Moving abroad is exciting until your bank account starts acting a little funny and you realize you’ve been casually losing money without noticing. One of the biggest lessons I learned when I first moved to Spain? Not all money moves are smart money moves. Let’s get into what I wish I knew from the start.
Get a card with no foreign transaction fees
If you take nothing else from this, take this. When I first moved, I was still using my card from Bank of America, like everything was normal. Meanwhile, I was getting hit with foreign transaction fees on almost every purchase.
And the worst part? They’re small enough that you don’t notice, but they add up fast. Eventually, I switched to Charles Schwab, and I will never go back.
- No foreign transaction fees
- Much better for international use
- Just overall a smoother experience abroad
It’s one of those changes that immediately saves you money without you having to think about it.
Keep your money in the U.S.
This might surprise you, but this is probably the smartest thing you can do. If you work remotely for a U.S.-based job or have income coming into the U.S, keep your assets there. Instead of transferring everything to Spain, just send over what you need for rent, utilities, and basic expenses, and leave the rest in your U.S. account. Why? Because every transfer can come with:
- exchange rate losses
- transfer fees
- unnecessary complications
Less movement = less money lost.
Use your American credit card strategically
This is where things get a little fun. If you can, use a U.S. credit card for most of your day-to-day expenses:
- groceries
- transportation
- travel
- everyday spending
Not only does this help you avoid constant currency exchanges, but you’re also earning points and building rewards. Those points can turn into flights, hotels, and even food credits, which, let’s be honest, is perfect when you’re living your “travel Europe casually” life.
The Simple System
Here’s the flow that works:
- Keep your money in your U.S. account
- Use your U.S. credit card for most purchases
- Transfer only what you need to Spain
- Pay off your credit card using your U.S. funds
That way:
- your money stays centralized
- you avoid unnecessary fees
- everything is easier to manage
But let’s be responsible for a second. This only works if you’re actually smart about it. Using a credit card like this means you must pay it off or at least have the money ready to pay it off. Otherwise, those interest charges will cancel out every benefit real quick. So think of your credit card as a tool, not extra money.
Living in Spain doesn’t mean you need to completely reinvent your finances. Sometimes the smartest move is keeping things simple and working with what you already have. Avoid unnecessary fees, move your money with intention, and let your spending work for you, not against you. Because the goal isn’t just to live abroad, it’s to do it well, without quietly losing money along the way.
Love always,
American Girl Meets World
