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Financial Shock is a kind of anxiety that results from being unfamiliar with the currency, exchange rates, prices, and standard of living of a foreign country. It manifests itself in a variety of ways. Undoubtedly, the most common aspect of financial shock is one's utter unfamiliarity with the money. It looks and feels different and has a seemingly nebulous value. Thus, it can feel like you are trading your dollars in on Monopoly money when you go to the bank. At the same time, there is another related aspect of financial shock that can overtake you; namely, the feelings that "the prices here are exorbitant!" and "everything is cheaper back in the (good old) US of A!" And though these feelings may not be totally groundless, until you have become comfortable with a new currency and have developed a strong "feel" for it, you will have to dismiss them as symptoms of financial shock.

Moreover, there is the matter of perceiving standards of living; for even though you may soon feel comfortable dealing with a foreign currency, it will not be until you can put the standard of living from which you came and the standard of living where you are or will be, into its proper perspective, that you will be able to understand the true value of the "foreign" currency with which you are dealing.

For instance, in a country where the standard of living is considerably lower than it is in the US, equivalent amounts of money (dollars to pounds, francs, cedis or pesos) at the bank are not necessarily equivalent in terms of their "real" value. In fact, because a foreign national may earn only half as much (on the average) as an American does, the equivalent value of the currency is worth far more to him in "real" terms than it is to you. Therefore, no matter how you find prices to be abroad, they may be easier for you to afford than for the local populace. This has developed the "Ugly American" image, the traveler who has too much money and throws it around. Finally, there is a last symptom of financial shock that you need to be cautioned against. It doesn't happen to everyone; nor can it be predicted. And though its causes are many: "funny money," exchange rates, floating dollar values, etc. In any case, the end result is fairly basic. It is known as "abandoning reason to the wind and spending money like crazy," and those individuals who succumb to this temptation are going to encounter the most awful financial shock of all -- going broke in a foreign country!