Swapping your nice Aussie dollars for piles of obscure-looking coins and crumpled old notes can make your head spin. How do you know you haven't been ripped off? And when there's millions of them to the dollar how are you meant to work out if something's a bargain or not?
Funny money maths
So you want to know how many Swedish kronor an Aussie dollar buys? Try our easy-to-use Foreign Exchange Calculator to find out.
But what about when you're on the road and have to do the maths in your head? It's usually easier to get to grips with spending in a different currency if you can come up with a simple calculation. Here's an easy example: GBP£1.00 is currently worth about AUD$2.50. So multiply the cost of anything you're thinking of buying in pounds by two and a half and you'll have the rough cost in dollars.
Now let's see you do the same with 28.55 Indian rupees to the dollar… [Answer: Unless you're a maths wiz, round it up to 30 and divide accordingly. It'll be close enough.]What's the best way of getting hold of the cash you need without getting ripped off?
Know the buy rates/sell rates
Generally, you'll have to pay commission every time you change your money. You'll see most exchange places, or Bureaux de Change, have 'We buy' and 'We sell' rates for each currency they deal in. This allows them to 'sell' a currency at a lower rate than they 'buy' it for (say, converting your Aussie dollars into Japanese yen). The difference between the buy and sell rates is how they make a profit.
Shop around
The amount you get in your pocket can vary massively depending on where you buy your currency. That's because the exchange rate can vary, and so can the commission. So spend a bit of time comparison shopping. Once you find a good rate, make sure you're getting the right money. Make them count the money out in front of you, and if you feel you should be getting more, ask them to explain the exchange rate to you again.
Watch who you buy your money from
If you're in a place where you're constantly being pestered to change money, you'll know there's a flourishing black market. But that doesn't mean it'll be cheaper than going through official places. In reality rates are rarely better, there's more risk of being ripped off - and it's illegal.
With each country you visit you'll probably get wise to 'winding down' the cash you have on you before you leave.
Take notes back to where you bought them
It's worth checking with where you first bought your money as some exchange places such as travel agents and Bureaux de Change may offer special deals for customers returning from holiday with leftover foreign notes.
And what about foreign coins?
Coins are very hard to exchange and you really won't get anything for them back home. A good idea is to give leftover coins to charity boxes at airports.