First and foremost, just a reminder that, in line with the rest of the European Union, Italy’s currency is the Euro (€), often shortened to EUR when purchasing currency. You will find Euro bank notes in the following denominations – 5, 10, 20, 50, 100, 200 and 500 (although we’re yet to lay our hands on the last two!) There are also 1 and 2 euro coins. Each euro is then divided into 100 cents. Cents come in coins of 1, 2, 5, 10, 20 and 50. We would always advise ordering your euros online before your holiday. We recommend using TravelFX, who along with excellent rates, offer a next day delivery service so perfect even for a last minute getaway.
How much money should you take on holiday?
How much money you should take on holiday with you is one of the frequent questions our clients ask us. Our first piece of advice is not to carry more cash with you than you would normally carry back home. Yes – it’s sensible to carry a small amount of cash for smaller cafes and restaurants, some public transport options, for purchases at local markets and for taxis who may prefer not to accept credit card payments. But, carry too much and, whilst crime is rare, you may run the risk of being a victim of pickpockets.
Credit cards are widely accepted in hotels, restaurants and shops in Italy negating the need to bring vast sums of cash with you. In fact, by law, all businesses in Italy are required to accept card payments. In reality, you may find that the occasional one doesn’t (or claims that their card machine is out of order) which is why a small amount of cash is helpful. Incidentally, if you want to pay by card in a taxi, it’s worth triple checking with the driver before you get in to avoid any problems on arrival at your destination.
Just be aware that a number of Italian businesses may not accept all credit cards though. Whilst VISA and Mastercard are widely accepted, the same is not necessarily true for American Express and Diners Club card holders. Due to their fees, many Italian businesses won’t offer the option of payment using these methods.
In other words, our advice is that, when travelling to Italy, you take a mixture of cash with you along with currency on a pre-paid currency card and a standard credit or debit card. Having a variety of payment methods will always give you a Plan B should one of them fail. We highly recommend either a WISE card or a REVOLUT card. Both are super easy to use and allow you to top up in your local currency, exchange that money and spend it in euros.
Incidentally, if you’ve forgotten to get some euros ahead of travelling, don’t be tempted to exchange your money for euros at the airport before you leave. The exchange desks here are working on the assumption that there is very little competition and you’re a captive market, so don’t tend to offer good value for money. Instead, you would be better off waiting and withdrawing money from an ATM in Italy instead. .
Using an ATM in Italy
If you need to withdraw money on arrival, or if you run out of cash and need additional currency during your stay, you don’t need to worry as you can easily access more.
Most people will find a similar array of financial services to those you already find at home. If you need to withdraw money, look for a bancomat (ATM). ATMs attached to a post office in Italy do not impose fees on foreign transactions so it’s worth looking for one of these. The next best option is an ATM attached to a bank whose fees on foreign transactions tend to be minimal.
However, one word of caution. If the ATM asks if you want to be charged in your home currency or in euros, we recommend that you choose the latter. This will mean that you will receive your currency at your bank’s exchange rate rather than the exchange rate of the ATM you are using. This will usually be far less favourable than the terms you have in place with your own provider. And try and avoid standalone ATM kiosks or ATMs that you find in convenience stores. These tend to charge the highest fees.
We recommend that when withdrawing cash, you also ask for an amount that isn’t divisible by 50 (such as 80 euros rather than 100) just to ensure that the machine spits out some smaller denomination notes rather than just giving you fifties. This is because some smaller establishments can find it difficult to provide change if you hand over a large denomination bill.
Keep any cash that you don’t need securely locked in a safe back at your hotel or Italy villa rental if it has one.
Paying by credit card in Italy
Just as we recommend you accept ATM charges in the local currency rather than your home currency, the same is true when you pay using your credit card too. You may find that you’re often asked whether you would prefer to pay in your home currency or in euros. Whilst it may seem more convenient and reassuring to pay in your home currency as you’ll know exactly what it’s costing you there and then, you’ll usually find that selecting this option will cost you more in the long run. This is because the exchange rate fees are being set by the merchant (in the same way as before they were set by the ATM operator) instead of your own bank or card issuer. If you think about it, your bank wants to keep you happy and so is careful about what charges it imposes. In contrast, the merchant you are purchasing through doesn’t have these same concerns and so will typically charge you more or impose hidden fees.
Tipping in Italy
There is no expectation to leave a tip in Italy, but we think it’s a rather nice gesture to make. If you’ve enjoyed good service, then adding on a few euros to your restaurant bill seems the right thing to do.
Or if you’ve taken a taxi, then rounding up the total from 13 to 15 euros or from 27 to 30 euros for example is a nice way of expressing your appreciation. Likewise, tips for hotel staff or villa rental staff is not expected but leaving a few euros each day for the cleaning team will be gratefully received by them.
How to make your money go further in Italy
We think that Italy offers excellent value for money. Prices in restaurants can vary a lot dependent on location but it’s still possible to purchase a pizza in a restaurant for a handful of euros, whilst pasta dishes are typically between 8 and 15 euros. Meat and fish dishes tend to be a little more and are typically between 15 and 20 euros.
If you’re travelling to Italy on a budget, there are plenty of ways to save a few pennies. You may have noticed that when enjoying their daily espresso, most Italians tend to stay stood at the bar. This is because you will pay less if you choose to stand at the bar than sit at a table. And, to ensure you don’t pay over the odds for your food (and also to ensure you enjoy the best quality dishes), try and eat away from the main tourist hotspots where you will typically find inflated prices and poorer quality food. Instead head to the quieter back streets to enjoy dinner.
If you’re staying in a villa in Italy and are looking to dine in rather than eat out, then try and shop for your food at the local market which you’ll find cheaper (and far fresher) than the supermarket.
You can also save money on your travel costs too. There are different types of trains in Italy and costs will vary dependent on which you choose. The options include Alta VelocitĂ (AV), Italo, Eurostar Italia (ES), InterCity (IC) and last but not least, the Regionale. We recommend using Trainline to book your tickets in advance. The Alta VelocitĂ will be the fastest option but they’ll also be the most expensive so if you’re not in a hurry to get from A to B you may want to consider one of the cheaper alternatives instead. It is also worth remembering that some trains also require a reservation in advance.
And it’s worth being a little bit savvy if you want to save money on your days out in Italy too. One thing that can catch out holidaymakers is that the fact that many of Italy’s beaches have entry fees to cover the cost of your sun bed or umbrella. However, there are still areas where you can enjoy the beach for free so just search a little more carefully to avoid paying if you don’t have to.
What should I do with any ‘leftover’ foreign currency?
If you have euros left and it’s time to head home, the one thing we recommend you don’t do is to head to a foreign exchange bureau to exchange it back into your home currency.
Likewise, if you have home currency with you and were planning to exchange it for euros, don’t!
We’re yet to find an exchange bureau that offers good value for money. If it’s advertises a ‘no fee’ service, it will only mean that the exchange rate is ridiculously bad. And if the exchange rate seems fair, it will no doubt mean that they’re imposing a huge fee on exchanges! Instead, keep your euros for your next trip (or, even better, spend it on some more souvenirs to take home with you!) And keep your home currency for when you get home.
By planning ahead and ordering euros online before you go away, you will often find you are more organised when it comes to deciding how much cash you will need. It also makes for less money talk on holiday – definitely not my favourite topic for cocktail hour!