Before traveling into America, carry at least 150 Canadian dollars in your wallet for conversion. In the USA, cash is required for some taxis, pay phones, food establishments that do not take credit cards and some service vendors. The rate of exchange between Canada and the USA is usually at least one Canadian dollar to one American dollar, perhaps a little less, but it will vary from day to day. Currency rates are not as volatile as stocks; they are fixed rates from day to day. Consider taking between one-quarter to one-third of your travel budget for conversion into American cash. Keep this money in a secure place.
Use approximately one-quarter of your travel budget to purchase travelers cheques. Travelers cheques are a way to convert money for another country in your home country. Purchase travelers cheques to protect your money, prevent identity theft, save on exchange fees and lock in your exchange rate. Travelers cheques are not related to your personal information in any way.
Currency exchanges are a great place to convert Canadian money to American money. Do not use the currency exchange at or near an airport unless necessary. You can also use an ATM machine to obtain American money. ATMs in America will charge two fees: one fee to use a non-bank ATM and a second fee to utilize an American ATM. Consider opening a travel account with a global bank that does business in both Canada and the USA in order to avoid one of these fees.
Use debit or credit cards for purchases in the USA if you want a reduced rate on conversion. Credit and debit cards are based on banks which have a better conversion rate than currency exchanges. Hold on to your receipts after a purchase to verify against your next banking statement. Debit cards will automatically take the money out of your account, whereas with credit cards, you will need to pay the money you spent in your next billing cycle.
