How to Manage Money in Europe: A Practical Guide
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One of the questions I get asked most often is “How much does it cost to travel in Europe?”
Honestly? It’s a lot.
But that answer isn’t very helpful, tempting as it is to give.
Prices in Europe have risen dramatically in the last several years. Gone are the days of Europe on $5 a day (and yes, I remember those days). Also gone are cheap hotels, cheap tickets to museums and attractions, and cheap rail tickets.
Europe is expensive. Accepting that fact before you travel helps you travel more comfortably.
Instead of stressing about every euro, set a reasonable budget that takes into account high prices, add in some wiggle room, and then go and enjoy Europe.
But this post isn’t about budgeting, it’s about how to handle your money while traveling in Europe.
I want to acknowledge up front that European travel is no longer a budget activity, particularly if you, like me, opt to stay in comfortable places, visit world-class museums, go to concerts, take the occasional small- group tour and private transfers, and enjoy the occasional dining splurge.
Table of Contents
Cards vs Cash in Europe
How much cash do you need in Europe? The answer is: not as much as you once did. Credit cards and tap systems are everywhere in Europe.
In many countries, you can use your card for just about everything, from buying a coffee in a sidewalk café to settling your hotel bill.
When I traveled in Denmark and Iceland, I barely saw any cash. In fact, in Iceland I never once used cash during the entire ten-day trip. I can’t even tell you what Icelandic króna look like.
When traveling outside Scandinavia, you’re wise to always have a few hundred euros available to pay for taxis, food in markets, and souvenirs from small shops.
I suggest withdrawing €300 from an ATM (see below) every two weeks or so and then using your credit card for most purchases.
Tip: Notify your bank and credit card companies before you leave, particularly if you don’t travel often. This advice is less relevant than it used to be when banks sometimes flagged foreign transactions as fraud and froze your card, but better safe than sorry. The last time I notified my bank, they told me I didn’t have to do that anymore but check with your own bank to be sure.
What Cards to Take
Take at least two credit cards (more on that below) and your bank’s debit card. Use credit cards to pay for most things and your debit card to get cash from ATMs.
You want to avoid using a credit card to get cash because most charge interest from the moment you receive the cash.
Choosing a Credit Card
Take Visa and/or Mastercard as your primary credit cards. In Europe, American Express is not universally accepted.
Take At Least Two Cards
Always travel with at least two credit cards but don’t carry both in the same place. Put one in your secure wallet (I pin a small pouch to the inside of my purse) and the other in a place securely fixed to your luggage.
If one card gets lost, stolen, or flagged, you’ll always have backup.
Foreign Transaction Fees
Choose a credit card that has no foreign transaction fees. Some standard credit cards charge 2-3% on every foreign purchase, which adds up fast on a long trip. Find cards that waive this fee entirely.
PIN Requirements
Some European payment terminals such as those at gas stations, parking lots, and train ticket machines require a PIN.
Before you leave home (don’t wait until you get to Europe), make sure you’ve set up a PIN if you don’t currently use one. Keep it under six digits and use numbers that mean something to you but will not be easy to guess.
Avoid using variations of your birthday or the birthday of anyone in your immediate family, your address, social insurance/security number, or any other personal information.
Travel Reward Cards
I do like getting travel rewards (who doesn’t?) and so I choose a card that offers good points return.
When you’re shelling out about €400 a day for accommodation, food, and tickets (and that’s not an unreasonable budget for two people in Europe), you’ll rack up the travel points quickly.
Have Sufficient Funds
You don’t want to be paying for your hotel only to discover that you’ve reached your credit limit. That’s both embarrassing and potentially serious. Before you leave, secure the highest credit limit you can.
Emergencies happen. Your flight may be canceled unexpectedly, you may get into a car accident, or encounter a medical emergency that could keep you in Europe far longer than you expect.
Insurance doesn’t pay out immediately so you need to be prepared to cover unexpected costs. Contact your bank to raise your limit as high as possible.
You don’t have to use it; you just need to have it.
ATM Strategy
How much should you withdraw at an ATM? The answer is: as much as you comfortably want to carry. For me, this is around €300.
A withdrawal of €300 lasts me about two weeks in Europe because I only use it in markets, for small tips, for some souvenirs, and to buy coffees and gelatos.
You’re better off withdrawing larger amounts less frequently because each withdrawal incurs the same flat fee service charge.
So, if you withdraw €100 ten times and the fee is €5 per transaction, you’ll pay €50. If you withdraw €300 three times, you’ll pay €15.
That’s a significant savings.
Use Bank ATMs
Avoid using standalone ATMs located in convenience stores, airports, and tourist spots. You’ll pay much higher fees and may be the victim of card skimming.
Look for ATMs that are attached to real banks.
Security
I avoid using ATMs outside bank buildings when I’m traveling solo and instead look for ATMs within the foyer of a bank. When I travel with Gregg, he “stands guard” while I withdraw the money.
Keep your wits about you. If someone is hovering too close, move on.
I always feel a bit nervous after withdrawing cash but thankfully have never experienced any problems.
Choose Local Currency
Always (and I mean always) choose to be charged in the local currency when withdrawing money from an ATM. The machine’s conversion rate will invariably be worse than your bank’s rate.
Paying with Credit Cards: Avoiding the DCC Trap
There’s this thing called the DCC (Dynamic Currency Conversion) trap; what it means is that you’ll be asked when you pay for something if you want to be charged in your own currency or the local currency.
The question sounds like it’s doing you a favor by letting you pay in your own currency. It’s not a favor; it’s a money grab.
Just as you do at ATMs, always choose to be charged in the local currency. You’ll get a much better exchange rate.
When you choose your home currency, the merchant or their payment processor handles the conversion at a rate that benefits them, not you. The markup is typically 3-7% above the actual exchange rate, and sometimes even more.
Tipping
In most of continental Europe, tipping is appreciated but not expected. To show appreciation, round up to the nearest euro or leave a few euros in cash even if you pay by credit card.
In the UK, leaving ten percent is customary if service is not already included in the bill, which it sometimes is.
Always check your bill before tipping because many European restaurants add a service charge automatically.
For taxis, round up to the nearest euro. For hotel housekeeping, a euro or two per day left on the pillow is appreciated but not standard practice everywhere.
For a full breakdown of tipping customs by country and more advice on eating well without overspending in Europe, read my guide: How to Eat Well in Europe: Dining Tips and Smart Splurges.
Budgeting and Currency Apps
Following is a description of some of the most useful apps for handling your money while traveling in Europe.
Wise
Formerly known as TransferWise, the Wise app is one of the most useful for European travelers. I used it to pay for a writers’ retreat in Tuscany last year, and it worked well.
Wise provides the real mid-market exchange rate with a small transparent fee that is almost always better than the bank’s rate.
Use Wise to send money to individuals who don’t take credit cards — for example, to pay for a homestay or retreat.
You can also get a Wise card that lets you spend directly in local currencies at excellent rates. Set up your account before you leave home.
Check the Wise website for details.
Revolut
Similar to Wise, Revolut is popular with European travelers. It offers a multi-currency account, real exchange rates, and a card you can use across Europe. The free tier has monthly limits on fee-free currency exchange.
Compare what they offer to Wise to see which best suits your needs.
Google Maps and Currency
Google now shows live exchange rates directly in search results. Type “USD to EUR” or “CAD to EUR” and you’ll get the current mid-market rate.
XE Currency
I usually use XE Currency to check exchange rates. It’s simple, accurate, and works offline once loaded.
Your Bank’s App
Download your bank’s app before you leave home. That way, you can monitor transactions in real time and check for unauthorized charges. You can also adjust settings such as travel notifications and daily limits without needing to make a phone call and wait on hold for five hours.
Expense Tracking Apps
I use Trail Wallet to help me keep track of my travel expenses.
You may be less inclined to buy yet another gelato when tracking it means you’ve gone over the daily limit you’ve set for yourself.
I find spending apps are most useful for helping me stay within a budget. The trick is to set a realistic budget so you’re not constantly depressed.
FAQs About Money in Europe
Less than you used to, but yes. In Scandinavia and Iceland you can travel almost entirely cashless, but outside northern Europe it’s wise to carry €200 to €300 for markets, small restaurants, taxis, and anywhere that doesn’t take cards. Withdraw from bank ATMs in larger amounts less frequently to minimize transaction fees.
Choose a Visa or Mastercard with no foreign transaction fees. American Express is not universally accepted in Europe, particularly at smaller restaurants, markets, and rural accommodation. Always travel with at least two cards from different networks and keep them in separate places.
Dynamic Currency Conversion is when a payment terminal or ATM offers to charge you in your home currency rather than local currency. It sounds helpful but the conversion rate benefits the merchant, not you, typically by 3-7% above the real rate. Always choose to pay in local currency, every time, without exception.
Use ATMs. Currency exchange bureaus charge high fees and offer poor rates. Use ATMs attached to real banks rather than standalone machines in tourist areas, airports, or convenience stores, which charge higher fees and carry a higher risk of card skimming.
Withdraw larger amounts less frequently since most banks charge a flat fee per transaction regardless of the amount. Check whether your home bank has international partner banks in Europe that offer reduced or waived ATM fees. Some accounts, like those offered by Wise or Revolut, have fee-free ATM withdrawal allowances.
Tipping customs vary by country. In most of continental Europe, rounding up or leaving a few coins is standard. In the UK, ten percent is customary if service is not already included. Always check your bill since many restaurants add a service charge automatically. For a full breakdown, read my dining guide: How to Eat Well in Europe.
Wise and Revolut are the most useful for real exchange rates and low fees. XE Currency is reliable for checking rates on the go. Your bank’s app is worth downloading before you leave for real-time transaction monitoring. Trail Wallet is useful for tracking daily spending against a budget.
A realistic budget for two people traveling mid-range is €200 to €300 per day covering accommodation, food, sightseeing, and local transportation, not including flights. For a full cost breakdown, see Step 1 of my European trip planning guide.
The Bottom Line About Money in Europe
Take two credit cards and a debit card, withdraw cash infrequently, always pay in the local currency, and enjoy yourself.
And finally, adjust your expectations and set a realistic budget. If you’re thinking fondly of your backpacking days when youth hostels cost about $2 a night (ah, those were the days), give your head a shake.
While you can travel more cheaply than I do, cheap is a relative term. You can’t realistically travel in western Europe for under about €200 a day for accommodation (and it would be very spare), food, transportation, and entrance fees. As of this writing, the Louvre alone charges €32 for non-European visitors.
For a full breakdown of what European travel costs, including accommodation, food, sightseeing, and transportation, see Step 1 of my European trip planning guide: How to Plan a European Trip: 9 Easy Steps for a Perfect Itinerary.
Keep Traveling Smart with Artsy Traveler
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