Money and insurance
Changing money for a trip: where it pays off and where it does not
How much cash to take, where to change it, and why the airport exchange desks are still full. With the sums done.
Tomás Berruezo 5 min Photo by Stephanie LeBlanc on Unsplash The question is not where to change money, it is how much you need to change. In most destinations the honest answer is: far less than you had in mind.
How much cash you need
| Destination | Cash |
|---|---|
| Western Europe, North America, urban Japan | Little: almost everything by card |
| Southeast Asia | Quite a lot: markets, transport and street food |
| Latin America | It depends on the country and the area, and it is worth checking beforehand |
| Africa and rural areas | A lot, and in small notes |
In the first row, changing money before you leave is almost always throwing money away. In the last one, not carrying it means missing half the trip.
Where to change, from best to worst
- Withdrawing at an ATM at the destination in local currency, which usually gives the best real rate.
- At an exchange office in town, comparing two or three.
- At your own bank before leaving, ordering it in advance.
- At the airport, which is the worst rate in the whole country.
- With someone who comes up to offer it in the street, which is not an option.
The small notes trick
In many countries, paying for a coffee with a big note is a genuine problem: there is no change. Asking for small notes when you exchange, or taking out amounts that do not come only as large notes, saves more inconvenience than any fee.
And what is left over when you come back
Changing a small amount back almost never makes up for the spread. Two better ways out: spend it at the departure airport, or keep it for the next trip if you are going back.
And for what you do pay by card, the fee you avoid for free is in paying by card abroad.
Frequently asked questions
Where is the best place to change money?
Withdrawing at an ATM at the destination in local currency, or at exchange offices in town. The airport usually gives the worst rate in the country.
How much cash should I take?
It depends on the destination: in Western Europe or urban Japan, little; in Southeast Asia or rural areas, quite a lot and in small notes.
Should I change money before I leave home?
Only enough for the first day if you are going somewhere cash is essential. For the rest, better at the destination.
What do I do with what is left over?
Spend it before coming back or keep it for the next trip: changing a small amount back almost never makes up for the spread.
