A holiday in the USA is rarely cheap, but careful planning around money can stretch your budget further than most first-time visitors expect. Between currency exchange, tipping culture, sales tax, and unfamiliar payment habits, there's a lot to think about before you fly.
Here's a practical guide to handling money on a trip to the States.
How Much Cash Should You Take?
Cash is less essential in the US than it used to be. Card payments are accepted almost everywhere, including small cafes, taxis, and even some street vendors. That said, having physical dollars on hand makes life easier in a few situations:
- Tipping hotel staff, drivers, and tour guides
- Smaller diners or bars in less touristy areas
- National parks and rural areas where card readers can be patchy
- Emergency situations where cards aren't an option
For most two-week trips, somewhere between $200 and $400 in cash is a reasonable starting point, with cards covering the bulk of your spending. Adjust based on whether you're staying in major cities (less cash needed) or doing a road trip through smaller towns (more cash useful).
Where to Get Your Dollars
Getting your dollars before you leave the UK is almost always cheaper than exchanging at a US airport or hotel. Specialist online providers offer better rates than high street banks, and ordering ahead means you arrive ready to spend rather than queueing at an exchange counter when you should be heading to your hotel.
If you're looking to Buy US Dollars, compare rates a week or two before your trip rather than the day you fly. Rates fluctuate constantly, and you'll generally get a better deal ordering online than walking into a Post Office or bureau de change. Most online providers offer free delivery above a certain threshold and have collection points if you'd rather pick up in person.
Understand Tipping Before You Go
Tipping in the USA isn't optional in the way it is in the UK. Service staff in restaurants, bars, and hotels often rely on tips because their base wages are lower. Failing to tip is treated as rude, even if the service was average.
Standard expectations:
- Restaurants: 18 to 20 percent of the pre-tax bill
- Bars: $1 to $2 per drink, or 15 to 20 percent of the tab
- Taxis and rideshares: 15 to 20 percent
- Hotel housekeeping: $2 to $5 per night
- Bellhops: $1 to $2 per bag
Build tipping into your daily budget. A meal listed at $40 will realistically cost closer to $50 once tax and tip are added.
Sales Tax Catches People Out
Prices on shelves and menus in the USA usually exclude sales tax. The tax is added at the till and varies by state and city, ranging from zero in places like Oregon to over 9 percent in parts of California and Tennessee.
This matters for two reasons. First, your shopping bill will be higher than expected if you assume the sticker price is final. Second, if you're comparing prices online before a trip, factor in the local tax rate to get a realistic sense of cost.
Use Cards Wisely
Most UK debit and credit cards work fine in the USA, but foreign transaction fees can add 2 to 3 percent to every purchase. Before you travel:
- Check whether your card charges foreign transaction fees
- Consider a fee-free travel card for the trip
- Tell your bank you'll be abroad to avoid blocked transactions
- Carry a backup card stored separately from your main wallet
When paying, always choose to be charged in dollars rather than pounds. The pound option (dynamic currency conversion) uses a worse exchange rate set by the merchant, not your bank.
ATMs and Cash Withdrawals
If you need more cash while you're there, withdraw from major bank ATMs rather than the standalone machines in convenience stores or bars. Bank ATMs charge lower fees and offer better rates. Avoid the "convert to pounds" option at the machine and let your own bank handle the conversion.
Budgeting Realistically
Beyond flights and hotels, daily costs in the USA tend to surprise UK visitors. A coffee and pastry can easily run to $10 once tax and tip are included. A casual lunch for two in a city often hits $50. Even cheap chain restaurants creep up quickly once drinks and tips are factored in.
Plan for around $80 to $150 per person per day for food, local transport, and incidentals in a major city, less in smaller towns and rural areas. Factor in a buffer for activities, attractions, and the inevitable unplanned spending.
Final Thoughts
The USA rewards travellers who plan ahead. Sort your dollars before you fly, understand the tipping culture, watch for sales tax surprises, and pick the right card for fee-free spending. Get those basics right and you'll spend less time worrying about money and more time enjoying the trip.
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