Money and Banking
Use your wages wisely. Plan in advance to make sure that you always have money set aside to pay for housing, meals, and any other expenses.
Banking
Open a checking account at a bank as soon as possible. If possible, find a free checking account. It may help to tell the bank that you are a student. Services and fees vary from bank to bank; therefore, check with several different banks to find the best one. Also ask if the account has a minimum balance requirement. Bring your passport and Social Security Card when opening a bank account. Also, bring any credit cards, proof of where you are living (lease, rental agreement, utility bill) and a photo ID.
U.S. banking is regional, not national, so make sure you cash any checks in the town or city where you received them. A check deposited in an out-of-town account can take one week or more to become available. If you are going out of town, be sure to cash checks before you leave or purchase traveler’s checks.
Automatic Teller Cards
Check with your local home-country bank before leaving home to verify if you can use your bankcard at Automated Teller Machines (ATMs) in the U.S.. Also, most U.S. bank accounts provide Automatic Teller Machine (ATM) Cards that can be used to withdraw cash and deposit checks at 24-hour ATMs. If you use an ATM machine that does not have your bank’s name on it, expect to pay between $1 and $5 in service fees.
Use these cards wisely – do not take out more money than you can really afford. Keep banking records. Because ATM machines will allow you to withdraw more than you actually have in the bank, it can be easy to overdraw (which will bring large fees).
Currency
The basic unit of U.S. currency is the dollar. Coins come in the value of 1 cent (a “penny”), 10 cents (a “dime”), 25 cents (a “quarter”), 50 cents (a “half dollar;” fairly uncommon), and 1 dollar. Bills (notes) are printed in denominations of $1, $2 (uncommon), $5, $10, $20, $50, and $100. It is to always useful to carry some quarters. Cash is NOT replaceable! Please do not keep large amounts of cash with you or at home.
Credit Cards
Most Americans have credit cards. They are safe way to make large purchases or to get cash from banks. However, it is almost impossible for you to apply for and receive a credit card in the U.S.. We suggest you bring a credit card that you have used in your home country.
Money Orders and Cashier’s Checks
For large purchases such as your first apartment payment, or the purchase of a car, you may be required to pay via money order or cashier’s check. You can get cashier’s checks at a bank, and money orders at a post office, as well as other places.
Traveler’s Checks
Traveler’s Checks are perhaps the most convenient and safest way to finance your travel. They can be replaced if lost or stolen and can be purchased at any bank with separate list of check numbers. You should buy Traveler's Checks in small dollar amounts. Some establishments do not accept Traveler's Checks. Ask before you shop. Where an establishment says “no checks accepted,” this usually refers to bank checks.
Sales Tax
Visitors to the U.S. are surprised when a purchase costs more than the marked prices. This is because sales tax is added on when you purchase goods and services. Sales taxes vary from state to state and region, from 3% to 9%. Please note that tax refunds at the end of the year for sale taxes are not available.
Tipping
Americans generally tip the waiter/waitress 15-20% of the price of the meal, excluding the sales tax. Similar practices apply to bartenders, taxi drivers, hair stylists, and other “service industry” professionals.
Getting Money From Home In A Hurry
- Western Union This service makes it possible to transfer money from your home country to anywhere in the United States within 15 minutes, on any day of the week. There is a charge, which varies with the amount of money sent. Call 800-325-6000 for more information.
- Wire Transfer This allows you to transfer money from a bank in your home country to a bank in the U.S.. This can often take a week or longer. The charge varies from bank to bank, and you may be charged by both the receiving and sending banks. Not all banks offer this service – check in advance.
- Bank Drafts These can be bought from your home country bank and then mailed to you by the Post Office’s express service. This usually takes between three and seven days. Note that participants may sometimes have difficulty cashing them in small towns.
