Money Matters

Program Cost

For information about the program fee and personal budgeting guidelines, visit: http://www.bu.edu/abroad/apply-go/finances-and-financial-aid/

Currency

The currency used in France is the euro, issued in both paper notes and coins, with one euro equal to 100 cents. The smallest unit of currency is the one cent coin. Start now to familiarize yourself with the currency, both notes and coins, as well as the exchange rate. Check online for the current exchange rates. The huge advantage of the common European currency is that you will be able to use the euro all over western Europe (with some exceptions such as the UK, Denmark, Switzerland and Sweden) without worrying about exchange rates and bank fees.

Banking

Most banks in Paris will exchange currency Monday through Friday, between 9 a.m. and 5 p.m., but usually take a commission. You might want to exchange your currency at the Alliance Française — there is no fee and the exchange rate is usually good. You can also find out if your home bank has any French affiliates; for example, students with Bank of America debit cards can withdraw money from BNP ATMs without incurring fees.

Bank Accounts

Opening a bank account is not a necessity unless you expect to receive a regular allowance from the United States. Those of you who will be receiving regular monetary allotments may want to consider opening a bank account at BNP, Société Génerale or Credit Lyonnais, which will make it possible for you to cash personal and travelers checks. However, cashing personal checks can incur significant delays in the transfer of funds as well as significant transfer fees. Opening a bank account in France requires a lot of paperwork, and the process can take up to a month to complete. If you plan to bring over all of your money in one lump sum, chances are you will not need a bank account.

How much should I take?

Your expenses will depend on your own standard of living and how much traveling, shopping, and dining out you do. In the past, students have spent approximately $1000  for food, personal expenses, and commuting.  Additional money is usually needed if you plan to travel, even if only on weekends.  Keep in mind that Paris is an expensive city and that your buying power is directly related to the strength of the dollar. Keep in mind as well that these amounts are estimates only reported by recent past participants of the program.

Transferring Funds

Instead of only using travelers checks (as used to be the custom), many students now rely on a combination of travelers checks, an ATM card and a credit card. Remember to bring both types of cards with you, as your ATM card will be useless if it becomes demagnetized, damaged, or lost.

ATM Cards

With your ATM card from home, you will be able to withdraw funds from your U.S. checking (not savings) account. Although there will probably be a fee for each transaction at another bank’s ATM machine, you will be charged the bank’s exchange rate in effect that day, which is typically better than the one used for normal currency exchanges. Be sure that your bank is on the CIRRUS network, which is recognized internationally. U.S. banks vary widely in the charges they attach to foreign ATM withdrawals and the daily limits they impose on amounts withdrawn; shop around before leaving and consider moving your account based on what you learn.

Note: Money deposited into your U.S. bank account during the normal working day is typically updated on the U.S. bank’s computer at midnight that day, which means you cannot withdraw money until the French bank’s computers have similarly updated their records at midnight the following night. In other words, there will generally be a delay of two business days before you can access those funds. Details for using ATM cards abroad vary from bank to bank. For some banks, you will need to inform them that you plan to use your ATM card abroad so that bank officials can allow overseas card transactions. Be persistent in finding out information on service fees and restrictions. If your ATM Personal Identification Number (PIN) is not four digits long, change it to four digits before you leave the U.S. Many European machines cannot accept a longer PIN and many keyboards may not have letters indicated. If you have a checking account with Bank of America, you can withdraw local currency, with no added fees, from ATMs operated by Barclay’s Bank in the U.K., BNP Paribas in France, and Deutsche Bank in Germany. You won’t pay the usual one-percent exchange fee.

If you open a joint account with someone at home before you leave, they can deposit money into your account that you can then access with an ATM.

Credit Cards

Credit cards are a very good money source. Students have found that Visa (called Carte Bleue) is the most useful credit card to have in France. Cash advances and money sent from the States through Visa is one of the best methods of money transfer. When making a cash withdrawal or a purchase with your Visa, you are sure to get the official exchange rate and the bank service charge is generally very small. Using a credit card also comes in handy when traveling because you don’t have to worry about exchanging one currency into another; you can use the ATM in whatever country you are in, and you never have to carry lots of cash at any one time.

Travelers Checks

A safe way to get your money to your destination is by carrying travelers checks. Once you reach your destination you can keep them in a safe place with your own belongings. When purchasing checks, it is good to keep in mind that even if you are able to purchase them without charge, there will almost always be some kind of charge when you cash them. Therefore, it is usually better to purchase checks in larger denominations in order to reduce check cashing fees. Travelers checks can be cashed at large banks with foreign exchange counters, and the American Express office will cash AmEx Travelers Checks at no charge, as well as Thomas Cooke Travelers Checks. Keep in mind that travelers checks cannot be used for purchases in stores or restaurants even if they are in euros.  Some banks change your travelers checks or dollars but most charge commissions. You’ll need your passport to change travelers checks

Personal U.S. Checks/Credit Refunds

The only way to cash personal U.S. checks in France is with an American Express card. The check must be a personal check of your own written out to yourself. You simply cannot cash a foreign check at a bank without having a bank account from which to cash it. If you are expecting loan checks or credit/refund checks from your student account at Boston University, do not expect to be able to cash them while in France.

Cash

The obvious danger of losing your cash or having it stolen does not make this a good option for large sums of money.  No student should ever keep large amounts of cash in his/her room or on his/her person.

Cash for Arrival

You should plan to exchange $150 into euros before you leave so that you will have money to use when you first arrive in Paris.  Small denominations are best.  You also may want to carry some U.S. currency. You can exchange currency at a bank, foreign exchange broker or even at the airport prior to departure. You will also be able to withdraw euros from ATM (cash) machines upon arrival.