How Much Cash to Bring on Vacation Abroad
When clients start planning an international trip, one question comes up almost every time: “How much cash do I actually need to bring, and can’t I just use my credit card for everything?”
Here is the short answer. For most international trips, plan to carry enough cash to cover tips and small cash-only purchases, and put everything else on a Visa or Mastercard with no foreign transaction fees. For a couple spending a week in Europe with a few transfers and guided tours, that often works out to roughly €350 to €400 in cash for the week, depending on the itinerary.
Below, I explain how we help our clients calculate their own number, which card to rely on overseas, and why the cards that work everywhere at home don’t always work as well abroad.
Key Takeaways
- Use cash for tips and incidentals; use a card for nearly everything else.
- Build your cash budget from your itinerary: transfers, guides, housekeeping, restaurants and daily small purchases.
- Pack a credit card with no foreign transaction fees. Many cards add about 3% to every foreign purchase.
- Make Visa or Mastercard your primary card abroad. American Express and Discover are accepted far less consistently overseas.
- Always pay in the local currency when given the choice, and use bank ATMs for additional cash.
Do You Still Need Cash When Traveling Abroad?
Yes, though less than you might think. In most destinations, hotels, tours, sit-down restaurants and shops accept cards. Cash remains the expected way to tip, and some smaller businesses, markets, cafés, taxis and public restrooms either don’t accept cards or have a minimum purchase.
Cash is most important for:
- Transfer drivers who meet you at an airport, cruise port or train station
- Tour guides and private drivers, tipped at the end of a tour
- Restaurant staff, when service isn’t already included on the bill
- Room service and housekeeping
- Incidentals such as coffee, snacks, market purchases, small souvenirs and taxis
How Much Should You Tip in Europe?
These are the amounts we share with our clients from the Life is Better Traveling European Gratuities Sheet. Tip in the local currency, in cash, and adjust for the quality of the experience.
Drivers
| Situation | Suggested Tip |
|---|---|
| Transfer driver (airport, port or station) | €2–€4 per piece of luggage |
| Tour driver, not your guide, up to 4 hours | €5–€15 |
| Tour driver, not your guide, 4 to 8 hours | €15–€30 |
| Tour driver, not your guide, full day | €50 and up |
| Driver who is also your guide, up to 4 hours | up to €75 |
| Driver who is also your guide, 4 to 8 hours | €75–€150 |
| Driver who is also your guide, full day | €100 and up |
Tour Guides
| Length of Tour | Suggested Tip |
|---|---|
| Up to 4 hours | €30–€75 |
| 4 to 8 hours | €75–€150 |
| Full day | €150 and up |
Hotel and Dining
| Service | Suggested Tip |
|---|---|
| Bellman or luggage hold | €2–€4 per piece of luggage |
| Housekeeping | €2–€5 per day |
| Restaurant staff (if service isn’t included) | 10–15% of the bill |
| Room service (if service isn’t included) | 5–10% of the bill |
Many European restaurants include a service charge on the bill. Check before tipping; if service is included, rounding up for good service is plenty.
How Do You Calculate How Much Cash to Bring?
Add up the tips your itinerary calls for, then add a daily amount for incidentals. Here is an example for a couple spending seven nights in Italy:
| Item | Estimated Cash |
|---|---|
| Two airport transfers (2 bags each way) | about €12 |
| One half-day guided tour | about €50 |
| One full-day private driver-guide | about €100 |
| Housekeeping, 7 days | about €21 |
| Restaurants and room service, where service isn’t included | about €50 |
| Incidentals, about €20 per day | about €140 |
| Total for the week | about €350–€400 |
A family, a longer trip, or an itinerary with more private touring will need more. A trip built mostly around an all-inclusive resort or a cruise will usually need less, since many of those costs are handled differently. This is why we calculate cash for each client’s actual trip rather than using a one-size rule.
Why Do You Need a Credit Card With No Foreign Transaction Fees?
A foreign transaction fee is a charge some card issuers add to purchases made in another currency or processed outside the United States. It is typically around 3% of each purchase. On $5,000 of spending during a trip, that is about $150 in fees.
Many travel-focused credit cards don’t charge this fee at all. To check yours, look up the card’s terms online or call the number on the back and ask whether it charges a foreign transaction fee. If it does, pack a different card for your trip.
The same question applies to your debit card. Some banks charge a foreign transaction fee on ATM withdrawals in addition to the ATM operator’s fee.
Is American Express Accepted in Europe?
American Express is accepted in Europe, but far less consistently than Visa or Mastercard. Larger hotels, airlines, international chains and high-end restaurants generally accept it. Smaller restaurants, cafés, independent shops and businesses outside major cities often do not, largely because Amex has historically charged merchants higher fees.
You are welcome to bring your Amex for hotels and larger purchases, but it should not be the only card in your wallet.
Is Discover Accepted Abroad?
Discover has expanded internationally through partner networks, but its acceptance overseas still lags well behind Visa and Mastercard and varies widely by country. It is best treated as a secondary card when traveling internationally.
One recent change is worth knowing: following Capital One’s acquisition of Discover, some Capital One debit cards have moved to the Discover network, and some travelers have reported those cards being declined at ATMs abroad. Check the network logo on your physical card before you travel, not just the name of your bank.
Which Cards Should You Bring When Traveling Internationally?
We suggest our clients pack:
- A primary Visa or Mastercard credit card with no foreign transaction fees
- A backup Visa or Mastercard, stored separately in case one is lost or blocked
- A debit card for bank ATMs, ideally one with low or no international fees
- Your American Express or Discover, if you like, for hotels and larger purchases
Let your bank know your travel dates if it asks, and save the international customer service numbers for each card somewhere other than your wallet.
Where Should You Get Local Currency?
- Before you leave: order a modest amount from your bank, credit union or AAA so you have cash for your first transfer and first day. Ask for small denominations, which make tipping much easier.
- Once you arrive: use ATMs attached to an actual bank rather than freestanding machines in tourist areas.
- Avoid: airport exchange kiosks and hotel exchange desks, which tend to offer the least favorable rates.
- Always choose the local currency when a card machine or ATM offers to charge you in U.S. dollars. That option, called dynamic currency conversion, adds a markup.
In the Caribbean and Mexico, U.S. dollars in small bills are commonly used for tips at resorts and for transfers. We confirm local custom for each destination when we plan your trip.
Frequently Asked Questions
How much cash should I bring to Europe for a week?
For many couples, roughly €350 to €400 covers tips and small cash purchases for a week, with everything else on a card. Families and itineraries with more private tours will need more.
Should I tip in U.S. dollars or local currency?
In Europe, tip in the local currency. Dollars are inconvenient for the recipient to exchange. In the Caribbean and Mexico, U.S. dollars are commonly accepted for tips.
Can I use a credit card for tips?
Restaurants sometimes allow it, but drivers, guides and housekeeping staff are almost always tipped in cash.
Is it better to exchange money before I travel or use an ATM abroad?
Both. Bring a small amount of local currency for your first day, then use bank ATMs abroad for the rest, which generally offer better rates than exchange counters.
What should I do if a card machine asks whether to pay in dollars or euros?
Choose euros, or whatever the local currency is. Paying in dollars adds a conversion markup.
Will my American Express work in Europe?
Often at hotels and larger businesses, but not reliably at smaller ones. Bring a Visa or Mastercard as your primary card.
Let Life is Better Traveling Help You Plan Today!
At Life is Better Traveling, we build a personalized cash and tipping plan into every itinerary we design. Because we know which transfers, guides and services are included in your trip, we can tell you exactly who to tip, how much, and in which currency, before you ever reach the airport. For busy professionals, families, multi-generational groups and travelers who appreciate high-touch service, it is one less thing to figure out on the road.
If you are planning a trip to Europe or beyond and would like a cash and tipping plan tailored to your itinerary, fill out our travel planning form, and we will reach out to you soon.
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Life is Better Traveling is a fee-based travel advisory. We are not financial advisors; please confirm the fees and terms of your own cards with your bank or card issuer.
