Cash In Europe: New Travel Money Tips For 2025
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I usually get travel questions about which cities to visit or what time of year is best for a particular destination.
But after all those major when, where, and what to do questions are answered, the topic always turns to money, money, money. 🤑
AND IN THIS AGE OF MOBILE PAYMENTS, CHIP AND PIN CARDS, AND THE DEMISE OF CASH, THE TRADITIONAL ADVICE ABOUT TRAVELING AND MONEY IS QUICKLY BECOMING OUTDATED.
Below is a quick explainer on cash in Europe, including how to understand exchange rates, the best way to exchange currency in Europe, and where to find the best cash currency exchange rates.
The good news — a wealth of digital tools have simplified much of the hassles of traveling through different currency zones.
The bad news? Ignoring some basics could end up costing you a lot of money in hidden fees.
(I KNOW BECAUSE I USED TO MAKE THESE MISTAKES ON THE REGULAR, AND I WANT TO HELP YOU AVOID THEM DURING YOUR NEXT TRIP ABROAD.)
Cash In Europe: New Travel Money Tips For 2025
Currency for Europe
The euro was introduced on January 1, 1999, replacing the historical national currencies of major western European countries like France, Germany, Italy, and Spain.
Over the next twenty years, the Euro was adopted by other countries, like Greece, Slovakia, and most recently, Croatia.
THE EURO HAS MADE TRAVEL THROUGH EUROPE MUCH EASIER BY REDUCING THE FREQUENCY OF CURRENCY EXCHANGES.
Exchanging money has gotten a lot easier in the digital age, but there are still some methods that come with lots of hidden fees.
THERE ARE STILL LARGE AREAS OF EUROPE WITH THEIR OWN CURRENCIES, THOUGH.
The United Kingdom uses the pound sterling, and Switzerland retained its own Swiss Franc.
And if you’re traveling through the Nordics, Eastern Europe, or the Balkans, then be prepared for an array of different national currencies greeting you in each new country.
Currency Map of Europe
SOMETIMES IT’S EASIER TO SEE A VISUAL REPRESENTATION OF INFORMATION.
Below is a map that shows which countries use the euro, and which countries still use their own national currencies.
Most of the Nordics, except Finland, use their own currency, while in Eastern Europe, most countries besides Slovakia are holding onto their old currency.
How to Understand Exchange Rates for Travel Planning
Currencies are a store of value and are always rising or falling due to various economic factors.
Exchange rates describe the value of one currency relative to another.
COMMON PHRASES LIKE “A STRONG DOLLAR” MEAN THAT THE DOLLAR IS WORTH MORE THAN OTHER CURRENCIES.
But be careful - exchange rates are always relative; a strong dollar relative to the euro may actually be weak against some other foreign currency.
To avoid returning home with leftover foreign currency, try to budget your cash expenditures for each day of your trip.
UNDERSTANDING WHICH CURRENCIES YOU’LL ENCOUNTER ON A VACATION IS KEY TO TRAVEL PLANNING AND BUDGETING.
Research the current exchange rate between your home currency and the currency of your destination.
This will help you to understand how much your home currency is worth in the local currency of your destination.
Two good online tools for researching exchange rates are XE Currency Converter and OANDA Currency Converter.
AND ASIDE FROM EXCHANGE RATES, IT’S ALSO IMPORTANT TO UNDERSTAND COST OF LIVING DIFFERENCES BETWEEN YOUR HOME AND A DESTINATION.
These differences will impact everything from the cost of a taxi to a cup of coffee.
Numbeo is a tool that quickly compares the cost of meals and transport between two cities.
Should I Exchange Money Before I Travel to Europe?
No.
I know that the anticipation of a trip to Europe can make you want to go over and above with preparations, but it’s not necessary, nor is it a good idea, to exchange money before traveling to Europe.
EXCHANGE RATES AREN’T GREAT IN THE U.S., SO YOU’LL END UP PAYING UNNECESSARY FEES IF YOU SIMPLY MUST HAVE EUROS BEFORE YOU LAND IN EUROPE.
Wait until you get to Europe to buy euros.
Exchanging Currency in Europe
THE QUICKEST AND EASIEST WAY TO EXCHANGE DOLLARS FOR LOCAL CURRENCY IN EUROPE IS TO USE A LOCAL ATM.
Most debit cards issued today are internationally compatible - usually having a Visa or MasterCard logo this means that it will work internationally.
At the ATM, the cash withdrawal transaction will proceed as normal until the moment where you’re prompted to select either local currency or home currency.
This is where you’ll choose the local currency.
THE BANK WILL AUTOMATICALLY CONVERT THE LOCAL CURRENCY INTO A US DOLLAR AMOUNT - IT’S THAT CONVERTED USD AMOUNT THAT WILL SHOW ON YOUR ACCOUNT STATEMENT.
It may sound too simple to be true, but ATM withdrawals really are the best way to buy euros in Europe.
A few things to keep in mind:
Bank-affiliated ATMs are the most reliable. Avoid using ATMs that are not affiliated with a bank, like Euronet or Travelex, as these charge high fees and convert money at less-advantageous rates.
Most ATMs in Europe have a language option so that you can easily navigate the menus. I understand that feeling of getting off the plane and wanting to try out your rusty French or Italian skills, but save that excitement for the coffee counter or directing the taxi. Money matters are not the arena in which to put your high school language skills to the test!
Pay attention and be sure you don’t choose “home currency.” For one, U.S. dollars won’t do you any good in Italy, and second, the bank will charge a currency conversion fee.
Exchanging money always incurs fees, so try to minimize the number of times you do it during each visit.
Finally, check whether or not your bank charges fees for using foreign ATMs prior to your trip.
If they do, increase your withdrawal amount and minimize the number of ATM transactions during your stay.
I highly recommend Charles Schwab Bank’s checking accounts, which refund all ATM fees worldwide for its account holders.
Frequently Asked Questions about International Traveling and Money
But Can’t I Exchange Money at the Airport?
CURRENCY EXCHANGE COUNTERS AT AIRPORTS AND IN TOURIST SHOPPING DISTRICTS MAY SEEM CONVENIENT, BUT IT COMES WITH A PRICE.
They’re notorious for high fees and bad exchange rates.
Bank exchange rates, like the ones found at bank-affiliated ATMs, are less expensive than the exchange rates charged by currency exchange kiosks.
You should avoid currency kiosks in airports, but be on the lookout for reputable, bank-affiliated ATMs in airports, too.
Why is that?
THE BUSINESS MODEL OF CURRENCY EXCHANGE KIOSKS IS ENTIRELY BASED ON MAKING MONEY FROM CURRENCY EXCHANGE, SO THEY’RE INCENTIVIZED TO CHARGE FEES AND EXCHANGE MONEY AT BAD RATES.
Expect them to have signs proclaiming that they offer the best rates and no fees - just don’t believe them.
Do Travelers Cheques Still Exist?
Traveler’s cheques used to be a popular and secure way to travel with money minus the risks of cash.
Today, though, travelers cheques are more of a hassle to buy and redeem.
IT’S A LOT EASIER TO VISIT A LOCAL ATM ONCE YOU ARRIVE AT YOUR DESTINATION AND QUICKLY WITHDRAW CASH IN THE LOCAL CURRENCY.
Do I Need to Notify My Bank of Travel?
Speaking of ATMs, you’ll want to make sure that using them in a foreign country doesn’t set off a wave of fraud alerts or, even worse, the freezing of your account altogether.
You can prevent this sort of account interruption by simply notifying your bank about your upcoming travels.
THE PROCESS VARIES BY BANK, BUT CAN TYPICALLY BE DONE ONLINE OR BY CALLING YOUR BANK'S CUSTOMER SERVICE NUMBER.
Just provide them with your travel dates and destinations, and they will make a note on your account to expect transactions from those locations.
This can give you peace of mind and ensure that you have access to your money while you're away.
Conclusion
EXCHANGING CURRENCIES CAN SEEM DAUNTING TO FIRST-TIME INTERNATIONAL TRAVELERS.
But with a little planning and the right currency exchange methods, it can be a painless process that ensures you have enough cash in Europe’s notoriously cash-happy capitals.
Happy vacation planning!
Until next time,
Angela
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