The United States is a popular tourist destination and for good reason. There are many things to see and do in this vast land, from visiting world-famous landmarks like the Statue of Liberty and the Grand Canyon to exploring vibrant cities like New York City and Los Angeles.
If you’re planning a trip to the US, you have to start thinking about how you’re going to pay for your expenses though. Below is our handy guide to travel money in the US.
Draw up a budget
Before you embark on a trip to the U.S., make sure that you draw up a budget for your estimated travel costs. This budget should e.g. include all your transport costs, accommodation, meals, tips, entrance fees to tourist sights, and buying gifts for your family and friends back home. Once you have a provisional budget, add at least 20% to make provision for unexpected expenses.
Do I need travel money?
Yes, if you’re planning to visit the United States you will need travel money. The US dollar is the official currency of the U.S., and it’s not possible to use other currencies like the euro or the British pound while you are there.
How much travel money do I need?
The amount of travel money you will need depends on the length of your stay, your travel style, and your spending habits. However, as a general rule of thumb, you should budget around $100 per day. This includes things like transport, accommodation, meals, tips, and entrance fees – but it does not include a lavish lifestyle. You can easily pay a few hundred dollars a day for accommodation alone.
Why do I need travel money?
There are a few good reasons why you need travel money when visiting the US. First, you are bound to come across businesses that don’t accept credit cards. Some businesses in the US countryside, such as taxis and small shops, for example, may not even have credit card machines.
When will I need cash?
You’ll need cash during your U.S. trip for a few different reasons. First, you are going to need cash to tip service workers. In the US, it’s customary to tip wait staff, taxi drivers, and other service workers. Second, you may need cash to pay for small purchases, such as souvenirs or snacks. Finally, you are also going to need cash if your card is declined for whatever reason.
When will credit or debit cards be OK?
You can use cards in the majority of businesses in the U.S. There are, however, a few exceptions, such as small shops and sometimes also taxis. You may also have to pay a small surcharge for using your credit card.
How much should I budget for tipping?
The amount you tip in the US will depend on the quality of the service you receive. As a general rule of thumb, however, you are expected to tip waiters 15-20% of the bill, taxi drivers 10%, and other service workers $1-2 per service.
What other expenses will require cash?
In addition to tipping, there are a few other expenses that might require cash. These include:
- Public transportation fares
- Entrance fees to attractions
- Souvenirs
- Snacks, particularly street food
- Laundries
- How can I get the best exchange rate
The easiest way to get the best exchange rate is to compare rates from different currency exchange services before your trip. You can also use a travel money card, which sometimes offers better exchange rates than traditional credit cards.
Using a currency exchange service at the airport or at your hotel once you have arrived will undoubtedly involve additional costs and fees and you are very unlikely to get the best possible exchange rate.
How to protect your travel money
The United States has its fair share of pickpockets, petty thieves, and fraudsters. That’s why you should take the necessary steps to protect your travel money from theft and fraud while you are traveling there. Here are a couple of useful tips to help you with that:
- Keep your money in a secure place, such as a money belt or a hidden pocket in your bag.
- Never carry all your cash with you at once.
- Be aware of your surroundings and don’t let anyone distract you while you’re handling your money.
- Distraction is an old trick used by money grabbers from across the world.
What to keep in mind when traveling to the US from the UK or Europe
1. A traveler visiting the United States from a foreign country must be able to prove to the U.S. Customs and Border Protection (CBP) officer that they have enough funds available in the form of e.g. cash or credit cards, travelers’ checks, and money orders to pay for expenses such as transport, meals, accommodation, entry fees, etc. before he or she will be allowed entry into the United States.
2. When departing from the UK and traveling to a non-EU country like the United States, you have to declare if you are carrying €10000 or its equivalent at UK customs (around $13000).
3. Upon entering the United States, you will have to declare if you have $10000 or more on you.
International travelers who want to enter the United States have to declare if they are carrying currency or other types of monetary instruments with a total value that exceeds $10,000 on their Customs Declaration Form (CBP Form 6059B). If that is the case, they will have to fill out a FinCEN Form 1052.
Bonus section: Below are a couple of additional tips to make managing your money easier while you are in the United States
Consider using a travel money card
A travel money card is a prepaid debit card that can be loaded with US dollars before you travel. This can be a good option if you want to avoid foreign transaction fees, and it can also be more secure than carrying cash.
Be aware of potentially high ATM fees.
ATMs in the US often charge high fees, so it’s important to be aware of this before you use them. Some banks will charge you a fee for using their ATM, and your own bank may also charge you a fee for using an ATM outside of your home network.
Use your credit card wisely.
Credit cards can be a convenient way to pay for things in the U.S., but it’s important to use them wisely. Make sure you pay your bill in full each month to avoid interest charges and be aware of any foreign transaction fees that may apply if you use it in a foreign country such as the United States.
Be prepared for unexpected expenses
It’s always a good idea to have some extra money on hand in case of unexpected expenses. This could include things like a medical emergency, a flight cancellation, or lost luggage.
The bottom line
Traveling to the U.S. can be a truly unforgettable experience. It is, however, important to be prepared for the different ways in which money is used in that country. By following the tips on this page, you can help to ensure that you have enough travel money and that you know when to use cash and when to use cards. You will also be less likely to become the victim of a pickpocket or other con artist.