Teens - Europe - spending money?

[BLAZEY]

As a European, I also think cash would be the better choice and here's why: Some parts of Europe are still not as card advanced as the US. Example: in Italy, you would be able to pay in most shops/restaurants with a card while in Berlin, Germany, most restaurants do not accept cards. Almost anywhere in southern Europe, it would be impossible to purchase anything in a street market if you don't carry cash. Conversely, you can pay with card in any street/square market in the Nordics.

Also, if you opt for a guide book, I also strongly suggest Rick Steves. My American parents in law used several of his guides around Europe and I can tell the quality is very very high.

Actually, it's the opposite. The US banking system is antiquated compared to most of Europe. I'm Canadian and the US banking system is antiquated compared to ours. I was in the US this year, I actually had to SIGN a credit card receipt? I haven't done that in over a decade in Canada. Venmo? Why is it needed, we've been able to e-transfer money to friends and family for YEARS directly from the banking app on my phone? Never had a problem using a credit card in Europe when I was the over 5 years ago. A street market is not the same as actual shops and restaurants, and yes one should always have some local currency on hand for small cash purchases.

 

[mnrose]

The absolute easiest way to get money in Europe is from an ATM. As long as you "decline" the proffered "dynamic exchange rate" (which is usually dynamically BAD), you get a very good interbank rate. Exchanges of dollars into Euros in Europe usually comes at a fee/cost/poor exchange rate that gets you less money for your dollar. There are excellent cards available that do not charge an international transaction fee. I can personally recommend the Capitol One 360 account, which has NO fees and NO foreign transaction fees. Super easy. That's how I would send a teen. What's also nice is that if you needed to, more money could be easily added to the account in an emergency. Some countries in Europe (Germany is one example) have a decided preference for cash. Others are very well equipped to use cards everywhere.

 

[mnrose]

Also, be wary of AAA. Some offices give you close to the interbank rate. But, each area of the country does it differently. Some give you an exchange rate that is anywhere 5-10% LESS than the interbank rate you'd get in the foreign country when withdrawing from an ATM. May not sound like much, but 200 USD would net you 180 USD in Euros. That's a big bite. When I was in Europe last month, and used my Capitol One card, I got EXACTLY (to the minute) the current exchange rate, less the ATM fee, which was $2-3 USD. A much better deal.

 

[mjkacmom]

Also, be wary of AAA. Some offices give you close to the interbank rate. But, each area of the country does it differently. Some give you an exchange rate that is anywhere 5-10% LESS than the interbank rate you'd get in the foreign country when withdrawing from an ATM. May not sound like much, but 200 USD would net you 180 USD in Euros. That's a big bite. When I was in Europe last month, and used my Capitol One card, I got EXACTLY (to the minute) the current exchange rate, less the ATM fee, which was $2-3 USD. A much better deal.

But that won’t help the OP to make a gift out of it.

 

[Wakey]

Uk has about the most advanced credit card system in the world . We had chips and pins in cards long before they appeared in the US. They bring a machine to you in restaurants etc in UK- no taking the card away to sign later as in US which to us seems very old fashioned. Contactless is the order of the day, we haven’t really swiped cards in a decade, again seen as very old fashioned. If over £50 then it’s chip and pin.
If you are coming to London, for the tube use a contactless card or google pay or Apple Pay- just touch in or out.
Not sure what credit cards are available in US, but in UK a few providers supply cards with no foreign exchange fees and you get the proper interbank exchange rate also. So when I go anywhere (Spain , France and particularly US) I use that instead of changing money. Not sure if you can get a similar one in US and then use that in UK.
We also have cards such as Revolut and Starling. These are ideal for this scenario as you load the card up with local currency on your phone, then you can convert it into a foreign exchange, again at proper interbank rates. You can also do things like lock the card if lost. Not sure if you have anything similar in US but that would be ideal as you could remotely load it with money as and when required and it spends just like a regular MasterCard with no fees.

 

[kaseyC]

It is still the advice U.S. based travel agents give. And this article is from just a few weeks ago. https://www.touristbee.com/2007/12/use-your-atm-card-in-europe

Did you even read the article you posted? lol It seems supported @SirDuff point more than yours. We travel through out Europe often and we've had no issues using our chip and signature cards. We found on our most recent trip to London and Paris in September that many places accept contactless cards and/or digital wallet type payments like Apple pay.

 

[kaseyC]

Contactless is the order of the day, we haven’t really swiped cards in a decade, again seen as very old fashioned. If over £50 then it’s chip and pin.
If you are coming to London, for the tube use a contactless card or google pay or Apple Pay- just touch in or out.

That's exactly what we experienced during our most recent trip to London in September. We used our Apple pay for so many things. We also used our contactless Visa cards and Debit cards as well.

 

[tvguy]

Did you even read the article you posted? lol It seems supported @SirDuff point more than yours. We travel through out Europe often and we've had no issues using our chip and signature cards. We found on our most recent trip to London and Paris in September that many places accept contactless cards and/or digital wallet type payments like Apple pay.

Yup I read it.
2. YOUR ATM CARD’S PIN NUMBER MUST HAVE 4 DIGITS
In Europe pin numbers still have only 4 digits allowed. In the US most banks allow for 5 digits as well. Before you travel abroad, make sure you go to a local branch and change your pin to 4 digits. Don’t forget to test the new pin! Europe has been moving to 5 digit pin numbers lately but there are still many older ATM machines that only work with 4 digit pin numbers.
Yes even in 2019, the safest way to make sure your ATM card works in Europe is to have 4 digits only as your PIN number. Barclays Bank in the UK suggests using 4 digit pins for their own customers if they have to create a new PIN number. So, be safe and use 4 digits.

 

[Heather07438]

Our DS is going to Scotland/UK for 11 days with HS marching band (most of the 125 kids are going+ chaperones). For 2 band meetings, our local bank came in to set up debit cards in the kid's names. It is Lakeland bank which is a smaller local bank, but they are part of All-Point system that includes 55,000 surcharge free ATMs between United States, Canada, United Kingdom, Puerto Rico, Australia, and Mexico.

The band goes every 4 years and through experience found this works best. No exchange rate fees, and they can pull local currency when they get there for pocket money.
Maybe check to see if you have a local bank who is part of something similar that works in the countries visited.

The other good thing was when the bank set up the accounts at the band meeting, they started each kid's account with a bonus $50. Free money.

 

[BadPinkTink]

I just want to point out that "Europe" is not just one place. Each country has different ways of doing things. The important thing to do is research the specific country you are visiting, and make sure you have that specific county's currency. Then you should then research that specific country's way of doing things regarding American bank cards, chip and pin, contactless and ATM. You also need to research whether that specific country is going cashless or whether they rely more on cash.

As can be seen in this thread, you will get conflicting information depending on which country the poster lives in / has visited

 

[sam_gordon]

DS went to Germany on a soccer trip this past summer. We got $200 in Euros from our bank before we left. He went with that and we got him an authorized CC on my account.

 

[kaseyC]

Yup I read it.
2. YOUR ATM CARD’S PIN NUMBER MUST HAVE 4 DIGITS
In Europe pin numbers still have only 4 digits allowed. In the US most banks allow for 5 digits as well. Before you travel abroad, make sure you go to a local branch and change your pin to 4 digits. Don’t forget to test the new pin! Europe has been moving to 5 digit pin numbers lately but there are still many older ATM machines that only work with 4 digit pin numbers.
Yes even in 2019, the safest way to make sure your ATM card works in Europe is to have 4 digits only as your PIN number. Barclays Bank in the UK suggests using 4 digit pins for their own customers if they have to create a new PIN number. So, be safe and use 4 digits.

ATM cards, yes but most posters are talking about credit cards. ATM cards are used for withdrawing cash. Credit cards are used for purchases, rarely used for withdrawing cash because fees are so high. Even your quote above mentions that many European countries are moving to 5 digit pins.
Anyway, I’m not going to argue about this, I will trust my own recent experience over some random guy’s travel blog.

 

[tvguy]

ATM cards, yes but most posters are talking about credit cards. ATM cards are used for withdrawing cash. Credit cards are used for purchases, rarely used for withdrawing cash because fees are so high. Even your quote above mentions that many European countries are moving to 5 digit pins.
Anyway, I’m not going to argue about this, I will trust my own recent experience over some random guy’s travel blog.

Bottom line is, having a 4 digit pin isn't going to cause you any problems. And the 4 digit pin recommendation is also part of the packets U.S. students get who are studying abroad. So not just some random dude.

 

[cheryl.UK]

Chip and Pin in the UK is 4 digits. We even call it 'the 4 digit chip n pin' in banking leaflets. It's not just ATMs, as even if the card reader doesn't recognise your chip and you have to swipe, you still need the 4 digit PIN. You can't sign. Having said that, when we travel to France, our cards sometimes don't work, as some places are only set up for 5 digits. So as an earlier poster noted, Europe is not just one place but a group of different countries with different rules

OP, as this is a gift, I'd suggest you find out which countries your young relative is visiting and get some actual currency as this makes a great gift, especially if it will mean more than one. It's nice to see the currencies of different countries. In terms of how much? Well, a large Starbucks Latte costs around £3.80 so just under $5, a pre packaged sandwich from a store anywhere from £2.50 - £3.80 so $3-5. And of course, if they are coming to the UK, they will need to buy some Jaffa Cakes, £1 per box or $1.30

 

[amcnj]

I am not sure if someone else already mentioned this, but foreign currency may be available through your bank too. Mine offers that service. Also ask if there is a minimum amount and what the fees are.

 

[Ciao Mickey]

I am a member of AAA, and they do have a local office here. How do I get Euros? Do I need to order in advance?

(P.S. I am Thankful to all of you for your suggestions!)

You can also get euros at major banks.

 

[starry_solo]

I would find out what countries the teens will be visiting and get appropriate currency. Maybe a journal too, if they still write by hand

 

[valval]

Actually, it's the opposite. The US banking system is antiquated compared to most of Europe. I'm Canadian and the US banking system is antiquated compared to ours. I was in the US this year, I actually had to SIGN a credit card receipt? I haven't done that in over a decade in Canada. Venmo? Why is it needed, we've been able to e-transfer money to friends and family for YEARS directly from the banking app on my phone? Never had a problem using a credit card in Europe when I was the over 5 years ago. A street market is not the same as actual shops and restaurants, and yes one should always have some local currency on hand for small cash purchases.

You are right about many things (e.g. as a European I NEVER used checks in my life, I only see them when we visit my parents in law in the US). Although, in my answer, I wasn't really comparing the card systems, but mainly focussing on what a teenager who's possibly travelling with an organized group (so, all big expenses probably already covered) could purchase as extra: probably snacks, souvenirs, and other little things, right?

 

[aprilgail]

At 14 mine had her own visa/debit card so she just used that for all her shopping and could use it abroad too. It was connected to my checking account so I could look and see how much she had in there and instantly transfer money to her if needed.

 

[tennisfan]

Uk has about the most advanced credit card system in the world . We had chips and pins in cards long before they appeared in the US. They bring a machine to you in restaurants etc in UK- no taking the card away to sign later as in US which to us seems very old fashioned. Contactless is the order of the day, we haven’t really swiped cards in a decade, again seen as very old fashioned. If over £50 then it’s chip and pin.
If you are coming to London, for the tube use a contactless card or google pay or Apple Pay- just touch in or out.
Not sure what credit cards are available in US, but in UK a few providers supply cards with no foreign exchange fees and you get the proper interbank exchange rate also. So when I go anywhere (Spain , France and particularly US) I use that instead of changing money. Not sure if you can get a similar one in US and then use that in UK.
We also have cards such as Revolut and Starling. These are ideal for this scenario as you load the card up with local currency on your phone, then you can convert it into a foreign exchange, again at proper interbank rates. You can also do things like lock the card if lost. Not sure if you have anything similar in US but that would be ideal as you could remotely load it with money as and when required and it spends just like a regular MasterCard with no fees.

Currently the maximum contactless payment is £30 in the UK, anything over that is chip & pin