Travel & Culture - Managing Money: Exchanges and ATMs (Intermediate)

Activity 1: Let's Get Started! 🤔 (Warm-up)

Let's discuss handling money in foreign countries!

What are the different ways you can obtain local currency when traveling abroad (e.g., before you leave, at the airport, at a local bank)? What are the pros and cons of each?
What are some common concerns or precautions to take when using ATMs in a foreign country?
Describe a time you had to exchange currency or use an ATM abroad. Was it straightforward, or did you encounter any challenges? What did you learn?

Activity 2: New Words & Phrases 🗣️ (Vocabulary)

Here are some key terms and phrases for managing money and using financial services while traveling, at an intermediate level.

1. Exchange rate (noun phrase): The value of one currency for the purpose of conversion to another.

Example: "It's wise to check the current Exchange rate before converting a large sum of money."

2. Commission (noun): A fee charged by a bank or currency exchange service for converting money from one currency to another.

Example: "Some exchange bureaus offer better rates but charge a higher Commission."

3. ATM (Automated Teller Machine) (noun): A machine that dispenses cash or performs other banking services when an account holder inserts a bank card.

Example: "Using an ATM affiliated with your bank can sometimes reduce withdrawal fees."

4. Withdraw cash (verb phrase): To take money out of a bank account, often using an ATM.

Example: "She needed to Withdraw cash to pay for items at the local market, as they didn't accept cards."

5. Foreign transaction fee (noun phrase): A charge levied by your bank or credit card issuer for purchases made in a foreign currency or processed by a foreign bank.

Example: "Using a credit card with no Foreign transaction fee can save you a significant amount on your trip."

6. Currency exchange (noun phrase / verb phrase): A place where you can change one currency for another. / The act of changing currencies.

Example: "He went to a Currency exchange booth at the airport, though the rates weren't the best." / "It's best to Currency exchange only what you need for immediate expenses."

Activity 3: Reading - Financial Footwork Abroad 📖

Read this story about a traveler managing their finances in a new country.

Before her trip to Southeast Asia, Sarah did some research on managing money. She learned that while credit cards were widely accepted in cities, smaller towns and markets often relied on cash. Upon arrival at the airport, she decided to visit a Currency exchange booth to get some local currency for immediate needs like a taxi and snacks, despite knowing the Exchange rate might not be the most favorable. She was careful to ask about any Commission fees before completing the transaction. For larger sums, she planned to use an ATM linked to her bank's global network to Withdraw cash, as this often provided a better rate, though she was aware her bank might charge a small fee per withdrawal.

During her stay, Sarah used her credit card for hotel payments and larger purchases in established shops. She had specifically chosen a card that didn't charge a Foreign transaction fee, which she knew could add up. When using an ATM, she was always cautious, preferring machines located inside bank branches or well-lit areas, and she always covered the keypad when entering her PIN. She also kept a small emergency stash of her home currency hidden separately. By understanding the different options for obtaining and using money, being mindful of potential fees like Commission and Foreign transaction fees, and taking sensible precautions at ATMs, Sarah managed her travel budget effectively and felt secure in her financial dealings throughout her journey.

Questions about the Story:

Answer these questions:

What did Sarah do regarding money upon her arrival at the airport, and why?
What was Sarah's strategy for obtaining larger amounts of cash during her trip?
What type of credit card did Sarah choose to use and why was this beneficial?
What precautions did Sarah take when using an ATM?
What two types of fees related to currency and international payments did Sarah consider?

Activity 4: Role Play - At the Currency Exchange 🎭

Let's pretend! One person is Mr. David Lee (Tourist), and the other is Ms. Anya Sharma (Currency Exchange Clerk).

Mr. David Lee: Good morning. I'd like to perform a Currency exchange, please. I want to change US dollars into local currency.

Ms. Anya Sharma: Good morning, sir. Certainly. What is the current Exchange rate for US dollars?

Mr. David Lee: Today, one US dollar gets you 125 local units. Do you charge any Commission for the transaction?

Ms. Anya Sharma: We have a small, flat Commission fee of 2 local units per transaction, regardless of the amount exchanged.

Mr. David Lee: Okay, that's clear. I'd like to exchange $200. Is there an ATM nearby where I could also Withdraw cash directly?

Ms. Anya Sharma: Yes, there's an ATM just outside, to your right. However, be aware that your bank might charge you a Foreign transaction fee for using an international ATM, in addition to any ATM operator fees.

Mr. David Lee: That's good to know. I'll exchange some cash here then, and perhaps use the ATM for smaller withdrawals later if needed.

Ms. Anya Sharma: Very well. So, for $200 at today's Exchange rate, minus our Commission, you'll receive... (calculates). Here you are.

Mr. David Lee: Thank you very much. This helps a lot for my immediate expenses.

Let's Talk About It:

After you read, talk about this:

What two fees did Ms. Sharma mention that Mr. Lee should be aware of (one for exchange, one for ATM)?
Why did Mr. Lee decide to exchange some cash at the booth rather than only relying on the ATM initially?

Activity 5: Let's Practice - Money Matters Abroad ✍️

Help Chloe (Traveler) complete her part of a conversation with a bank teller about exchanging money. Use words and phrases from Activity 2!

Bank Teller: Good afternoon! How can I help you today?

Chloe (Traveler): Good afternoon. I'd like to perform a . I need to change Euros into local currency. What's the current ?

Bank Teller: Currently, one Euro is 1.5 local units. We do have a small for this service.

Chloe (Traveler): Okay. I also need to from my account. Is there an in this bank that accepts international cards?

Bank Teller: Yes, our ATM outside accepts most international cards. Just be aware of any potential your own bank might charge.

Chloe (Traveler): Right, I'll keep that in mind. Thank you for your assistance!

Show Answers! (Activity 5) ✨