The currency chart below is based on August 2007 exchange rates between local currency and Australian dollars (AUS$), Canadian dollars (CDN$), European Union euros (EUR€), New Zealand dollars (NZ$), and British pounds (UK£). Check a large newspaper or the currency converter on websites like www.xe.com or www.bloomberg.com for up-to-date figures.
As a general rule, it’s cheaper to convert money in the US 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 to banks that have no more than a 5% margin between buy and sell prices. Since you lose money with each transaction, convert large sums (unless the currency is depreciating rapidly), but no more than you’ll need. If you use traveler’s checks or bills, carry some in small denominations ($50 or less) for times when you are forced to exchange money at disadvantageous rates, but bring a range of denominations since charges may be levied 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.
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, 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. Traveler’s checks are readily accepted in all regions of the US. 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. MasterCard and Visa 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 the US. Depending on the system that your home bank uses, you can most likely access your personal bank account while traveling. 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 around $500). There is typically also a surcharge of $1-5 per withdrawal.
Debit cards are as convenient as credit cards but have a more immediate impact on your funds. A debit card 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 the US. Ask your local bank about obtaining one.
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 ☎800-843-7587 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. If that is impossible, consider one of the following options.
It is possible to arrange a bank money transfer, in which a bank at home wires money to a bank in the US. 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 also much pricier. Western Union has many locations worldwide. To find one, visit www.westernunion.com, or call in Australia ☎800 173 833, in Canada and the US 800-325-6000, or in the UK 0800 833 833. To wire money within the US using a credit card (Discover, MasterCard, Visa), ☎800-225-5227. Money transfer services are also available to American Express cardholders and at selected Thomas Cook offices.
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 the US (see Getting to the US: By Plane) and a railpass or bus pass. Be sure to factor in gas, which costs about $3 per gallon in the US as of August 2007. Before you go, spend some time calculating a reasonable daily budget.
To give you a general idea, a bare-bones day in the US (camping or sleeping in hostels/guesthouses, buying food at supermarkets) costs about $40; a slightly more comfortable day (sleeping in hostels/guesthouses and occasional budget hotel, eating one meal per day at a restaurant, going out at night) costs around $75; and for a luxurious day, the sky’s the limit. Don’t forget to factor in emergency reserve funds (at least $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. Renting a bike is cheaper than renting a moped or scooter. 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 indulge before going out (known colloquially as “pre-gaming” among college students). That said, there is no way to get around spending money. Though staying within budget is important, don’t do so at the expense of your health or a great travel experience.
In the US, it is customary to tip waitstaff and taxi drivers 15-20% (at your discretion). Tips are usually not included in restaurant bills unless you have a large party (generally six or more). At the airport and in hotels, porters expect a $1-2 per bag tip to carry your bags—more if the bags are heavy. Bargaining is generally frowned upon and fruitless, except in open-air flea markets and farmers’ markets.
State sales tax ranges 4-10% in the US, though some states have no sales tax, and many states do not tax grocery items, clothing, or prescription drugs. Many states and counties, especially in the South, charge a tax on hotel rooms; rates vary 3-18%. Sales tax is not usually included in the listing prices in Let’s Go.
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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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