The currency chart below is based on August 2008 exchange rates between local currency and Australian dollars (AUS$), Canadian dollars (CDN$), European Union euro (EUR€), New Zealand dollars (NZ$), British pounds (UK£), and US dollars (US$). Check the currency converter on websites like www.xe.com or www.bloomberg.com for the latest exchange rates.
As a general rule, it’s cheaper to convert money in Italy than at home. While currency exchange will probably be available in your arrival airport, it’s wise to bring enough foreign currency to last for at least 24-72 hours.
When changing money abroad, try to go only to banks or money chargers (cambio) that have at most a 5% margin between their buy and sell prices. Since you lose money with every transaction, it makes sense to convert large sums at one time (unless the currency is depreciating rapidly).
If you use traveler’s checks or bills, carry some in small denominations (the equivalent of US$50 or fewer) for times when you are forced to exchange money at poor rates, but bring a range of denominations since charges may be applied per check cashed. Store your money in a variety of forms; ideally, at any given time you will be carrying some cash, some traveler’s checks, and an ATM and/or credit card. All travelers should also consider carrying some US dollars (about US$50 worth), which are often preferred by local tellers.
Traveler’s checks are one of the safest and most convenient means of carrying funds. However, they can also be one of the most frustrating means of spending money since fewer and fewer shops outside of tourist areas accept traveler’s checks. American Express and Visa are the most-recognized brands. Many banks and agencies sell them for a small commission. Check issuers provide refunds if the checks are lost or stolen, and many provide additional services, such as toll-free refund hotlines abroad, emergency message services and assistance with lost and stolen credit cards or passports. Ask about toll-free refund hotlines and the location of refund centers when purchasing checks, and always carry emergency cash.
Where they are accepted, credit cards often offer superior exchange rates—up to 5% better than the retail rate used by banks and other currency exchange establishments. Credit cards may also offer services such as insurance or emergency help and are sometimes required to reserve hotel rooms or rental cars. EuroCard and Carte Bleue are the most frequently accepted; American Express cards work at some ATMs and at AmEx offices and major airports.
The use of ATM cards is widespread in Italy. Depending on the system that your home bank uses, you can most likely access your personal bank account from abroad. Cirrus and BankMate are two of the most common financial networks. ATMs get the same wholesale exchange rate as credit cards, but there is often a limit on the amount of money you can withdraw per day (around US$500). There is also typically a surcharge of US$1-5 per withdrawal.
Debit cards are as convenient as credit cards but withdraw money directly from the holder’s checking account. A debit card can be used wherever its associated credit-card company (usually MasterCard or Visa) is accepted. Debit cards often also function as ATM cards and can be used to withdraw cash from associated banks and ATMs throughout Italy.
The two major international money networks are MasterCard/Maestro/Cirrus (for ATM locations ☎+1-800-424-7787 or www.mastercard.com) and Visa/PLUS (for ATM locations ☎+1-800-847-2911 or www.visa.com). Most ATMs charge a transaction fee that is paid to the bank that owns the ATM.
If you run out of money while traveling, the easiest and cheapest solution is to have someone back home make a deposit to your bank account. Otherwise, consider one of the following options.
It is possible to arrange a bank money transfer, which means asking a bank back home to wire money to a bank in Italy. This is the cheapest way to transfer cash, but it’s also the slowest, usually taking several days or more. Note that some banks may only release your funds in local currency, potentially sticking you with a poor exchange rate; inquire about this in advance. Money transfer services like Western Union are faster and more convenient than bank transfers—but convenience comes at a price. Western Union has many locations worldwide. To find one, visit www.westernunion.com, or call in Australia ☎+1 800 173 833, in Canada and the US +1-800-325-6000, in the UK +44 0800 833 833, or in Italy at 800 788 935. To wire money using a credit card (Discover, MasterCard, Visa), call in Canada and the US ☎+1-800-CALL-CASH, in the UK +44 0800 833 833. Money transfer services are also available to American Express cardholders and at selected Thomas Cook offices.
In serious emergencies only, the US State Department will forward money within hours to the nearest consulate, which will then disburse it according to instructions for a US$30 fee. If you wish to use this service, you must contact the Overseas Citizens Services division of the US State Department (☎+1-202-501-4444, from US 888-407-4747).
The cost of your trip will vary considerably, depending on where you go, how you travel, and where you stay. The most significant expenses will probably be your round-trip (return) airfare to Italy (see Getting to Italy: By Plane, and a railpass or bus pass. Before you go, spend some time calculating a reasonable daily budget.
To give you a general idea, a bare-bones day in Italy (camping or sleeping in hostels/guesthouses, buying food at supermarkets) would cost about US$50 (€32); a slightly more comfortable day (sleeping in hostels and the occasional budget hotel, eating one meal per day at a restaurant, going out at night) would cost US$90 (€57); and, for a luxurious day, the sky’s the limit. Don’t forget to factor in emergency reserve funds (at least US$200) when planning how much money you’ll need.
Some simpler ways include searching out opportunities for free entertainment, splitting accommodation and food costs with trustworthy fellow travelers, and buying food in supermarkets rather than eating out. Bring a sleepsack to save on sheet charges in hostels and do your laundry in the sink (unless you’re explicitly prohibited from doing so). Museums often have certain days once a month or once a week when admission is free; plan accordingly. If you are eligible, consider getting an ISIC or an IYTC ; many sights and museums offer reduced admission to students and youths. For getting around quickly, bikes are the most economical option. Don’t forget about walking, though; you can learn a lot about a city by seeing it on foot. Drinking at bars and clubs quickly becomes expensive. It’s cheaper to buy alcohol at a supermarket and imbibe before going out. That said, don’t go overboard. Though staying within your budget is important, don’t do so at the expense of your health or a great travel experience.
At many Italian restaurants, a service charge (servizio) or cover (coperto) is included in the bill. Locals sometimes do not give tips, but it is appropriate for foreign visitors to leave an additional 5-10% at restaurants for the waiter. Taxi drivers expect about a 5-10% tip, though Italians rarely tip them. Bargaining is common in Italy, but use discretion. Haggling is appropriate at markets, with vendors, and unmetered taxi fares (settle the price before getting in), but elsewhere, it is usually inappropriate. Hotel negotiation is more successful in uncrowded pensioni. To get lower prices, show little interest. Don’t offer what you can’t pay; you’re expected to buy once the merchant accepts your price.
The Value Added Tax ( VAT; imposto sul valore aggiunta, or IVA) is a sales tax levied in the EU. Foreigners making any purchase over €155 are entitled to an additional 20% VAT refund. Some stores take off 20% on-site. Others require that you fill out forms at the customs desk upon leaving the EU and send receipts from home within six months. Not all storefront “Tax-Free” stickers imply an immediate, on-site refund, so ask before making a purchase.
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For 52 years, we have published the world’s favorite budget travel guides, written entirely by students and updated every year. With pen and notebook in hand and a few changes of underwear stuffed in our backpacks, we spend months roaming the globe in search of travel bargains.
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