preparing your finances

In January of 2002, twelve countries of the European Union (Belgium, Germany, Greece, Spain, France, Ireland, Italy, Luxembourg, Netherlands, Austria, Portugal, Finland) converted their currency to the Euro. The Euro is almost equivalent to the dollar ($1= ±€1) but beware that the international currency rates fluctuate daily and the Euro has recently been as high as $1.25/€1. It is important to remember that the Euro is still fairly new to Italy and you need to make sure to count your change.

Although it is more advantageous to convert money in Europe than it is at home, it is important to have enough Euros for the first 24 to 48 hours of your trip.You should plan on having the equivalent of $100 to be able to pay for cab rides from the airport to school and possibly school to your apartment, as well as cash for any other issues that could arise when traveling.

When changing money abroad it is always best to go to a bank. Although there are change offices all over Florence, they charge a commission and their exchange rate is usually high. This rule also applies to hotels, airports and train stations, where rates are usually higher than at a bank. To avoid losing money from transaction charges, it is best to change large sums of money at one time.

Traveler's checks

Traveler's checks are an easy and safe way to carrying money while traveling. Visa and American Express (American Express has an office in the center of Florence) are the most recognized companies and your home bank will have one or the other available to buy. If stolen, your company will be able to refund your money as well as provide such assistance as toll-free refund hotlines abroad and other emergency services.

Credit cards

Credit cards are generally accepted all over Italy although some restaurants and budget hotels will only accept cash. Credit cards will sometimes be required when reserving hotel rooms or rental cars. Credit cards can also provide cash advances through ATM machines. Although the transaction fee is hefty (around $10 for the advance and 2-3% extra for foreign transactions), having the option available can prove to be a great relief in event of an emergency. In order to make cash advances with your credit card number, contact your credit card company to obtain a Personal Identification Number (PIN).

ATMand Debit Cards

ATM machines (BancoMat in Italian) are quite common in Italy and are easy to find and use. Before leaving home check with your bank to make sure you have an international pin code and that your card is compatible with Europe's systems. Although cash machines may seem to be the easiest answer for cash you should keep a few things in mind:

• Most bank machines have a cash limit ($300 sometimes less) and all transactions will be accompanied with a surcharge of $1-5 depending on your bank.
• You will not be able to see your bank statement on the receipt so be sure to keep track of your withdrawals.
• Although bancomats are readily available in Italy, they are also frequently unreliable if the phone lines or computer links aren't working.

The Debit Card allows your cash card to also be used as a credit card. Instead of paying a monthly bill, the Debit card takes the money directly and immediately from your bank account. Although convenient, these cards can be extremely risky. If your card is stolen and used to charge, the money is NOT recoverable (up to a maximum stated by your bank) whereas a credit card company is insured and will not charge you for purchases made with your stolen card. If you have a Debit card and find it indispensable, be aware of the risks and exercise caution.