Hi Geoff! Another fellow study abroader! Yea
I studied last summer in Bilbao, and am leaving soon to spend next semester in Granada...sooo I know where you are coming from with this question.
I would say bring it all- travelers checks, cash, a credit card, and most importantly an atm card- all from your bank in the USA. That way you can withdrawl money from your account their in euros, while in spain. I dont know if opening a bank account in Spain would even be possible...? However...
-I would only bring a smaller amount of travelers checks as I found them a pain to have to cash- but they are good in emergencies.
-Bring enough cash in euros to get you through the first couple days or week- but not so much that you are out alot if it is stolen, etc.
-Bring a credit card for emergencies also. I found VISA and Mastercard to be accepted most places.
-The method I used most by far, and also found to be the easiest was an atm card. You can use it at almost any ATM in spain (and they are all over), to withdrawl money from your bank account back home in Euros. They also had the lowest fees compared to exchanging money at banks.
-Some things to keep in mind....before you leave, call your bank, credit company and let them know that you will be using your card overseas...so they don't think it was stolen. Also make sure your ATM card has a 4 digit pin that you can use internationally. Check and see what your bank is going to charge you to withdrawl money overseas. Some are higher than others...mine was pretty low-only a buck.
Have fun and good luck!!!!!!
Kelly