How to Save on Currency Exchange Rates When Studying Abroad

Table of Contents

• How Can International Students Save On Overseas Money Transfers?
• 1. Understanding Currency Exchange Basics
• Exchange Rate Fundamentals
• Factors Influencing Exchange Rates
• 2. Choosing the Right Financial Institutions
• Banks vs. Currency Exchange Services
• International Student Accounts
• 3. Timing Your Currency Exchanges
• Monitoring Exchange Rates
• 4. Utilizing Currency Exchange Tools and Apps
• Currency Exchange Platforms
• Budgeting and Expense Tracking Apps
• 5. Minimizing Fees and Hidden Costs
• Understanding Fee Structures
• Avoiding Dynamic Currency Conversion
• 6. Practical Tips for Daily Transactions
• Using Local ATMs
• Cash vs. Card Payments
• Conclusion
• FAQs For International Students To Save On International Money Transfers

International students studying abroad have their share of challenges. From blending in into a new culture and life to finding student accommodation that feels like home to understanding the financial differences of their host country, it can become a bit intimidating.

If you are an international student, one of your top concerns is moving money abroad, albeit without incurring exorbitant fees and getting bad exchange rates. A good understanding of currency exchange rates and choosing the best option to transfer money abroad will help you save time and money.

Do not let currency exchange challenges cause you and your family to bleed your precious resources and money. We are here to give you a comprehensive guide on how to save on currency exchange rates while you are studying abroad.

How Can International Students Save On Overseas Money Transfers?

Welcome to our ultimate guide on saving currency exchange rates when studying abroad. The information we present in the following sections can help you manage and transfer money abroad without any hassles.

Let us dive straight in!

1. Understanding Currency Exchange Basics

Understanding the basics of currency exchange will help you manage your finances and navigate the complexities of living abroad as a student.

Exchange Rate Fundamentals

Before getting deeper into the nuances of international money transfers, you must understand the basic fundamentals of currency exchange.

Exchange rates determine how much of one currency you can exchange for another. They are always expressed as a ratio of how much one unit of a currency can be exchange for another.

For example, if the USD/INR exchange rate is 84.2354, then it means that 1 US Dollar is worth 84.2354 Indian Rupees.

Exchange rates are usually represented as a ratio of the value of a single unit of one currency to purchase another currency. For example, 1 EUR = 63.2210 PHP means that you can buy 63.2210 Philippine Pesos with 1 Euro.

Factors Influencing Exchange Rates

Learning the key factors that influence these exchange rates will help predict and respond more effectively to currency fluctuations.

Interest rates, inflation, political stability, and economic performance are common factors affecting and fluctuating changes in exchange rates.

A basic understanding of these factors may help you avoid instable periods or take advantage of more favorable times to send money abroad. In fact, you can consider these even before moving to your study abroad destination and prepare accordingly.

2. Choosing the Right Financial Institutions

By choosing the right financial institution, you can get much better currency exchange rates which, in turn, will save you more money by buying more foreign currency for the same amount of your domestic currency.

The 2 most popular options for international money transfers are banks and money transfer companies; let us look at them both below.

Banks vs. Currency Exchange Services

Banks offer convenience and security, and tend to be a popular choice for many students to fund their overseas education. The problem, however, is that banks charge high fees and provide very low exchange rates. This makes a major dent in your and your family's hard earned money.

Whilst banks are certainly an option to send money abroad, we generally do not recommend them as they provide low exchange rates and charge high fees.

On the other hand, dedicated currency exchange services, also called money transfer companies or operators, usually provide much better rates and charge lower transfer fees. They also have more flexible options when it comes to methods to pay in and pay out.

Also, due to highly competitive nature of the international money transfer market, you have greater flexibility to find better currency exchange rates.

While looking for the most compatible currency exchange service provider, you can always rely on RemitFinder to find you highly reputed international remittance service providers.

International Student Accounts

Some banks offer special international student bank accounts that sometimes come with perks like rewards, cashback and lower fees on international transactions. After doing some research and comparison, you can find such banks that are perfect for all your needs.

However, make sure to go through all the fees they charge, their availability, and quality of service. Do your research thoroughly and for any queries, contact the bank to learn if their service might be useful for you.

3. Timing Your Currency Exchanges

The timing of your transactions also matters; it helps you find the best times to send money abroad. Read more to understand how and when to go for your next currency exchange.

Monitoring Exchange Rates

Learn how to monitor exchange rates. It will help you understand the best times to convert your money and tap into deals from time to time. Whilst you can monitor various money transfer companies manually, it will take time and effort to do so.

A much more efficient way to do this is to rely on RemitFinder's online money transfer comparison platform. RemitFinder compares numerous remittance companies and helps you make better decisions by giving you maximum knowledge about available choices.

To be always on the lookout for the best exchange rates and deals, you can subscribe to an exchange rate alert.

RemitFinder, for instance, provides a free exchange rate alert service that you can use to stay updated at all times. The rate alert is free of cost and can be delivered through emails and/or mobile app push notifications to you.

4. Utilizing Currency Exchange Tools and Apps

The internet is flooded with apps that can help you find the best way to do your exchange. These apps and platforms are highly advanced, and designed securely to improve transaction processing and protect your information.

Currency Exchange Platforms

Numerous online platforms and apps are designed to help you get the best exchange rates.

Money transfer services like Western Union, MoneyGram, Remitly, TransferWise (now Wise), Revolut and many others offer competitive rates and lower fees than traditional banks.

Budgeting and Expense Tracking Apps

Use budgeting and expense tracking apps to effectively manage your finances like your student accommodation rent, bills and other expenses.

For example, Amber Student is one of the leading student accommodation platforms, established in 2016 and serving over 80 million students globally.

Additionally, financial apps like Mint or YNAB (You Need a Budget) can help you keep track of your spending and make informed decisions about currency exchanges.

5. Minimizing Fees and Hidden Costs

Another important aspect that you want to keep an eye on is fees. Always find ways to reduce the impact of fees on your transactions, and be aware of any hidden costs.

Understanding Fee Structures

Different financial institutions have varying fee structures. Understanding these fees, including transaction fees, withdrawal fees, and service charges, is essential to minimizing costs. This can help you avoid hidden charges and get the most value from your transactions.

Avoiding Dynamic Currency Conversion

When making purchases abroad, always opt to pay in the local currency instead of your home currency. Dynamic currency conversion can result in poor exchange rates and additional fees.

As an international student, always try to make purchases and payments in local currency to avoid currency exchange which may come with fees and unfavorable exchange rates.

6. Practical Tips for Daily Transactions

There are additional tips and tricks that you can take in your daily life for saving money as an international student. Little savings add up over time, so check these out below.

Using Local ATMs

Look for local ATMs that offer the best exchange rates and the lowest fees. Some banks may have partnerships with foreign banks, allowing you to withdraw money without incurring additional charges.

Cash vs. Card Payments

While cash might sometimes offer better control over your spending, using a credit card can be more secure and provide better exchange rates. Research the best travel credit cards that offer low foreign transaction fees and favorable exchange rates.

Credit cards have many advantages that can help you find the ideal way to save and earn rewards, which you can claim later.

Also, make sure you pay your credit card due on time and pay off the full amount. This practice is helpful to avoid interest charges and fees while building your much needed credit history in a foreign country.

Conclusion

Saving on currency exchange rates requires a combination of knowledge, planning, and smart financial tools. Once you understand, you can make the most of your money while studying abroad.

First and foremost, make sure to do ample research when choosing who to send money with overseas. Banks will usually charge significant fees and provide much lower exchange rates, so we recommend relying on money transfer companies to send money abroad.

Also, lookout for various financial apps and services to continue to find ways to save money. Study fees of every financial service you use really well to avoid hidden charges.

Finally, always try to pay in local currency instead of your home currency to avoid currency exchange on the fly, which can attract high fees and bad exchange rates.

With some research, planning and knowledge, you can avoid losing money when studying abroad.

FAQs For International Students To Save On International Money Transfers

Here are some Frequently Asked Questions (FAQs for international students who want to save money on international money transfers. Knowing the answers to these questions will help you maximize the return of your money.

1. What are the best ways to get favorable currency exchange rates?
As an international student, we strongly recommend that you avoid currency exchange at the airport. Instead, look for better ways like money transfer companies to move your funds overseas.

2. Do I only get cash while exchanging currency?
No, when you first ask for currency exchange in a foreign country, you have the option to get both cash and a cash card or credit card. If choosing to get your funds added to a card, make sure to look for a no transaction fee cash or credit card.

3. How can I minimize the impact of fluctuating exchange rates on my budget?
To minimize the impact of fluctuating exchange rates, consider converting larger sums of money at once to take advantage of favorable rates. Budget your expenses in advance and use multi-currency accounts to manage your money across different currencies, reducing the need for frequent exchanges.

4. Can I use my debit card to pay for an international money transfer?
Yes, you can generally use your debit card when making an international money transfer. Most remittance companies support paying for your overseas funds transfer with a debit card. In fact, a debit card usually incurs low, or often no, fees and is one of the safest ways to pay for your transaction.

5. How can I avoid high fees when exchanging currency?
To avoid high fees, research and choose financial institutions or services that offer low or no foreign transaction fees. Use online comparison tools to find the best rates and avoid dynamic currency conversion when using ATMs abroad.

Do You Need To Find the Best Remit Exchange Rate for Sending Money Internationally?

RemitFinder is an online service that helps you track remit exchange rates. By checking and comparing the latest remit exchange rates, you can get the best exchange rate for your money transfers. RemitFinder, thus, helps you to get the best return for your hard-earned money.

Find the cheapest rate to transfer your hard-earned money - visit our site or download the app on Google Play or Apple App Store now.