The Canadian dollar has been rebounding over the last month or two. You know what this means: you can get more for your loonies when you’re exchanging them for U.S. dollars, British pounds and euros. Yes, your loonies and toonies can go further in foreign land.You just need to be careful about currency exchange – you know how expensive it can be.
Whether you’re jetting off to south of the border for the weekend this summer or you’re planning an adventure to Northern Europe for autumn, you need to prepare for currency exchange. You want to maximize your dollar and you don’t want to lose it through fees or dubious rates.There are plenty of measures you can employ in advance, or even on the day of, so you don’t get fleeced when you’re exchanging currencies back and forth.
Here are five tips for exchanging your loonies for other currencies:
1. Use Your Bank in Advance
Some experts say that you should avoid getting foreign currency in advance. But if you want to avoid the hassle then it is best to get some euros, pounds of yuan weeks before your trip.
Moreover, the best place to perform these conversions is at your financial institution. The reason for this is because these transactions are free. Whether you’re converting dollars into yen or yen into loonies, you won’t need to pay an exorbitant fee. Just give them some warning.
2. Avoid Airport Currency Exchange Stores
One of the worst things you can do is to utilize a currency exchange facility at the airport. These stores charge you excessive fees and provide you with horrific exchange rates. Although it’s convenient, you should weigh the pros and cons before stepping foot inside these places.
3. Try to Pay with Your Credit Card
If you wish to avoid paying with cash, refrain from converting your currencies and keep track of every single currency exchange, you should try to pay with your credit card as much as possible.
Should this be your course of action, it is crucial to contact your financial institution or the credit card company and inform them that you will be using your credit card in the U.S., Italy, Belgium or South Africa.
By doing this, the only aspect you need to remember is not to go overboard and overbudget.
4. Keep Track of Exchange Rates in Real-Time
Thanks to smartphones, you can keep track of all of the exchange rates in real-time. Therefore, you know how much you’re getting when you convert your loonies into whatever foreign currency. This also helps when you’re attempting to perform the currency conversion in your head in the middle of a transaction (see below).
5. Figure Out Currency Conversions During Transactions
Yes, you want to have a good time on vacation, and you don’t want to pay too much attention to the exchange rate. That said, it’s always a good idea to know how much you’re spending.
One of the best measures to employ is to calculate the currency conversion during transactions.
For instance, let’s say $1USD is equal to $1.50USD. If you purchase a hot for $5USD then it costs five times $1.50, which equals $7.50 – that’s one expensive hot dog!
It may take some brain power at first, but it’ll eventually become second nature to you.