How To Think In A Different Currency When Traveling

Do You Need a Calculator Out For Every Purchase You Make in a Different Country?

As you explore all the fun you’ll have on your vacation, one topic that may come up as you make your reservations and arrangements is money. Not the overall budget but the exchange rate you’ll encounter during your travels. Not only may you discover that the exchange rate makes it feel like you’re handing over thousands of dollars (if you’re an American or someone from a country with a similar economic system).

For example, when I traveled to Vietnam, I exchanged my American dollars for the local currency, the Vietnam Dong. The exchange rate is such that $20 in US dollars is around 500,000 Vietnamese dong (as of this 2024 writing anyway). So, if you have lunch, you might find yourself handing over a monetary note that looks absolutely huge. But in Vietnam, that 500,000 note isn’t “huge” in the general sense of the word.

There are a few tricks you can use to get used to using the notes of a different country. These tricks can come in particularly useful when the notes are of a totally different sort of number. Like, sometimes you’ll encounter notes that are in the thousands, but when you translate those thousands into US dollars, you’ll find that you’re holding just a few bucks.

Understanding the value of the money you’re holding is also a good idea when you’re traveling somewhere where people regularly bargain with one another. If you’re shopping for trinkets in a market where the bargaining culture is heavy, you don’t want to accidentally hand over something that’s way too large for the purchase. Conversely, you don’t want to insult whoever it is you’re talking to with a tiny amount of money that’s not worth the purchase.

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Choosing a Value That’s Easy to Remember

I’ve found that the easiest way to figure out how much money you’re holding when you’ve got a stack of foreign currency is to find the note that’s closest to a $20. You can use this method for Euros, too, and probably Canadian and Australian money. But let’s use American dollars as an example here. If you think about it, $20 in the United States is about the cost of lunch for one person at a moderately priced sit-down restaurant.

Well, at this point, it can cost you $20 just to go to McDonald’s, but you get the idea. Now, take that $20 and figure out the equivalent bill in the foreign currency you’re exchanging for your trip. As I mentioned above, with the Vietnamese dong, one 500,000 note in Vietnamese money is about $20. Therefore, a 250,000 note is about $10, and a $100,000 note is about $4.

Understanding these conversion values not only helps make sure you don’t go over your budget when it comes to local purchases but also helps you figure out how much money you might need for your trip. In some cases, you’ll have zero issues using credit cards for almost everything. Sometimes, the good exchange rates offered by credit card companies mean direct purchases in another currency are the most affordable option.

However, if you’re in a country where credit cards aren’t common or they’re not used for small transactions like food and local transport, you’ll want to understand how much money you’re carrying in your pocket. You don’t want to head out with a bunch of 500,000 Vietnamese dong notes in your pocket when the purchases you’ll make during the day will only be around 50,000 Vietnamese dong. Some vendors might not have enough change when you hand over a big note.

Getting a Good Idea of the Average Prices for Goods & Services

Once you’ve figured out how much a particular denomination is when compared to your home currency, you’ll want to conduct some research on the average prices for the purchases you expect to make during your travels. The most common cash purchases you’ll make will be food and local transport, and you may also hand over money for tips and souvenirs.

In most cases, you’ll have already booked your hotels and bought your flights, so you won’t need to figure out how much money to have for those costs. If you’re making arrangements for your trip before you go, there’s a good chance you’re paying for those items up front, or you’ve been quoted in your home currency on whatever website you’re using.

But beyond those known costs, you’ll definitely want to search for information on how much the average meal or whatever might cost in your destination country. Be aware that you might end up finding different opinions on the normal costs for things, so it’s important to read a few different sources to get your average prices. Checking the posting date can help when you’re reading a forum post on a thread about a topic that interests you. If the data is from 10 years ago, it might no longer be accurate.

For my upcoming trip to Morocco, I’ve found numbers that range from $5 for a cheap lunch to $20 for a pricier restaurant. These are the figures I’ve used for budgeting, so I’m aware of how much money I’ll need to bring to the country. I don’t want to arrive without enough cash, so I’ve looked up average prices for all the things I expect to pay for (that I haven’t already booked).

Using Credit Cards Without Paying Too Much

I like paying for things with credit cards when I travel for multiple reasons. Not only are credit cards a safer option than carrying around a bunch of cash in your pocket, but they’re easy to cancel should your card get stolen. You can’t cancel a bunch of paper money that was stolen. You’re generally just out of luck when it comes to petty theft and crime, which you may experience anywhere on the planet.

However, before you travel to another country and use your credit card there, it’s important to take a look at the terms and conditions of the card. Some card companies charge an extra fee when you make a purchase in a currency type that isn’t associated with your card. If you have an account that’s measured in US dollars and you swipe your card in a country that uses Euros, you could see an added charge on your account.

If you can’t figure out whether your card company charges a fee for exchanging money, just give them a call. They’ll be able to tell you immediately about their policy, and you won’t need to scour a 20-page user agreement. Further, you can let the card company know about your impending travel dates, which should ensure you don’t experience a card getting declined while in another country.

Don’t forget to do your homework as far as the exchange rate goes, too, when you use credit cards. Even if you’re not handing over an actual piece of money, you’re still paying for something in a different currency. Make sure you understand the exchange rate so you have a basic idea of how much a souvenir or meal is costing you and you aren’t carrying around too much money, which could be dangerous.

Having Some Money Ready For Scheduled Activities

One good life hack for handing over the right amount of money for a particular event or purchase is researching the price of whatever it is you intend to buy and leaving your hotel, motel, or B&B with not much more in your pocket. Many restaurants these days have menus and prices online, so you can often figure out how much you’ll need in your pocket before you even leave for the restaurant.

Not only is it safer to carry no more than you need, but it reduces the chance you might accidentally hand over the wrong amount of money. You’d be surprised how tough it can be to add up thousands of some type of currency when someone is waiting patiently for you to pay for your item, meal, or whatever. You might find yourself getting a little nervous or flushed because you’re just not used to counting up a completely different type of money.

Therefore, if you’re headed out somewhere and expect to pay the equivalent of $20 for something, don’t take all the money you’ve brought with you to the country. Just put something like $30 in your pocket. Just enough for the meal, a tip (if the country actually tips), and any small unknowns along the way.

Honestly, there are very few circumstances where, during a carefully planned itinerary, you’ll encounter the need to have a lot of extra money in your pocket. For the most part, your trips from your hotel or B&B will be totally planned out, so you’ll have a good idea of the amount of money you’ll need to carry along the way.

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