Money, money, money, money

Before we head overseas, we calculated how much cash we might need right at the beginning of the trip.  We need British pounds for the first 4 days, and Euros for the rest.

Several months ago we attended a travel lecture where the speaker suggested we follow the currency exchange rates on www.xe.com.  We know that the euro has been valued at between 1.21 and 1.34 dollars per 1 euro for the past 6 months.  The British pound has been valued at between 1.54 and 1.62 dollars per pound.  The idea was that we wait until the rates are as low as possible when we change some money.  Of course, you never know whether the rates will go up or down over the weeks, but luckily the exchange rates are near the low end right now.   I have to say, in all of our past travels I've never been very aware of the rates, so this has been an interesting exercise.

It's amazing to me that all of our little hotels require payment in cash.  They're all small family-run businesses, so that may be part of the reason.  All of the hotels say they require payment when we check in, but in reality they aren't too worried about having guests pay immediately.  After all, they do have all of your stuff in your room, so could hold your undies for ransom, if necessary.  Our apartment in Paris also requires payment in cash.  Our other three rentals accepted credit cards or payment by check (all  in advance).

Rick and I decided to use AAA to change some money, and though they don't offer this service in all states, they do offer it in Washington.  I would assume their rates would line up with the official exchange rate of the day, but discovered we were charged about 8% more for each euro and pound.  Tim and Linda worked with a commercial bank, and thought the charge was about 5% through the bank.  We know these rates are better than the money exchanges at the airports.

So we have some money to start the trip, but know we'll need more along the way.  Traveler's checks are cumbersome to use - waiting in line at the bank, signing away your firstborn child, etc.  Plus banks may not be open when you need money.  I remember a trip in 2000 to the British Isles, where my father-in-law would be waiting in line at the bank to cash his traveler's checks, while I was getting money at the ATM nextdoor in a fraction of the time.

ATMs are in every town and village in Europe now, and a quick and easy way to get cash.   Debit cards charge different fees for using them, but we've found these charges to be minimal, at least for credit unions.  Both credit unions we checked have a 1% charge for withdrawing cash overseas, and the machine you use may add a fee also. 

We'll also be using credit cards where possible.  They too have different fees, but supposedly use the current official conversion rate.  The British Airways credit card through Chase bank is advertising no fees on foreign transactions right now, but I think all of the other bank cards charge a fee.

Is all of this effort worth it?  For me, yes it is.  We could possible save a few hundred dollars overall, and I figure that pays for a few extras over the course of a trip.  It all adds up!

On another note, we're all packed! 

Luggage enjoying a few minutes on the deck.  As per usual, the largest bags go with the shortest person.

I know what you're thinking.  When do we get to the fun part of this blog?  the food?  the fancy stuff?  the foibles?  Soon, my friends, soon.

Until next time...