When I immigrated to Barcelona back in 2018, I had a hefty chunk of (physical) change in my suitcase.
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I’d taken on a side gig to save up for the big move, and some of those earnings were in cash. While it’s legal to bring up to €10,000 into Europe (or its equivalent in another currency), I was more than a little apprehensive about what to do with that money once arriving.
Should I exchange it for euros in one fell swoop? Should I hold onto it until I open up a bank account, and then deposit it? Or should I keep it in a shoebox under my bed and parse it out for those tighter moments? (I know this isn’t the Great Depression, but that’s my impulse.)
The better question is probably, does the average traveler actually need to bring cash with them?
In my case, I was immigrating full-time—so I needed every dime with me, including cash earnings. But the average traveler probably doesn’t need more than a hundred or so dollars with them when they head abroad.
Here’s what you need to know about bringing cash abroad, exchanging dollars for local currency, and using a card, instead.
Should you bring cash with you?
I always recommend having some cash on you when traveling.
Some travel writers consider this risky due to pickpocketing, but you can always leave the bulk of your cash in your hotel room or rental.
The idea behind having cash on hand is that it’s more widely accepted globally. Though places like Europe and East Asia are renowned for accepting cashless payments, from Apple Pay to credit cards, you can’t go wrong with cash. (So long as you have smaller bills, at least.)
Plus, an electrical outage won’t bar you from spending your physical bills.
I prefer to use cash for smaller purchases, like coffee. If you’re leaving tips abroad, you should also have some small bills on hand.
Just make sure to keep your cash safe in your hotel room—and always break those larger bills. Not only are they easier for vendors to change, but you won’t be as upset if you lose a $5 bill compared to $50.
What’s the best way to exchange currencies?
Again, you don’t need to spend only in cash on your next vacation—that would be flat-out insane. But how should you exchange your dollars?
Remember, currency exchange rates are constantly changing, so you need to pay attention to conversions just as much as the rates offered by currency exchange businesses.
Here’s my advice:
- Start with your bank. They’ll help you out without adding on fees, which means you’ll get the precise exchange rate conversion when transferring your dollars into another currency. Just make sure to call ahead to see if your bank has the notes you’re looking for. While most banks have euros and pounds on hand, that’s not the case for more unique bills.
- Exchange your cash locally—but not at the airport or in touristy centers. If you weren’t able to make it to the bank on time, don’t worry. Most cities offer reasonable exchange rates—outside their tourist hotspots, at least. When I exchanged my dollars for euros in 2018, I did so in a neighborhood outside the city center. That got me a slightly better exchange rate than what was offered in the touristy area. But avoid those airport kiosks at all costs—they usually charge the highest fees.
- Ask for small bills. I’ve touched on this a few times in this article, but I highly recommend requesting small bills when you exchange your dollars. Smaller bills are easier for vendors to handle, letting you use those bills whenever you need to. On top of that, you won’t be nearly as upset by misplacing (or being robbed of) a small bill compared to a large one.
What about using credit cards?
I’ve lived in Barcelona for six years now and I still use my Bank of America travel rewards card. The sole purpose of that card is for me to charge larger expenses here in the city, from a sailboat tour with friends to a fine dining experience.
Though I also have a local bank account and debit card, I still like to charge things on my credit card now and then.
Given it’s a travel rewards card, I don’t have to pay any international transaction fees. That should be your main priority when using credit cards abroad: avoiding those small fees that will add up by the time you’re heading home.
That brings me to my next point about spending on credit cards while traveling: always pay in local currency. When a vendor hands you a POS device, you’ll be prompted about whether to pay in the local currency versus dollars. While it’s probably tempting to pay in dollars, the conversion won’t work in your favor. Always go local.
