The currency chart below is based on August 2007 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, or a large newspaper for the latest exchange rates.
As a general rule, it’s cheaper to convert money in Mexico 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 the first 24 to 72 hours of your trip.
When changing money abroad, try to go only to banks or casas de cambio that have at most a 5% margin between their buy and sell prices. Since you lose money with every transaction, convert large sums (unless the currency is depreciating rapidly), but no more than you’ll need. Keep in mind that banks tend to have better exchange rates than casas de cambio.
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 to the euro or other currencies.
Traveler’s checks are one of the safest and least troublesome means of carrying funds. 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. Many provide additional services, such as toll-free refund hotlines abroad, emergency message services, and assistance with lost and stolen credit cards or passports. Traveler’s checks are readily accepted in larger commercial and urban areas. Purchase checks in US dollars; many casas de cambio refuse to change other currencies. Also, it’s probably best to buy most of your checks in small denominations (US$20) to minimize your losses at times when you can’t avoid a disadvantageous exchange rate. Ask about toll-free refund hotlines and the location of refund centers when purchasing checks, and 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. MasterCard (a.k.a. Cirrus in Mexico) and Visa (a.k.a. PLUS) are the most frequently accepted; American Express cards work at some ATMs and at AmEx offices and airports.
ATMs are widespread in Mexico, even in small towns, and can be a convenient way to change money. Depending on the system that your home bank uses, you can most likely access your personal bank account from abroad. 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 (usually US$500). There is typically also a surcharge of 7.50 pesos to withdraw and 3 pesos to check your balance.
Debit cards are as convenient as credit cards, and can be used wherever its associated credit card company (usually MasterCard or Visa) is accepted, yet the money is withdrawn directly from the holder’s checking account. Debit cards often also function as ATM cards and can be used to withdraw cash from associated banks and ATMs throughout Mexico.
The two major international money networks are MasterCard/Maestro/Cirrus (for ATM locations ☎800-424-7787 or www.mastercard.com) and Visa/PLUS (for ATM locations ☎800-847-2911 or www.visa.com).
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. Failing that, 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 Mexico. 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. Expect transactions to take between one and three days to complete. Money transfer services like Western Union are faster and more convenient than bank transfers—but also much pricier. Western Union has many locations worldwide and works with “Dinero en Minutos” in Mexico for wire transfers. To find one, visit www.westernunion.com, or call in Australia ☎+61 1800 173 833, in Canada and the US 800-325-6000, in the UK +44 0800 833 833. To wire money using a credit card (Discover, MasterCard, Visa), call in Canada and the US 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 branches. In Mexico, money transfer services can usually be found at Banamex and Bancomer banks nationwide.
In serious emergencies only, the US State Department will forward money within hours to the nearest consular office, 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 Service division of the US State Department (☎202-647-5225, toll-free 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 Mexico (see Getting to Mexico: By Plane) and a bus pass. Before you go, spend some time calculating a reasonable daily budget.
To give you a general idea, a bare-bones day in Mexico (camping or sleeping in hostels/guesthouses, buying food at supermarkets) would cost about US$15-25 (160-370 pesos); a more comfortable day (sleeping in hostels/guesthouses and the occasional budget hotel, eating one meal per day at a restaurant, going out at night) costs US$30-40 (375 pesos); 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 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 student or youth admission. Drinking at bars and clubs quickly becomes expensive. It’s cheaper to buy alcohol at a supermarket and imbibe before going out. 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.
Ah, the age-old question: To tip or not to tip? In Mexico, it can be hard to know what to do. Overly eager tipping can be offensive (never, for example, throw a couple of pesos at someone you just asked for directions), but many people make their livings assisting tourists in exchange for tips. In general, anyone who offers a service and then awkwardly waits around afterward is expecting a tip.
In a restaurant, waiters are tipped based on the quality of service; good service deserves at least 15%. Taxi drivers are generally not tipped, as they do not run on meters—when hailing a taxi, settle the price of the ride beforehand, lest you get pegged as a tourist and charged exorbitantly. Regardless of the quality of service, never leave without saying “gracias.” In Mexico, skillful bargaining separates the savvy budget traveler from the timid tourist. If you’re unsure whether bargaining is appropriate, observe locals and follow their lead, especially in markets.
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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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