Whether you’re visiting Mexico or planning to stay long term, one question always seems to pop up. How much cash should you take? Carrying folding money is definitely a smart idea when you’re in a foreign country since you never know how easily you will find ATMs. Plus, you may need to take a taxi unexpectedly or cover some unforeseen expenses out of pocket. On the other hand, you can easily carry too much cash and make yourself a target for thieves. Striking a balance and bringing that cash along can make all the difference. I will walk you through good ways to estimate what you need and how to distribute your money about your person to avoid problems.
How much cash should I bring to Mexico? You should bring a hundred dollars cash to exchange on arrival in Mexico. Unless you only deal in cash, leave the rest in the bank. Carrying a credit card with no conversion fees, or a card from a bank with a Mexican equivalent is an excellent way to avoid ATM fees. However, it would be best if you planned to leave most of your cash at home or in your hotel.
Exchanging Cash in Mexico
You may want to exchange your dollars for pesos before you arrive in Mexico. Finding a day when the currency exchange rate is especially favorable will make your money go further. If you decide to do this, then plan to take about a hundred USD for every day you will be there.
Unless you plan to live extravagantly, this should be more than enough for your expenses, souvenirs, and plenty of time out having fun. However, if you’re a digital nomad looking to work abroad, then you’ll find you don’t need anywhere near that much. Especially if you cook at home, you’ll probably spend less than half what you would in the US.
If you need to wait until you reach Mexico to make an exchange
, there are two ways to go about it. First, you can stop at a kiosk. Most touristed areas in Mexico have such establishments readily available near airports, bus stations, borders, and other heavily foreign-trafficked areas.
Alternatively, you can exchange money at a bank. By doing this, you can guarantee the up-to-date exchange rate for your cash, which can be a significant advantage.
What is the Best Currency to Carry in Mexico
When you are in Mexico, you will find that you can’t always spend USD. Some larger shops and hotels will allow you to pay in dollars, but most places, the peso is king, as well it should be. You will need to pay for your meals, transportation, and other expenses with pesos unless it’s expressly stated otherwise.
The peso is the official money of Mexico. Moreover, due to the exchange rates, you could end up shorting yourself if you try and pay in dollars. As for other forms of currency, they are even less likely to be accepted. Stick to local money.
How Much Cash Should You Carry
Carrying cash in a foreign country like Mexico might make you nervous. Undoubtedly, if you’re headed to a busy or touristy area, then there are bound to be a few pickpockets around. Although Mexico is overall much safer than its reputation here might indicate, you still need to use common sense.
When you travel, always carry a dummy wallet. Please leave it in your back pants pocket, easily accessible to thieves. This wallet should have a little money inside, but not much. More importantly, it would help if you did not put anything else vital inside.
Your credit cards, passport, driver’s license, and other essential information need to be safely stowed away. Keep these things in the bottom of a cross-body bag with a heavy-duty strap that cannot be easily cut. You may want to invest in a belt with hidden money pouches on the inside as well.
You should spend the money in your dummy wallet first, replace it with another small bill when you use the restroom. By not flashing around large sums of money, you make yourself a less desirable target for thieves.
Should You Tip in USD or Pesos
Always carry cash for tips. Unlike some countries, such as England, tipping is customary in Mexico. About ten percent is standard for servers at restaurants and delivery people. When you stay at a nice hotel or an all-inclusive resort, you should tip a little more, just as you should if the service is excellent.
It is alright to tip in US dollars when you are in Mexico. If you’re out of pesos after paying, waitstaff and others will appreciate the gratuity (propina) even if they have to exchange it themselves. Make sure you always show your appreciation to the people who make money from tips. Wages in Mexico are lower than the US, and especially in low-wage jobs, every tip makes a difference.
Bellhops and cleaning staff in your hotel rooms should get twenty-five to fifty pesos each time they assist you or clean up after you. If your luggage is unusually heavy, or you make a mess, tip more. Tipping a concierge if you ask for information is also customary. Typically fifty to a hundred and fifty pesos is the correct amount if they give good service.
Although it’s not something, everyone thinks of, tipping the maniobristas who park your car at a hotel is also customary. Moreover, being extra kind to these workers can often pay off if you need information or assistance, and you’ll find many of them speak English. I’ve always found these are the go-to-guys if you need to be in the know.
Surprisingly, it’s not always customary to tip cab drivers. If they help you with luggage, then about ten pesos per bag is standard, and other tips are always appreciated. However, a simple point A to point B trip with no baggage in town doesn’t require additional tipping.
Using Credit & Debit Cards
If you don’t have cash in Mexico, you can still use your credit or debit cards there. American Express, Mastercard, and Visa are all widely recognized and accepted south of the border. However, you will find that not all businesses take cards.
Additionally, it’s worth knowing that even when a business takes your card, there could be unexpected fees. Usually, these have nothing to do with the company you are buying from. Instead, they come from your bank. International transfer fees and other shopping and spending abroad fees can be an unwelcome surprise.
Luckily, not all banks or cards charge for these services. It’s best if you make sure to inquire in advance. If your bank has steep fees, you could consider looking into a prepaid visa card. Loading a limited amount on your card could help prevent overspending and unforeseen costs. Take the time to read the fine print if you do this to avoid any possible complications.
Smaller businesses typically deal in cash only. Likewise, you may not see a tip-line on a ticket at a restaurant when you eat out. Having paper money or coins is essential, but you can use your cards to get ahold of that vital cash quickly.
Like the US, ATMs are incredibly common in Mexico. Some banks have reciprocal agreements, and it will only take you a single phone call or a few minutes online before you leave the US to find out if your bank is one of these. Having such an agreement means your ATM fees may be waived if you use the right banks’ ATMs. Still, you should always check the details before you count on fee-free card use.
On the plus side, ATM fees tend to be relatively low in Mexico. You will often find that the rates are either one dollar or one percent of the transaction. As transaction fees go, that’s less than many US ATMs and can be well worth it to avoid other expenses.
I recommend calling your bank or sitting down with your banker if you plan to go abroad. They will be able to easily and quickly clear up any questions you may have about spending money on cards in Mexico. Additionally, they can help arrange for currency exchanges and provide you with information on other options like travelers’ checks.
Final Thoughts
You cannot spend the United States dollars in most places in Mexico. While it’s a good idea to carry some folding money, it needs to be in Pesos. If you plan to exchange money near the border, then bring some with you. Otherwise, it’s best to leave it in the bank.
If your bank has a Mexican equivalent, then you may be able to avoid ATM fees. However, it’s much easier to hide a card in a belt pouch or boot than it is to hide a lot of cash about your person. Instead of carrying, and thus risking, a lot of paper money, take only what you need and stop for more if necessary.
An occasional ATM fee is worth the trouble to avoid losing your money. You will find plenty of ATMs available wherever you go.