Beating the exchange rate studying aboard?

[tightasadrum]

DD heads for Europe to study spring semester 2008. The value of the dollar is pretty low right now against the pound. Is there any way to beat this, or should I just plan to shovel more money across the pond?

For instance, should I look into opening an account in Scotland to hedge against a continuing slide of the dollar? Can this be done? Is there an easier way? The major costs will probably be transacted by UNC, and I pay them. But there will be other expenses. Is it worth the hassle factor? I discussed getting money with USAA this morning. They charge a 1% transaction fee, which I'll bet is pretty good as banks go, when you hit the ATM machine. Any thoughts? Anyone done this?

 

[bpp3]

DD heads for Europe to study spring semester 2008. The value of the dollar is pretty low right now against the pound. Is there any way to beat this, or should I just plan to shovel more money across the pond?

Since it's only a year away it is probably too late to do much about it, but if you want to protect against a sudden further shift you could start buying pounds now, dollar cost averaging your way in until she goes over. Of course the dollar could strengthen by then, too.

As for whether a UK bank would let you (or DD) open an account before having some kind of address there, you'd have to ask them, though in many countries the answer is "no." Everbank may be one choice, or perhaps Citibank has something?

Is it worth the hassle factor?

Is it only one semester of incidental expenses you are talking about? If so, I would also wonder about the hassle factor.

 

[tightasadrum]

Thanks bpp3,

I've come to the conclusion that the exchange rate is one variable I'll just have to live with. DD and I studied the school costs and her travel plans while there for hours last night. I'm resigned to fork over a pile to make this little experience happen. Of course she is working and trying to save too. I hope the UK economy appreciates all we're doing for them. DD is studying economics, so these monetary are turning out to be a career experience for her as well as an adventure.

I see you are writing from Japan. I spent a few weeks there in two different trips in the early 90's. Our company had a sister plant in Yokahama. It was a great life experiences for me. Ohiogazamus, or something like that.