Question

As a student studying abroad and taking full advantage of travel opportunities. How could you plan your travels to maximize foreign currency translation as you cross borders while minimizing your personal tax burden? Do you think such an undertaking would or would not be worthwhile?

Answer 1

For students studying abroad and taking full advantage of travel opportunities should keep the following things in mind which would maximize foreign currency translation and minimuze personal tax burden -

1.The most practical option for a student studying abroad is to open his/her bank account with the foreign bank.

2. Use prepaid forex cards as they are economical and safe. Swiping of these cards at the merchant point of sale terminals does not attract fee.

3. Travellers Cheque, are one of the oldest and safest option with no expiry date. In case of theft, they cannot be used by others.

4. Keep a track on the exchange rates. If possible involve the use of currency futures and currency swaps.

5. Though ATMs are probably the smartest option one should be aware of the ATM transaction fees.

6. Opt for credit cards with no foreign transaction fees. There are companies that specially tailor traveler's credit card and student's credit card which will help you save money in the long run.

7. Try to avoid airport currency exchanges as they have the highest fees or least favourable rates in comparison to the alternatives available.

I believe such a undertaking would be worthwhile during study abroad period, One can underake other opportunities available to secure their finances.