Spain is still thought of as a budget destination although in general, prices have increased considerably over the last ten years, and if you plan to spend most of your time in the major cities your budget will increase considerably. Prices do vary quite considerably around Spain and depend greatly on the location. For example a café con leche ( normal white coffee ) in one of the chic café bars in the Puerto Banus area of Marbella may cost around three Euros as apposed to around one Euro in a normal café bar located in a typical Spanish village away from the main tourist areas. In many areas, even around the holiday hotspots you can still eat a nicely prepared two course menu with a drink for around 8.00 Euros which is still great value by any standards. So if you are on a tight budget it is still possible to make you hard earned holiday expenses go further than you think. If you are prepared to buy your own picnic lunch, stay in inexpensive hotels and hostels , and stick to local restaurants and bars frequented by the locals, you could get by on around 30 Euros a day. If you intend to upgrade your accommodation, experience the city nightlife and eat fancier meals, then you'll need more like 75 Euros a day. 100 Euros a day and upwards you'll be limited only by your energy reserves. Plan to stay in four- and five-star hotels or Spain's magnificent Paradors , then expect to pay around 250 Euros upwards per day.

If your into trying lots of the local dishes you will be spoilt for choice as and can easily end wandering from one bar to the next sampling tapas without getting round to a real sit-down meal , this is certainly tastier though may not be the cheaper option in may cases. For around 30 Euros and you can certainly enjoy a good selection of quality tapas and wash it down with some quality Spanish beers and a choice of some world renowned wines produced in Spain.

Long-distance transport has improved greatly over the past 10 years and in general is excellent value for money. For example the normal adult fare to travel from Malaga to Madrid, one way ( rates up to date 2012 ) which is a a trip of over 550 Kms would cost some 20 Euros by coach, 35 Euros by Train ( around 65 Euros via the AVE high speed service ) and around 55 to 100 Euros by plane booking through airlines such as Iberia, Vueling , Ryanair, Air Berlin and Hellit.

As you would expect prices for dining and drinking out will be affected by the location along with the time year are travelling. One thing to look out for on prices generally is the addition of sales tax - IVA (usually pronounced "iba") - which may come as an unexpected extra (currently 10% percent for hotels and restaurants, sixteen percent for other goods and services) when you pay the bill for food or accommodation, especially in more expensive establishments.

Spain is one of twelve European Union countries which have changed over to a single currency, the Euro . Euro notes and coins were issued on January 1, 2002, with pesetas having remained in place for cash transactions, at a fixed rate of 166.386 pesetas to one euro, until they were scrapped entirely at the end of February, 2002. You can exchange your pesetas in banks until June 30 2002, after which date they may only be exchanged at the Banco de España (which has branches in all provincial capitals) for a further limited period. All prices in this guide are given in Euros. There has been some rounding off or, more precisely, up of prices in the first few months after the introduction of the euro. Notes will be issued in denominations of 5, 10, 20, 50, 100, 200 and 500 euros, and coins in denominations of 1, 2, 5, 10, 20 and 50 cents and 1 and 2 euro.

You can take into Spain as much money as you want (in any form), although amounts over 6000 Euros must be declared, and you may only take amounts over 6000 out if you can prove that you brought more with you in the first place. Not, perhaps, a major holiday worry.

How should I exchange money if I'm planning a vacation in another country?

A trip to Barcelona, Madrid or Malaga is never a dull experience. Spending time in any or all of these cities is the trip of a lifetime for most people. Planning a trip to a European country is a little easier these days thanks to the Euro. You no longer have to worry about how many Lire, Francs, Pesetas or Marks it takes to pay for hotels, meals and other travel expenses. The Euro is accepted in the 16 countries in the European Union, so exchanging your money to Euros eliminates the need to continually change currency as you leave one country and arrive in another. In fact waiting until the last minute to exchange currency is the kiss of death for any travel budget; you never know how much each exchange is going to cost you.

Where should I exchange my currency?

Most people realize that the currency market is constantly fluctuating but still they insist on exchanging money in arrival airports at whatever rate is posted. Deep pockets are more important than a budget if that's your plan, but most people go to a bank before the trip and exchange money. Banks add a fee for every exchange and they may only post a rate in the morning and one in the afternoon, which means you may not get a real time rate. Credit card companies love to exchange money for you. They add a profit to the exchange rate and they add a surcharge to every travel purchase, so you don't know how much your trip costs until you get the statement which means your travel budget is a waste of time. The best way to exchange currency is through a reliable currency trader who watches the market hourly. A professional will give you a real time exchange rate and can help you average your exchanges at the right time while you're planning the trip. When you average exchanges you know how much the trip will cost before you reach your destination, not after.

Other travel tips

It's always a good idea to carry cash in a money belt or a hidden pocket that's secure and out of sight. Purses and wallets should only have enough cash for small purchases. You should always know your host country's laws concerning cash limits. If you're over the limit it could be confiscated.

travellers' cheques and credit cards

A safe and easy way to carry your funds is in travellers' cheques , though most Visa, Mastercard (Access) or British automatic bank cards, and US cards in the Cirrus or Plus systems, can be used for withdrawing cash from ATMs in Spain: check with your bank to find out about these reciprocal arrangements - the system is highly sophisticated and can usually give instructions in a variety of languages. To cancel lost or stolen credit cards, call the following numbers:

American Express tel 915 720 303
Diners Club tel 915 474 000
Mastercard tel 900 971 231
Visa tel 900 974 445

All leading credit cards are recognized, too, and are useful for car rental, hotels, restaurants and just about every other item you will be purchasing during you stay in Spain.

Visa travel Money (www.visa.com)

This is a disposable debit card prepaid with dedicated travel funds which you can access from over 457,000 Visa ATMs in 120 countries with a PIN that you select yourself. When your funds are depleted, you simply throw the card away. Since you can buy up to nine cards to access the same funds - useful for couples/families travelling together - it's recommended that you buy at least one extra as a back up in case your first is lost or stolen. There is a 24-hour visa global customer assistance services centre which you can call from any of the 120 countries toll-free.

Changing money

Spanish Bancos (banks) and Cajas de Ahorros (savings banks) have branches in all but the smallest villages. Some fo the biggest bank operaitn in Spain currently include Barclays, Solbank, Sabadell, Banesto, Bankinter and Unicaja .
ATM cash machines ( cajeros automaticos ) are now widespread throughout the country in cities, towns and even many villages and you only need a valid card with PIN number to use them; this is probably the most convenient way to get cash when you need it, although you would be wise not to rely on this method exclusively just in case your card gets swallowed up or, indeed, lost or stolen.

Money changing machines now feature also in many larger cities and feeding in pounds or dollars will give you instant cash. Banking hours are generally Mon-Fri 8.30am-2pm, with some city branches open Sat 8.30am-1pm (except from June to September when all banks close on Saturday), although times can vary from bank to bank. Outside these times, it's usually possible to change cash at larger hotels (generally bad rates, low commission) or with travel agents, who may initially grumble but will eventually give a rate with the commission built in - useful for small amounts in a hurry. In tourist areas you'll also find specialist Casas de Cambio , with more convenient hours (though rates vary), and most branches of El Corte Inglés, a major department store found throughout Spain, have efficient exchange facilities open throughout store hours, offering competitive rates and generally a much lower commission than the banks (though they're worse for cash).

Wiring money
It's also possible to have money wired directly from a bank in your home country to a bank in Spain, although this is somewhat less reliable because it involves two separate institutions. If you go this route, your home bank will need the address of the branch bank where you want to pick up the money and the address and telex number of the Madrid head office, which will act as the clearing house; money wired this way normally takes two working days to arrive.

Youth and student discounts

Various official and quasi-official youth/student ID cards soon pay for themselves in savings. Full-time students are eligible for the International Student ID Card (ISIC), which entitles the bearer to special air, rail and bus fares and discounts at museums, theatres and other attractions.

You have to be 26 or younger to qualify for the International Youth travel Card , All these cards are available in the UK from Usit Campus and STA; in the US from Council travel, STA, travel Cuts and, in Canada, Hostelling International; in Australia and New Zealand from STA or Campus travel.

Several other travel organizations and accommodation groups also sell their own cards, good for various discounts. A university photo ID might open some doors, but is not as easily recognizable as the ISIC card, although the latter is often not accepted as valid proof of age, for example in bars or clubs