Stay on budget with OANDA currency converter

When you’ve got a wad of K83,000 Lao kip jammed into your wallet (because it won’t possibly fit into your moneybelt), it can be easy to lose sight of the fact you’re only carrying around about US$10.

When dealing with different currencies, it’s hard to know how much you’re actually spending, particularly because exchange rates can change on a dime these days – the Canadian loonie is practically bipolar. So whether you’re debating over that Buddhist thangka in Kathmandu or those half-price Prada shoes in Paris, there are tools that can help you stick to your budget.

Not only that, but banks make you pay a price – a pretty hefty price, at that – for taking cash or credit card advances out of foreign ATMs. So the more you can stick to your budget, the more you’ll save in service charges.

In the past, if you didn’t have a knack for doing complex mathematical equations in your head, you’d have to carry around a calculator for currency conversions. Now, however, there are plenty of online currency tools to help you stay on budget. One I like is from OANDA, which has one of the world’s largest and most accurate databases of currency rates – you can choose from the Interbank (official) rate, typical credit card rate or typical cash rate.

Here are some of OANDA’s pre-departure budgeting tips:

-Call your bank and credit card companies before departure to inquire about exchange rates and any extra fees for using foreign ATM machines.

-Know that financial institutions typically charge retail customers the worst rates (which subsidize the discounts they give their “best” customers). Do some research and shop around for the best rate.

-Search the Web for travel forums about currency exchange issues specific to the country being visited (such as the practicality of travelers’ cheques or the best and worst places to change money).

-Use a currency converter, such as the one from OANDA, to figure out the typical credit card and cash rates being charged.

-Since exchange rates can change on a dime, keep up-to-date by downloading OANDA’s mobile currency converter for iPhone, BlackBerry or Palm to check exchange rates on the road.

-For those who don’t like to travel with their CrackBerry, print out OANDA’s wallet-sized currency cheat sheet ahead of time as a handy reference tool.

Photo Credit: OANDA