You mentioned you love the Schwab checking account because there is no foreign ATM fee… but does the account charge foreign exchange fees? Also, are you able to use your credit cards in Peru? Do you have one with low/no foreign exchange fees?

First off, here is my “D is for Dinero” post for those of you reading along.

More on the Schwab Investor Checking

The Schwab account also doesn’t charge a foreign exchange fee. Seriously best account for foreign travel, ever.

Paying for Things in Peru

We never use our credit cards here. This was a big switch for us, as we used to put everything on our cards and pay the balance each month for the cash back!!

We switched to using completely cash for a couple of reasons. One being that our credit cards both charge foreign exchange fees. And second, cash is way easier to use down here.

Using our debit card at the grocery store, for example, takes four steps.

1. Swipe card into their store system
2. Swipe my card into the regular Visa system
3. Show them my passport, sign and write passport number on the slip
4. Enter verification code into the store system to say the credit payment went through

It’s messed up. Not to mention, we do a lot of shopping at small shops/restaurants that only take cash (with exact change). Cash is king! Perfect change is its Queen here in Peru!

Managing Expenses

Are you just managing your US bills/expenses via online banking/online sites?

Yes. We made sure all of our remaining US expenses (student loans, condo fees, mortgage, credit card bills) could be paid/managed online.

We also gave my mom a book of checks that she could use for us in an emergency.

Did you create a budget for while you are down there?

We didn’t create a budget, per se, before coming down. However, we did our best to project what our expenses would be for rent, travel, phone, food, etc. And we’ve adjusted since.

Did you have to alert your bank & credit card companies about being in Peru?

I don’t know if we had to do this, but we did it anyway to make sure the money flow wouldn’t stop!!