Understanding Euros and Other Currencies When traveling to Europe, take a moment upon arrival to familiarize yourself with the local currency. This will help you avoid confusion and make transactions smoother.
Best Practices for Managing Your Travel Money
Skip Buying Foreign Currency Before You Travel
Many travelers feel the need to have euros or pounds in hand before they depart. However, exchange rates in the U.S. are often unfavorable. Instead, withdraw cash from an ATM upon arrival—every major airport in Europe has them, and you’ll likely get a better exchange rate.
Avoid Currency Exchange Desks When Possible
Exchanging cash at kiosks or banks can cost you 5–10% in conversion fees. In an emergency, you may need to use one, but be aware that the rates can be even worse at airports and train stations. If you must exchange money, look for places that do not charge commission and compare the buy and sell rates—the gap should be less than 10%.
European Banks Rarely Exchange Money
Unlike in the past, most European banks do not exchange cash unless you have an account with them. Some post offices, however, operate banking services that offer currency exchange.
Spending Smart While in Europe
Use Local Currency Whenever Possible
Shops that accept U.S. dollars or euros in non-euro countries often provide terrible exchange rates—sometimes costing you 20% more. For example, in Switzerland (which uses Swiss francs), euros might be accepted in tourist areas, but you’ll lose money on the exchange rate. If you’re staying for more than a few hours, it’s best to withdraw and use local cash.
Avoid Credit Card Cash Advances
If you lose your debit card, you can use a credit card to withdraw cash—but this should be a last resort. Credit card cash advances come with hefty fees and high-interest rates. Make sure you know your card’s PIN if you need to use this option.
Understanding Exchange Rates & Currency Conversions
Don’t Overcomplicate Exchange Rate Calculations
Foreign currencies are decimal-based, just like the U.S. dollar. Learn the approximate exchange rate before your trip. For instance, if €1 equals $1.10, then €10 would be about $11. Apps can provide real-time conversions, but a rough estimate is often enough for day-to-day spending.
Stay Alert to Avoid Being Shortchanged
Always count your change when making purchases. Some cashiers, especially in high-traffic tourist areas, might take advantage of distracted travelers. If you’re not paying attention, you could be losing money without realizing it.
Optimizing ATM Withdrawals & Cash Usage
Plan Your Cash Withdrawals Wisely
Using an ATM is the best way to get local currency, but frequent withdrawals can lead to excessive fees. Instead, withdraw larger amounts at once to reduce the number of transactions. However, avoid withdrawing too much, especially if you’ll be crossing into a country with a different currency.
Use Up Your Coins Before Leaving a Country
Unlike in the U.S., coins in Europe can have high value (€1 and €2 coins are common). Before leaving a currency zone, spend your coins on snacks, souvenirs, or small purchases. Otherwise, you may end up with worthless change that can’t be exchanged.
Are Multicurrency Accounts Worth It?
If you travel frequently or spend extended periods abroad, a multicurrency account can help you manage your funds without constant conversions. However, for occasional trips, they are unnecessary—stick with a no-fee credit card to avoid additional expenses.
Final Thoughts
Being smart about how you handle money in Europe can save you time, stress, and extra fees. Plan ahead, use ATMs strategically, and always pay in local currency to get the best value for your money.
