Currency Exchange Strategies for Studying in Expensive Destination: Studying abroad at your dream university is very easy these days if you plan it properly. Education loans to study abroad, schemes by the government, scholarships etc make it possible to get admission to a reputed university abroad without any hassle. As we are talking about a proper plan to study abroad it is very important to understand the major factors like loans, international money transfer, forex card and its working etc. In this blog, we are providing you with all the important information on currency exchange strategies especially if you want to study in an expensive city abroad like Oxford, New York etc.
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What is Currency Exchange and Why it is important?
Currency exchange is the process of converting one currency into another at a particular exchange rate. It is essential for facilitating international trade and investment, as it enables businesses and individuals to transact in foreign currencies. Currency exchange is important for maintaining economic stability and managing exchange rate fluctuations, which can impact trade, tourism, and foreign investment. As an international student, you must understand the currency exchange and the forex rates. This will help you in developing strategies for studying at expensive destinations.
Strategies for Currency Exchange while Studying in Expensive Destination
When you study in a foreign country you come across circumstances where you need to exchange your currency with the local currency of the country where you are living. Currency exchange can sometimes attract huge costs such as commissions and transaction fees, thus making it expensive. Hence, you need to make smart strategies while dealing with currency exchange. Let’s understand some effective strategies of currency exchange when living in an expensive country:
Research and Planning
When you start your detailed planning to study abroad, always invest maximum time in the research of the currency of the country where you want to study. You need to check the exchange rate and recent exchange rate trends. Having a solid understanding of the local currency and its historical performance can help you make informed financial decisions. It is necessary to understand the expenses which you need to do in the currency of that particular country. Calculate your total estimated cost in foreign currency and then compare it with the local currency i.e. INR.
Also Read: How to Get a Forex Card
Open a Multi-Currency Bank Account
A multi-currency bank account is a type of demand deposit that allows you to do transactions in more than one currency with a single account. You can also hold your money in the account of multiple currencies. You can consider opening a multi-currency bank account which will be beneficial for managing expenses in both your home currency and the local currency. This will help you to save your expenses while transferring money from one country to another. However, you should always check with your bank about how many foreign currencies they are offering to transact with. Every bank does not have all the major currencies. For example, the State Bank of India offers holding 3 types of currencies i.e. USD, GBP and EUR.
Set a Budget
Create a realistic budget for your study abroad period. Make a proper list of expenses towards the tuition fee, accommodation, living expenses, and a buffer for unexpected costs. This will help you control your spending and avoid unnecessary currency exchange. However, always be ready with arrangements through which you will be able to get money transferred abroad at the cheapest cost. Contact the merchants or banks who offer the lowest exchange rates and get money transferred in small amounts as large amounts will attract more transaction fees.
Use Forex Cards
Prepaid Forex cards offer the convenience of carrying local currency without the risk of carrying cash. They often offer competitive exchange rates and can be reloaded as per the requirements. Forex cards offer numerous benefits for students, including convenience, security, and cost-effectiveness. They allow users to load multiple foreign currencies onto a single card which provides flexibility and protection against currency fluctuations. Forex cards are widely accepted at ATMs and merchant locations worldwide, reducing the need to carry large amounts of cash.
Avoid Airport and Hotel Exchanges
Exchange rates at airports and hotels are generally less favourable than those at local banks or currency exchange offices. It’s always good to exchange currency in your home country or abroad. Always avoid currency exchange at an airport as they always charge high exchange rates and the transaction fee is also very high. You can get your currency exchanged at any merchant situated in the country where you are going to or in your home country.
Also Read: Best Forex Cards for Students
Local Banking Services
Consider opening a bank account in your study destination. This can reduce transaction fees and provide you with local banking services for smoother financial management. For example, if you are studying in UK you must open a local bank account there with banks offering special schemes for international students. This will help you a lot in managing your day-to-day expenses without any transaction fees.
Online Transfer Services
Transferring money digitally is the most preferred option these days. One of the most popular modes of international money transfer is the Wire Transfer. You can always get your money transferred through wire transfer services by paying a nominal fee. If you want to transfer money through other modes you can use money transfer services like TransferWise (now Wise) or Revolut to transfer money between your home country and the destination. These services often offer competitive exchange rates and lower fees.
FAQs
Both the thing has its own advantages and disadvantages. However, in order to get a favourable exchange rate you can exchange your currency abroad.
There are several foreign banks that offer special schemes for international students. A local bank account in a foreign country will help you manage your finances in an efficient manner. You will be able to use the local atm card to do day-to-day transactions.
As per the feedback from various users, Fridays and Saturdays are the best days for currency exchange.
This was all about the Currency Exchange Strategies for Studying in Expensive Destinations. Studying in an expensive destination can be financially challenging. You should always be careful with your planning. Always research properly and make the right currency exchange strategies in order to manage your finances effectively. By staying informed, setting a budget, and making use of various financial tools and services, you can make the most of your study abroad experience hassle-free.
To know more about the currency exchange, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience. Follow our social media handles on Twitter, LinkedIn and Instagram.
