Using Money in China

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Money Tips for Expats Living in China

Written by Robert Vance on May 8, 2008 – 2:20 am

“How much money should I take with me to China?” is a common question that I receive when I am working with prospective teachers. Of course, the answer to this question really depends on the person. People who are high maintenance, like to party, and go on buying sprees are naturally going to spend the most money in China. People who do not mind riding a bicycle around town , eating on the street, and buying items in open markets are going to save more money in China. With the rapid development taking place in China, high spenders and low spenders alike find their niches in the local economy of nearly any Chinese city. Throughout my years in China, I have met hundreds of teachers at many different socio-economic levels. Some teachers have plenty of money and are simply working in China for the experience. Other teachers are ‘dirt poor’ but enjoy the fact that they can live at a higher economic level in China based on a foreigners salary. I have met teachers who are paying off hefty college loans or sending a child care payment back to their home country every month. In other words, in a country where foreigner teachers are often in high demand, one does not have to be rich to travel and teach there.

No matter how rich or poor one is, accessing and using money in China can be a very frustrating experience especially for someone who is not familiar with the culture or the financial system in China. Here are some tips that should help make your financial life a little easier in China.

Coming to China for your first time:

–You need to have cash on hand when you come to China. While credit cards are becoming more popular in China, you will still have to pay in cash at train and bus stations as well as at restaurants. It is not necessary to have RMB with you when you first arrive although if you happen to live close to a bank in your hometown where you can obtain RMB, then you should definitely go that route. In my experience I have found that $300 US is a good amount to have on hand when you first arrive.
–Using your ATM Card and Credit Cards is a convenient way to access money and pay for items but don’t forget that a hefty surcharge is most likely being added to your transactions, especially on ATM withdrawals. My bank for example, charges a 50 RMB transaction fee on ATM withdrawals on top of whatever extra fees I am being charged by Chinese banks. This may not seem like a lot but it can add up quickly. Most credit card companies also charge a transaction fee; I have to pay an extra 3 percent on any international purchases I make. With that in mind, it may be worth it to look into finding credit and ATM cards that boast lower international transaction fees. I have heard that Capital One issues an ATM card that carries no fee on international purchases.
–Once you arrive at your destination, it is never wise to carry all of your cash and cards with you. Always have some back up money and even an extra credit card(if you happen to have one) stowed away in a bag. If you do have to carry a lot of money with you, make sure you put it in a safe place. This may sound ridiculous, but I have often stowed wads of cash in my socks as I walk along the streets. Wherever you are in China, your pockets are fair game for thieves; purses with long straps are also easy targets. Be smart and always be aware of where your money is.

Dealing with money while living in China:

–The easiest and safest way to handle your money in China is to open up a savings account at one of China’s many banks. Most banks will allow you to link your China bank account with a bank account back home allowing for the easy transfer of money between the two institutions.
–When you sign up for an account in China, you should be issued a bank card which can be used at ATM machines across the country (usually a 5 RMB surcharge if you are withdrawing money on another network). Most likely, your China bank issued ATM card will have the ‘UNIONPAY’ log on it allowing you to use the card at stores across China. I have found that the banking system in China is relatively safe and reliable. Be a little wary of the ATM machines, in China, however. I have heard stories of foreigners who lost hundreds of RMB when their ATM machines malfunctioned and wouldn’t return their cards. When I can, I always prefer to withdraw money the old-fashioned way; at the counter.
–Credit cards in China are still not very useful. Unlike in the West, where you can use a credit card everywhere (fast good restaurants, shopping markets, etc), there are still a relatively few amount of places that accept international cards. When I do use my international credit card, I usually find that it is more inconvenient than anything else; I used one at a Walmart a few months ago and I had to show my passport and talk with the manager. Paying with cash is much easier.
–Carrying excessive amounts of cash with you in China is never wise but it is always a good idea to have some cash with you in case of emergency. For example, during my early days in China, I would always make sure I was carrying at least enough money for a taxi ride home in case I got lost. Having some change on hand is also important in case you need to make an emergency phonecall.
–Services such as Western Union and Moneygram are available in the big cities in China but actually accessing your money can be an enormous hassle. Just because a bank supposedly participates in one of these wire transfer services does not mean that all or even most of the branches can help you. I recently attempted to retrieve 600 Dollars from a Moneygram wire transfer and after traveling to three major cities in China and being asked to go from bank branch to bank branch, I finally gave up. If someone is going to send you money, the best way is probably for them to deposit the money in your account back home.

If you do a little planning ahead and use some common sense, using money in China is actually quite easy compared to other countries in the world. Wherever you are, you should always doublecheck your receipts and pay attention to where your salary is going and exactly how much you were paid. The financial institutions in China make mistakes just like any other countries. Pay attention and you should have little trouble dealing with the financial system in China.

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