What is the easiest way to deal with money when staying long-term in Mexico?

Question

I'm a college student, and I'm going to be studying abroad in Mexico for a semester. What is the easiest way to deal with money there? It seems that the cheapest way is to just use a credit card as much as possible (there is a fee for using a credit card, but there is also a fee for using an ATM or getting a wire transfer), but I'm wondering if it might make sense to convert a good amount of money at a bank or currency exchange in the states before going to Mexico, or if the exchange rate there would be as significant as the fee of a credit card or whatever. Can anybody help me?

Also, any tips in general about living in Mexico are appreciated. I've taken a preparation course and done some reading, so advice such as "Don't drink the water" is rather redundant, but if you have some little-known advice, I'd appreciate it.

Thanks!

Answer 1

You don't say where you will be staying, it it happens to be Cuernavaca, sign up at http://groups.yahoo.com/group/CuernAds/ to get in touch with the foreign community here.

About bringing money in to Mexico, I always use my credit card at the window in the bank.  They charge about $4.50 for the service and I have gotten up to $5,000 US at one time.  The exchange rate is okay and there's no additional charges.

You don't want to use your card just anywhere, it can be cloned and you'll find you just bought a bunch of stuff you never knew about.

The best exchange rates are at the airport in Mexico city.

Best advice?  Learn Spanish!  Get a Mexican girlfriend!

Answer 2

Just use your ATM card to get cash.  When I was down there, the fee for getting money out was minimal, and the exchange rate made up for it.  For example, if I got out 1000 pesos, I would just estimate it as $100 U.S.  It would actually be about $95, then with about $2 in fees, the actual total for the transaction was about $97.  Then again, maybe I just had a good bank back home that didn't charge me twice for using another bank's ATM.  Have a back up plan in case you lose your card.  Many places (even some hotels) don't take credit cards.

Tips: be very polite.  Always greet people with "Buenas dias," "Buenas tardes," or "Buenas Noches".  Greet people in stores (or markets) politely before doing business.  It can be hard to break large bills, so plan ahead and save some small bills/change for bus rides, bottles of water and other small purchases.  Try different things and have fun!

Answer 3

The easiest way to handle your money in Mexico is to find an international bank that has affiliates in Mexico and USA.  This way you can avoid any transaction fees that would be associated with using ATMs.  Credit Cards should ONLY be used in reputable malls/hotels/restaurants.  You are going to need cash for most transactions.  I would recommend Citibank, HSBC or Bank of America.  HSBC is in Mexico, while Citibank and Bank of Am have Mexican affiliates ( Banamex and Santander).  It helps to do some research on cultural differences before coming (little things that can be offensive etc.) because you might be surprised.  Some Mexicans get annoyed at foreigners because they "slam doors".  Cultural research can also help ease culture shock and allow your time to be more enjoyable.  No extra advice for living in Mexico-- come to Mex with no expectations and enjoy the undiscovered!

Answer 4

This must be an exciting time for you!  It sounds like you've done some background work.  I'd also advise speaking to someone who, like you, has lived in Mexico.

Typically when I travel internationally, I exchange enough cash at the airport to get me to my destination and a little extra.  I put spending money in my front pocket and the rest in a money belt tucked inside my pants.  We spent a week in Mexico City and took day trips to Cuernavaca and Taxco.  It's not wise to flash money.  Though we had no issues, I'd remove my money in a restroom or behind closed doors just to be safe and not draw attention to myself.   My primary goal is to remain safe.

Answer 5

All good tips here. My best is...tip everybody, all service people, kid in the grocery store who bags your purchases, guy at the gas station. Small change brings big dividends. Smile a lot, try to learn the language, enjoy the experience.

Answer 6

always be careful in foriegn countries they try to swindle you just like in america but with a different tactic.

Answer 7

The safest and most convenient way of dealing with money is to use your ATM card to get cash as you need it.  Check with your bank to be sure you can use their card here.  If not, then open an account at Bank of America...their cards can be used in Mexico with no problem as they are partners with a Mexican bank...Santander Serfin.  You can use your credit card at major stores like supermarkets and Walmart, but not at the little shops.  Do not bring a large amount of cash with you.  Drink only bottled water...like EVERYBODY else.  Relax, enjoy yourself, and have a great time.