This page is part of a larger series focused on empowering you with tips, tricks and inspiration to help you finance your gap year. Many of these tips come from things I personally did when planning my own.

Preparing Your Finances Before a Gap Year (Part 1)

1) Money, Travel and Mindset
2) Determine How Much Money You’ll Need for a Gap Year
3) How to Save for Your Gap Year
4) Pay off your debts before taking a gap year

Preparing Your Finances Before a Gap Year (Part 2)

5) Converting Money
6) Services and Fees to Cancel and/or Reduce Before You Leave for Your Gap Year
7) Other Money Related Resources

Using Credit Cards, Debit Cards and ATM’s For Your Gap Year

8) Using credit cards while on your gap year and before it
9) Top Travel Credit Cards
10) Avoiding ATM fees while abroad

5) Converting Money

When you head abroad, I would recommend carrying minimal amounts of cash for each different country you’re in. While I use my credit card for a majority of purchases while traveling, cash can be invaluable for smaller purchases (e.g. subway tickets, coffee, souvenirs, etc.) or if you’re in a country where credit cards are not widely accepted (e.g. Japan). There are different ways you can obtain currency for the countries you’re traveling to:

• Your local bank
• ATM’s
• Banks in the countries you’re traveling to
• Currency exchange shops and kiosks
• Airport currency exchange kiosks

When I’m traveling, I will generally obtain local currencies when I arrive in the country. I use pretty much only ATM’s, as from my experiences, local bank’s ATM’s will work to obtain some of the most competitive rates possible. Another reason why I like using ATM’s is I am able to get only limited amounts of money, as I do not like to carry large amounts of cash in general. I have used my personal bank in the past as well to convert money before I left the country, but I don’t use that anymore, just due to the convenience of my ATM card. I’d recommend the Charles Schwab debit card (for US Citizens only), which allows ATM transactions with no fees! I cannot tell you how many hundreds of dollars the card has saved me in fees over the years traveling.

I have also utilized my personal bank in the past, but I found that they had limited amounts of currency for purchase. However, that might be a great option to sell back your currency when you arrive home.
I tend to avoid currency exchange kiosks, especially those in the airport or tourist centers, as they tend to prey on travelers and charge ridiculous rates, and offer poor conversion rates. For more information on currency conversion, I’d recommend this article by Rick Steves’, while focused on Europe can be applicable to traveling worldwide.

6) Services and Fees to Cancel or Reduce Before You Leave for Your Gap Year

When you’re on a gap year, there are going to be many services and bills you can cancel or reduce when you’re abroad. This will save you a bunch of money and allow you to use it for your travels! These are the top categories you may want to consider cutting:

• Your internet & cable bill – When you’re gone for an extended amount of time, do you really need to keep your internet and cable running? Probably not.
  
  
• Cell phone bill – When I took my gap year, I called my wireless provider to put my service on a temporary hold. There was no need to have my US plan while traveling, as I used SIM cards an WiFi to keep in touch with friends and family. This saved me a ton of money while I was overseas.
   
• Subscription Services – What subscriptions can you live without, while abroad? Do you really need that magazine or box of food or other goodies each month? Look at your credit card statement and cancel them! They’ll be waiting for you when you come back.
  
  
• Streaming services (e.g. Netflix, Hulu, etc.) – Some people will swear by their favorite streaming services as they have their favorite tv shows and movies. These services are probably great for down time, but in my personal opinion this is another unnecessary cost to have during your gap year. If you’re actively traveling during your gap year, there are so many new things you can be doing other than watching TV. Plus, some of these streaming services will not work outside of your home country.
  
  
• Insurance – There are certain types of insurance you’ll absolutely need for your gap year, including medical and travel insurance. However if you’re not driving your vehicle during your gap year, or moving out of your home after renting, you can probably cancel or reduce your auto insurance and renters insurance. Call your insurance company for more details.
  
  
• Gym membership – Cancel that gym membership while you’re abroad – no explanation needed!
  
  
• Rent/mortgage – Depending on your living situation, you can probably cut some major expenses out of your budget while taking your gap year. If you’re renting, a major expense will be automatically cut when you move out of your home and go abroad. Just make sure to tell your landlord as far in advance, as possible. If you own your home and pay a mortgage, this will be a more complicated choice. You can either sell your home or rent it out to tenants while you’re gone. A more profitable option would be to rent it out, while having a property management company or friends or family take care of the unit while you’re away.
  
  
• Bank fees – Are you paying monthly fees with your bank? Do they charge ATM fees for taking money out? Does your credit card charge a transaction fee? Never pay a bank fees, as it is their privilege to hold your money! Prior to your trip, dump your current bank(s) with fees, and look at ones that don’t charge fees, as this will save you a lot of money over time. A couple of great websites to research banks include Bankrate.com and Nerdwallet.

7) Other Money Related Resources

• Budget Your Trip – This website provides estimated costs for each individual country.
  
  
• “How Much Does it Cost to Travel Around the World” by Earth Trekkers Blog
  
  
• The Points Guy – Choose the right credit card(s) for your gap year and prior to earn rewards.

This page is for informational and entertainment purposes only. By using these resources, you are doing so at your own risk, and the website owner is not responsible for the outcome or results.