Rick Steves' Practical Money Advice For Travelers Who Frequently Visit Europe

For some people, a trip to Europe is a once-in-a-lifetime event. For others, a voyage across the pond is no biggie, whether it's to visit family overseas, go on frequent business trips, or simply follow their wanderlust. If you're one of the lucky few who get to travel to Europe all the time, travel pro Rick Steves has some practical money advice for you — otherwise, this is something you may want to avoid. On his website, Steves says, "Multicurrency accounts make sense only for frequent travelers. Some banks offer multicurrency accounts, which allow you to transfer, receive, and hold several different currencies in the same bank account." These accounts, he shares, can be handy for frequent travelers or those staying overseas for longer periods.

Steves has given all sorts of financially savvy tips in the past, including shopping at family-run businesses to save money and spending local coinage before crossing borders, and using multi-currency accounts can be just as useful. The reason is that, by having accounts in different currencies, you can avoid frequent exchange rates when switching back and forth. The fees from exchanging currencies may not be a big deal for a week-long trip to France, but if you're visiting family there a few times a year or you have a business there, it can add up quickly.

For those who do travel back and forth frequently between the U.S. and Europe, a multi-currency account is worth considering. (Wise and Revolut are two easily accessible options.) NerdWallet explains that this type of account "can work like an international checking account with multiple subaccounts, each with a different currency." This allows you to hold money in those currencies, avoiding a bad exchange rate when on vacation. Exchange rates between currencies can change for a number of reasons, including trade shifts, interest rates, politics, the stock market, and world events, and they can do so at any time. Already having funds available in euros or another foreign currency might save you a lot of money.

However, there are other options for less frequent travelers. Rick Steves says that "it's easier to stick with a fee-free credit card" if you're a casual traveler. You can also look into debit cards that don't charge transaction fees when you use an ATM overseas. That is helpful if you take another piece of advice from Steves, which is to use local currency for everyday purchases. Additionally, he explains that getting cash from an ATM is a better option than trying to exchange dollars for another currency in your home country; you'll likely get a better rate. However, Steves says in a separate post to try to use an ATM run by a bank rather than an independent one, which can charge higher fees.