If we could dress up as international currency on Halloween, we would. Because dealing with foreign currency exchange and managing foreign currency savings is scary. Studying abroad will be the best few months of your life, but it will also most certainly be the most financially draining. The excitement of leaving for a foreign country is something that everybody must experience, but it can also be one of your life's most economically challenging periods. However, you can save money on foreign exchange while studying abroad to make it less stressful.
What is foreign exchange?
First, let us know what a foreign currency exchange is. Foreign exchange, sometimes known as forex, is the conversion of one currency into another. Supply and demand market dynamics determine the fluctuating exchange rates for all currencies. In other words, the value of a currency may be correlated with the value of the dollar or even a number of other currencies. The value of a country's currency may also be decided by its government.
Here are a few tips on how to save money in foreign currency
Saving money abroad while studying and budgeting as a student is very necessary. You have to learn how to deal with foreign currency, student forex and foreign currency savings. Dealing with international currency can get scary, but we have a few for you which will help you with foreign currency savings and currency exchange.
Monitor rates and buy forex from local vendors.
Before travelling abroad, one of the most critical factors you need to bear in mind is that buying foreign currency in India is a better choice than exchanging money abroad or using a debit/credit card which may help you with foreign currency savings. Make sure you compare and look for reasonable forex rates locally because, depending on the foreign currency you are interested in and the city you are in, the difference between one currency exchange company and another can easily be as high as 6%. You can now use online forex marketplaces to save time and avoid stress due to rate fluctuations. BookMyForex aggregates rates from multiple currency exchange vendors and banks. Online forex marketplaces like BookMyForex are competitive platforms where currency exchange vendors have to compete to provide the best forex rate to gain more business and thus give customers the best price.
Carry a Forex card while staying abroad
For anyone, a smart alternative would be to use a prepaid forex card abroad instead of a debit or credit card to handle day-to-day expenses. Forex cards are not only cheaper than rupee cards but much more economical than other forex products. These offer the additional benefit of student forex of being able to evaluate and compare forex rates with other forex and inter-bank rates of products. Many debit cards offer zero margins, but the underlying rates might not be interbank rates, and consumers may end up paying far more than interbank rates. You can buy a forex card on BookMyForex's portal.
Forex cards are accepted wherever Visa/Mastercard is allowed and it will help you save in foreign currency Such cards have no international transaction fees; they are pin-secured and even come with an insurance policy. This can help you with your foreign currency savings.
Check and compare money transfer rates and charges
Even insignificant changes in the currency exchange rate or forex rate would affect your overall budget, and managing foreign currency savings may become difficult. Many online money transfer platforms provide cheap currency exchange rates and save you a lot of charges.
You can get the money transfer done either through a bank, a category II authorised dealer or an online marketplace that is tied up with both – banks and AD-II players. You can choose a remittance service provider like BookMyForex, which will help you transfer money at the best rates and take appropriate remittance charges.
Monitor the forex rates regularly
Monitoring the forex rates regularly will help ypu save in foreign currency. Foreign exchange rates, or forex rates, are subject to substantial volatility and vary between various banks and other money changers. Therefore, you must remain fully aware of these volatile rates and use them to your advantage by purchasing when the prices are comparatively lower.
Learn about the forex charges
For foreign currency savings, you should be aware that there can be additional fees involved when exchanging foreign currencies. These unforeseen costs could take the shape of commissions, handling/flat fees, or transfer fees. Make sure to compute the foreign exchange rates and contrast them with the rate provided by your foreign currency exchange service in order to prevent hidden fees.
Get a local bank account as an international resident
Some of the most practical tips to save in foreign currency for anyone abroad are going to a local bank and opening a local bank account there, mainly if the period is a year or more. If you are a student studying there, the university may also suggest a student-friendly bank account that will solve the ATM fee issue upon withdrawals. In addition, this can prove to be very beneficial if you take up a part-time job and start earning. Taking up a part-time job would take a lot of burden off your shoulders. (you can check out this blog if you are looking for part-time jobs in Melbourne).
Now you do not need to worry about the fluctuating currency rates for international money transfers. As we mentioned earlier, you can buy a forex card on BookMyForex, which can save you from hefty charges and help you with foreign currency savings. BookMyForex is the world's first and largest foreign currency exchange marketplace that lets you find and exchange foreign currency at the best rates possible after comparing across hundreds of banks. These blogs will help you out if you need help with opening a student bank account in Australia or The United States.
Look out for fake currency
Many fraudsters employ the practice of counterfeiting money. If you want to guard against fraud, it's critical to become familiar with the appearance of the currency. Examining the watermark, the wording, the borders, etc., can help you spot counterfeit money. Always make sure to select reputable and reliable foreign exchange services.
Miscellaneous tips and tricks
Here are some more tips and tricks to help you save in foreign currency because everyone likes extra stuff!
- Keep an eye on exchange rates and look for a currency that is likely to appreciate in value.
- Be aware of the tax implications of saving in foreign currency and consult with a financial advisor or tax professional if necessary.
- Make sure you check all the details for any hidden fees included.
- Opening a multi-currency bank will help you in future.
Dealing with international currency and learning how to save money abroad, and learning about foreign currency savings can be hard. But we hope that this blog helped you to sublime your fear of foreign currency savings.