.
Foreign ATM's may add an additional charge as well but you will know that when you ask for your cash. Always take the option that has the ATM using your language of preference. If you don't understand Latvian you don't want the ATM giving you choices in Latvian.

2. Foreign banks are in the business of trading foreign currency. You will need to go in and talk to a bank official and they will write down all the information for you including the exchange rate and charges. This isn't the best rate you can get but if your need money it is an easy option to turn to.

3. Only use a Bureau de Change if you are desperate. Their rates and fees are the worst. Never exchange your money on the street with a local, this is a very bad idea and may be illegal.

4. American Express Offices overseas can do exchanges for you as well and can even cash a check drawn on a foreign bank as long as you are a card holder.

Your credit card will give you one of the best rates for shopping but avoid very high fees by not taking a cash advance.

There really is no mystery to foreign currency conversion. The hardest part will be trying to understand how that rate translates into your home currency when you are trying to understand how much something you want to purchase costs.

Learn more about this author, Isabelle Esteves.
Click here to send this author comments or questions.