Money

Get an Australian Bank Account

• The best way to handle money in Australia is to have an Australian bank account
• Your host family can pay you in automatic transfers
• You can withdraw/use your Australian debit card as you like

Best option: Get a bank account before you arrive

• We recommend you apply for an account with Australia and New Zealand Banking Group (ANZ)
  • You can make mobile payments easily and securely
  • You get a VISA debit card
  • You can bank online​
  • Unlimited ANZ transactions plus branches and ATMs all over Australia (find one near your host family)
  • No monthly account service fee (normally $5 a month) if you’re under 25
  • You can also apply after you arrive to Australia, but having it set up before will help your transition
• Requirements
  • Arrive in Australia within 1 year
  • Be a non-resident of Australia
  • Have your TIN (Taxpayer Identification Number) or SSN (Social Security Number)
• How it works
  • Apply online (takes 10 min)
  • Your account will be opened with limited access
  • You can then transfer funds and check safe arrival with ANZ Internet Banking
  • You’ll also receive a call from ANZ’s International Concierge team to register your internet banking and answer any questions about banking in Australia
  • Once you arrive in Australia, fully activate your account by completing your identity check at any ANZ branch

Another option: Cash Only

• One way of paying for things out of your funds from home is using cash
  • ​If you do this, use a bank that charges no or low fees for international ATM transaction
  • Then just withdraw larger amounts at each transaction
  • And only carry with you what you need that day
• Bonus: the less you use your cards, the less likely your information will be stolen
• However, this might be more difficult for your host family

Another option: E-card

• You can apply for this E-card which works for 70% of ATMs and almost 50% of local merchants in Australia
• Read more about this card

ATM Tips

• If you are withdrawing cash from an ATM, use a bank-run ATM that’s just outside that bank during the bank’s opening hours (in case your card gets eaten so you can go inside for help)
• Bank ATMs usually do not charge usage fees and are generally more secure (cameras)
• Select debit, not credit — avoid extra fees this way
• Avoid “independent” ATMs as they usually have high fees
• Know the daily limits set by your bank at home
  • Bear in mind the exchange rate when calculating your daily limit

Basic Do’s and Don’ts

• DON’T exchange dollars for foreign cash at a currency exchange booth (it’s a rip-off!)
• DON’T carry a lot of cash with you (either traveling to Australia or once you’re there)
• DON’T buy foreign currency before your trip
• DO keep your money safe at your host family’s home and/or in a money belt
• DO use local cash where you travel
• DO assume you’ll be shortchanged so count your change to be safe
• DO familiarize yourself with the exchange rate (so you can do rough estimates in your head)

We suggest bringing the following

• American debit card
  • As a backup to your ANZ card, you can use this at ATMs to withdraw local cash
  • Make sure it has a Visa or MasterCard logo
  • Check with your bank what the international transaction fees are
    • Ideally, you want a flat fee per transaction/withdrawal (a few dollars, usually $2-$5)
    • Don’t withdraw cash all the time, try to space it out so you don’t pay the fee so often
    • Make sure it doesn’t expire while you’re abroad!
• Backup card: Carry a backup card (debit or credit, ideally from another bank), in case your main one gets lost, demagnetized, stolen, or just doesn’t work
• US dollars: As an optional backup plan, you can bring some cash ($50 – $100
  • This can come in handy for emergencies or if your ATM card isn’t working

You may also choose to bring

• Credit card: Make sure the international fees are zero! You can use a credit card to pay for larger items (train tickets, larger shops and restaurants, etc.)
  • Don’t use these with an ATM (they have sky-high withdrawal fees and interest rates
• E-card: Handy card and works for many local merchants and has zero ATM fees

Tipping

• The US tends to be more generous and automatic in tipping compared to Australians
• Generally, Aussies say tipping isn’t necessary
  • Some even say to avoid it because it encourages service staff to pay better attention to those who seem like ‘good tippers’
• No hard and fast rules unfortunately
• So…should you tip?
  • If you had a great dining experience and a server who you feel is deserving, by all means, leave a tip
  • But don’t feel remotely obliged to tip service every single time you interact with a wait staff server
  • As it’s a new practice, it’s not considered impolite if you choose not to tip
  • If you’re in a popular tourist destination area, it is more expected to tip waiters in relatively upmarket restaurants, taxi drivers, and hotel workers who carry your luggage to your room or otherwise provide room service
    • I.e. city areas like Sydney or Melbourne
  • When in doubt, go with your gut
• How much to tip
  • Hotel room service: For those who bring your baggage to your room, one to two dollars per piece of luggage is plenty. For those bringing in room service orders of food or drink, a small gratuity of two to five dollars is also more than enough.
  • Hairdressers, massages, and other personal service providers, tipping really depends on how much the service is worth to you above the normal charge. In most instances, these service providers rarely receive tips so anything you offer will be gratefully accepted.
  • Restaurants: No more than 10% should suffice if you’re pleased with the service and depending on the area and type of restaurant​.
  • Taxis: If your taxi driver gave you some great tips, you can give an extra $5.
• When in doubt, ask your host family (different countries tip for different things)

Before you leave

1. Set up your ANZ bank account
2. Know your cards
   1. Make sure they will work abroad! Ideally, use a debit card with a Visa/MasterCard logo
3. Ask about fees
   1. With either credit or debit cards, you could be charged any or all of the following fees:
      1. A currency conversion fee (usually 1–3 percent of the whole amount)
      2. A Visa or MasterCard international transaction fee (1 percent)
      3. For debit cards, a flat $2–5 transaction fee each time you use a foreign ATM
      4. Some major US banks partner with European banks, allowing you to use certain ATMs without fees
      5. If you’re getting a bad deal​, consider getting a new debit card​
4. Check your cards’ expiration dates
   1. If your card will expire during or soon after your trip, get a new one
5. Let your bank know your travel dates
   1. Do this in writing, not verbally (i.e. online or via your bank’s app)
   2. Set your travel notification for the countries you’ll be in and the dates you’ll be abroad
   3. Do this for weekend trips as well if you’re visiting another city/country
   4. This way, they won’t freeze your card if they detect unusual activity
6. Know your PIN
   1. Make sure you know the four-digit PIN for all of your cards
   2. Request it if you don’t have one (many purchases require it)
7. Adjust your ATM withdrawal limit
   1. Find out how much you can take out daily
   2. Remember that you’re withdrawing cash in the local currency
   3. So if your daily limit is $200 in US dollars, that might be €150 or so depending on the exchange rate
   4. Ask for a higher withdrawal limit if you want to get more cash at once
8. Have a back up plan
   1. In case your main card doesn’t work, what’s your back up plan?

​Informative resources for money

• Oanda – currency conversion tool, with handy app version
• Federal Trade Commission – advice on bank card theft and more
• NerdWallet – objective advice on debit- and credit-card options for overseas trips
• Bankrate – compares bank-card fees
• Your bank’s mobile app
• Locate nearby ATMs and banks (and restaurants, pharmacies, etc.) with Google Maps, Apple Maps, etc​.
• Get more money tips from our friend, Rick Steves!

Ways to fund your adventure abroad

1. 1. Tell your friends! You get a $70 discount for each friend you refer to the program ​​who does it as well
      1. When they apply, have them use your full name as the promo code
   2. Save money:
      1. ​​Make and stick to a BUDGET
      2. Live off 70% or less of what you bring home
      3. Spend less on groceries (meal planning helps a TON!)
      4. Don’t buy things you don’t need
      5. Use cash, not cards
   3. Make or raise money:
      1. Sell your textbooks on Amazon when the semester is over
      2. Get a job (or second job)
      3. Send out a fundraising letter
      4. Donate your birthday or Christmas
      5. Use a fundraising website
      6. Set up a car wash
      7. Host a garage sale
      8. Use Facebook/Instagram
      9. Host a bake sale
      10. Sell arts/crafts of your own making
      11. Babysit
      12. Tutor