The Ultimate Guide to Exchanging Money While Traveling

So, your bags are packed, your passport is ready, and you’re just about to board that flight. But then it hits you — should you exchange money now? At the airport? Wait until you land? Use your card? Withdraw from an ATM?

When it comes to travel, managing money smartly can save you hundreds of dollars — or cost you more than a nice hotel night if you’re careless. That’s why we’ve created this colorful and practical guide to all your currency exchange options, so you don’t end up paying more than you bargained for.

Let’s break it down 👇

🏦 The 5 Main Ways to Exchange Money (And When to Use Each)

1. Currency Exchange Booths (The Airport Trap?)

• ✅ Good for: Emergencies or small amounts

• ❌ Downsides: Often the worst exchange rate, with hidden fees baked into the rate

• ✨ Pro Tip: If you must use one, compare booths and ask exactly how much you’ll get after fees.

2. ATMs Abroad (Usually the Best Rate)

• ✅ Good for: Withdrawing local currency at a solid interbank rate

• ❌ Downsides: Your bank might charge a foreign withdrawal fee + ATM fee

• ✨ Pro Tip: Use a travel-friendly bank card like Wise, Revolut, or Charles Schwab to minimize fees.

3. Credit Cards (Simple, Smart – but Watch Out)

• ✅ Good for: Hotels, restaurants, shopping, car rentals

• ❌ Downsides: Some cards charge foreign transaction fees (up to 3%)

• ✨ Pro Tip: Choose a credit card with no foreign transaction fees, and always pay in local currency to avoid dynamic currency conversion scams.

4. Cash from Home (Familiar, but Risky)

• ✅ Good for: Peace of mind and budgeting

• ❌ Downsides: Bad exchange rate from your local bank, risk of loss or theft

• ✨ Pro Tip: Exchange a small amount before you leave, just to cover first-day expenses.

5. Currency Exchange Apps (Yes, That’s a Thing Now)

• ✅ Good for: Transferring between your own accounts, or sending money

• ❌ Downsides: May not help with physical cash

• ✨ Pro Tip: Use apps like Wise or Revolut for virtual cards, fast transfers, and smart conversions.

🧮 How Much Money Should You Exchange?

💡 Short answer: Don’t overdo it.

Some travelers exchange large amounts to avoid fees. But what if you don’t spend it all? You’ll lose again when converting leftover currency back — especially if it’s a less-used currency like Thai Baht or Moroccan Dirham.

✔️ Better idea: Withdraw or spend in smaller chunks. And unless it’s a country where cards don’t work, don’t carry your whole travel budget in cash.

🔄 Should You Convert Leftover Money Back?

Depends.

• 🟢 Small amount? Keep it as a souvenir or for your next trip.

• 🔵 Larger amount? Consider converting only major currencies (like EUR/USD/GBP) back at your home bank — not at the airport.

• ❌ Avoid reconverting niche currencies like Indonesian Rupiah or Colombian Peso — you’ll lose too much in the process.

❓ Common Questions

Q: Is it cheaper to withdraw money abroad or exchange at home?
A: Usually cheaper to withdraw abroad using a no-fee debit card.

Q: Can I use USD or EUR in other countries?
A: Sometimes — but it often leads to bad rates or refusal. Local currency is king.

Q: How can I avoid hidden fees when spending abroad?
A: Always pay in the local currency and use cards with zero foreign transaction fees.

🧠 Final Travel Tip:

Think of currency like sunscreen:
It’s annoying to plan for, but if you ignore it, you’ll get burned.