Moved to the U.S.? These 5 apps and tips will help you look after your finances and save money

Author: TransferWise / Source: VentureBeat

Presented by Transferwise

Moving to the U.S. can present a host of challenges in managing finances, from establishing a bank account, to renting an apartment, to sending money internationally. Here’s our cheat sheet to make sure you have the best info and resources.

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1. Don’t get stung by currency conversion costs when you’re sending money internationally

Sending money through a bank or traditional provider can often be an expensive (and slow) process. If you’re transferring money when you’re moving to the U.S. or still receiving a salary from overseas, currency conversion can take out a hefty chunk of your money.

The reason for this is that on top of the wire fee that’s generally charged by banks and services like PayPal or brokers, there’s often a hefty exchange rate mark-up. It’s usually pretty hard to know exactly how much this will cost you, but it can be as much as 3 to 5 percent depending on where you’re sending money. That’s a hefty chunk of your money to lose when you’re moving your money across borders.

TransferWise is a lower-cost alternative. It typically charges between 0.35 and 1.5 percent depending on the amount you’re sending and which currencies you’re converting.

Crucially, however, the company always uses the real exchange rate — that means you don’t lose any money on currency conversion, like you do with traditional providers. The upshot is that more of your money makes it to the other side.

2. Choose the right financial institution. It might not always be your bank.

The rise in financial tech (fintech) companies in the past 10 years has seen an upsurge in the number of younger, tech-smart companies that are each developing alternatives to specific financial services.

Often, these companies are cheaper or easier to use, or help you stay on top of your finances without the hassle of going to your local branch. For example, companies such as Mint are helping improve the experience of tracking and managing your money. Then there are wealth management alternatives that are simplifying the process of investing and saving your money, such as Wealthsimple and Betterment.