For students wanting to pursue higher education abroad, this exciting adventure can unfold bringing in a plethora of opportunities. However, one of the most important things for students to keep in mind is currency exchange. Managing finances in a foreign country can be challenging, especially if a student is not familiar with the local currency of the country and exchange rates. In this article, we’ll share everything students need to know about currency exchange.
Understanding Currency Exchange: A Brief Introduction
Currency exchange is the process of converting one currency into another. For instance, if a student from India is studying in the United States, he/she will need to convert Indian Rupees into US Dollars to pay for your tuition fees, living expenses, and other bills. Currency exchange rates vary from day to day, and they depend on various factors, including the supply and demand of currencies, geopolitical events, and economic indicators. As a result, it’s essential to keep an eye on the exchange rates and ensure that one is getting the best deal.
Why Do Students Have to Exchange Currency?
The initial pain points for all students wanting to go abroad start with paying fees and other expenses through forex. Here are some reasons why they need to exchange currency:
- Students typically apply to 5-6 universities of their choice, some even require application fees. Upon acceptance, some universities require the admission fee that has to be paid through wire transfer.
- After receiving an offer letter, students need to apply for a VISA and pay tuition fees, which can be paid in full or partially again through wire transfer.
- For day-to-day expenses, students need foreign currency abroad. A forex card is highly recommended as it is cheaper and easily reloadable. On the other hand, currency notes may be used for small expenses
Currency Exchange Tips for Students Wanting to Study Abroad
As a foreign student studying abroad, it is important to understand the currency exchange process to ensure that one is getting the best value for your money. Here are some important tips for currency exchange and how to save money while exchanging foreign currency:
- Before exchanging your currency, it is important to know the current exchange rates for a currency. Exchange rates are dynamic, and it is essential to keep track of them to ensure that you are getting the best deal
- Students should make it a point to compare rates amongst different currency exchange providers. It is important to remember that the exchange rate is one of the biggest factor to consider when choosing a currency exchange provider
- Students may have to go abroad for preliminary processes while applying to the university of their choice. It is wise to be a bit more proactive and exchange currency in advance through a reputed forex provider rather than exchanging currency at the airport
- Students’ use of an ATM to withdraw money while abroad can prove expensive due to transaction fees and unfavorable exchange rates. It is always advisable to carry a mix of foreign currency notes for smaller expenses and a forex card for bigger expenses and avoid using ATM
- Students must plan and estimate expenses for the entire duration before traveling. This could include lodging, food, educational expenses, entertainment and travel. It helps setting aside a predetermined budget for the stay duration and calculating the forex required
- Dubious currency exchange providers may charge hidden fees, such as commission fees, transaction fees, and service fees. It is important for students to understand the fees associated with the currency exchange before making a transaction
Choosing the Right Currency Exchange Provider
When it comes to currency exchange, students going abroad have several options, including banks, online currency exchange marketplaces, and local money changers. Each option has its pros and cons, so it’s crucial to choose the right forex provider based on your needs and preferences. Here’s a quick overview of the different types of currency exchange providers:
- Banks: Banks are a safe and reliable option for currency exchange for students, but they may charge high fees and offer unfavorable exchange rates
- Local money changers: Local money changers, also known as currency exchange kiosks or bureaux de change, are common abroad and at airports. They may offer competitive rates, but students need to exercise caution, as some of them may be fraudulent or charge hidden fees
- Online currency exchange platforms: Students should opt for foreign exchange providers such as BookMyForex offer competitive exchange rates and can be a cost-effective, digital and paperless way to exchange currency. Our services typically charge lower fees and offer better exchange rates compared to traditional banks and currency exchange providers.
Why is it Important for Students to Avoid Currency Exchange Scams?
Unfortunately, currency exchange scams are prevalent, especially in foreign countries and foreign airports. Scammers may offer attractive rates or promise to waive the fees, but they can easily trick gullible students in giving them more money than they should. For students traveling abroad avoiding currency exchange scams is important. Here are some tips:
- Avoid exchanging money with unknown people or unlicensed money changers
- Count the money carefully and make sure to receive the correct amount
- Keep transaction receipts and report suspicious activity if any to authorities
Traveling Abroad as a Student? Avail the BookMyForex Forex Card
International students may find it challenging to calculate exchange rates and determine how much cash to carry when leaving home. The solution to these challenges is a Forex Card, which is simple yet effective.
A Forex card is a prepaid card that allows you to deposit funds in the currency of your host country. It is considered one of the most convenient payment methods, particularly when traveling abroad or studying overseas. Forex prepaid cards are beneficial to international students for their foreign expenses and international travel.
By having a Forex travel card such as the BookMyForex prepaid travel card, students can make payments worldwide without worrying about currency exchange fees or ATM cash withdrawals. With this magnetic stripe card in hand, students can easily handle finances without any hassle. They can avail the same at the best rates without extra charges and can access its usage through the BookMyForex app.
International students often feel unsure about their safety when visiting their host country, especially when it comes to managing their finances. Carrying too much or too little cash can be risky, which is why the BookMyForex forex card is a secure and reliable solution that provides all the security mechanisms of a credit/debit card.
Forex cards are incredibly convenient for international students as they eliminate the need to carry cash or search for ATMs. They work with the same POS machines as debit and credit cards, fit easily into a wallet, and can be reloaded with ease using the smartphone app.
Forex cards are an excellent solution to the exchange rate problem faced by international students. They protect cardholders against daily market fluctuations, ensuring that there is no loss from transferring money from day to day. Additionally, they spare students from expensive exchange rates and transaction costs when using POS machines or ATMs in foreign countries.
In conclusion, by avoiding exchange offices with high fees and unfavorable rates, doing research on currency exchange rates, using a forex card, shopping around for the best deals, and being aware of any hidden fees or commissions, students can get the most value for their money while studying abroad. With these tips in mind, students can definitely have a more enjoyable and affordable study experience.