Money Matters

This is certainly one of the most important subjects, in any country, and in any language. You can’t stay in a country (not even your own!) unless you have money. How should you manage it? It’s not for me to tell you how to handle it, of course. I’ll just mention some ideas that you might keep in mind, and some pitfalls to watch out for. In the first place, do you know what your new currency is called? Find out! What about the exchange rate? Does it fluctuate wildly? Does your new country accept your home country’s currency, in a pinch? Some countries prefer to receive foreign money, if the exchange rate is a variable one. A number of expatriates like to have a sizable amount of their own currency on hand, in case of emergencies. An example? Let’s say that you have to leave the country immediately. But, it might be a Saturday night, and you may get to your home country in the wee hours of Sunday morning. No foreign money exchange places open, even in the airport. How do you catch a cab? With your carefully hoarded home currency, that you’ve saved for just such an event.

Now, the big question. Do you keep your money in a home country account, or do you transfer it to your new country? Depends on what the two countries’ financial situations are. Is your home country in a more stable economic condition than your new one? Is it vice-versa? Are they about the same? My advice? Go for the more stable economy, but try to have a local financial account. It helps when you’re trying to set up utilities in your new home, such as electricity, phone, Internet service, cable. Plus, you have a ready source of local currency at your fingertips. And, with Internet so prevalent, it’s easy to check on your home financial accounts, without having to wait for a statement to come to your new home. Your bank doesn’t have online banking facilities? Have a trusted relative or friend take care of your bank statements, if necessary.

If you’re going to put your money into a local bank account, please do research into the banking system of your new country. Are all deposits insured by the central bank of the country? Have there been problems with the banking system? What kind of services do they offer? What are their responsibilities towards their customers? What are the interest rates? Do they offer credit cards that are internationally recognized? Do they themselves offer credit cards that can be used anywhere in the world? For example, here in Ecuador there are banks that offer national VISA cards, that can only be used here in Ecuador, and international VISA cards, that can be used anywhere in the world. Are there branches around where you’re going to be living? Are there branches around the country? How long has the bank been in operation? Please keep in mind that, especially in the Third World, banks go under every day, and they might not be “federally insured”. Even if they are, it might take you years to get your money back. I have local friends that have been waiting over two years to get their money back from a defunct bank. What would a foreigner have to do? I’ve have known those who have had to leave their new country prematurely, precisely because of this situation. So, if you’re going to open up a local account, weigh the risks and count the cost.

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