The One Budget Tip That Cuts Europe Trip Costs Without Sacrificing Fun
- Budget airlines make traveling to Europe more affordable for all types of travelers, with various strategies to save money on flights, accommodations, and meals.
More and more people are realizing that taking a trip to Europe doesn't need to be an incredibly expensive endeavor. Especially with the accessibility to budget airlines throughout America that fly to major hubs in Europe–these trips are feasible for even the smallest of travel budgets.
As a budget traveler myself, I've honed in on what I choose to save on versus what I like to spend a little bit more money on. I've traveled to over 40 countries, and many of my trips have been solo–so I'm not splitting costs with anyone. I always start with the cheapest flight possible, which tends to be one of the biggest expenses on a trip. After that, accommodation tends to put a dent in people's wallets, especially if you're solo. Depending on the area that I'm traveling to, I switch between staying in hostels and cashing in credit card points for a stay at a nice hotel. For meals, I tend to splurge a bit, because experiencing top-tier cuisine in the place I'm traveling is half the point of visiting!
Related: The One Thing to Splurge On in Europe, According to Rick Steves
Splurging on an Aperol spritz in Italy
Some people may not agree with the way I budget travel, as they may have different priorities for their trips. For some, accommodation is everything, and they'd rather stay in a nicer, more expensive place. For others, food doesn't matter as much, and they'll choose to get quick, cheap meals throughout their travels instead. What if I told you, however, that there was a simple way to save money on a Europe trip that doesn't include any sort of decision making? I have a tip that'll cut your trip costs, all without sacrificing any fun.
Choose The Local Currency When Making Credit Card Transactions
In a viral Tiktok video created by Milan Singh, a creator who shares tips and tricks on how to capitalize on your finances, he shares one of the best travel tips out there. In the video, he shows a scenario in which an American is visiting Paris, and is paying for for something with their credit card. The merchant asks whether they would like to pay in US dollars or Euros. The American then chooses Euros, and the merchant is confused. They try to get the American to pay in dollars, since that's where their credit card is from, but the American knows better.
Ultimately, Singh explains through the video that if you choose to complete your transaction in dollars, the conversation rate will be up to the merchant, and will most likely not work in your favor. There may also be other fees that they can charge, since you are paying in a different currency. If you choose to pay in Euros, or whatever the local currency is to where you're visiting, you will end up saving money. This choice allows you to get the best possible market exchange rate and there will be a minimal amount of fees.
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For example, imagine you are paying for an item that costs 50 Euros. If you choose to pay in US dollars, the exchange rate on the merchant's machine may then convert that to be worth 60 US dollars. Then, there will be a transaction fee added on top of that, which could add around 3% to your purchase. In the end, you will end up paying around $62 for your item. If you choose Euros, on the other hand, your bank will give you the current market conversation rate, which will almost always be better than what the merchant's machine offers. In this situation, let's say the current rate made your item worth $55. By choosing the current currency, you would save $7 on this one transaction. Now, think about all of the things that you buy throughout the day on a trip. These small amounts add up, and could end up saving you hundreds of dollars.
Related: Rick Steves' Top Travel Rule for Avoiding Crowds in Europe
Make Sure You Have A Travel Credit Card With No Foreign Transaction Fees
Now, this tip is only truly worth it if you have a credit card that has no foreign transaction fees. There are many wonderful travel credit cards out there, and they all offer different perks. Years ago, I performed in a Broadway show that was touring through Japan. I ended up being the only person in my cast who had a travel credit card, and all of my cast mates deeply regretted the fact that they didn't get one beforehand. I ended up saving tons of money on each transaction, simply because I wasn't being charged a foreign transaction fee.
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Make sure that you don't make the same mistakes as my cast, and secure yourself a travel credit card with no transaction fees. Not only will it save you money in the moment, but you will also earn points that you can cash in for future travel expenses. Using this type of card, matched with choosing the local currency on each transaction, will end up saving you hundreds of dollars on each trip. The best part? You don't have to sacrifice a single fun thing in order to save this money.
Related: 3 Best European Destinations for Budget Travelers, According to Travel Guru Nomadic Matt
Sources:
This story was originally reported by Parade on Sep 9, 2025, where it first appeared in the Travel section. Add Parade as a Preferred Source by clicking here.
