Mexico is an increasingly popular destination for US travelers. Nearly 37 million Americans visited their southern neighbor in 2023 alone — up more than 3 million from 2022.
Mexico’s popularity is thanks to its many attractions and the fact it’s considered “budget-friendly.” Your money can go a long way in Mexico, with the exchange rate often above 1 US dollar (USD) to 15 Mexican pesos (MXN). This favorable exchange rate allows visitors to stretch their budgets further and enjoy more of what Mexico offers.
So, how much money should you bring to Mexico? Well, there’s no one-size-fits-all answer. It depends on your budget, how long you’re staying, the size of your group, and the activities you plan. This comprehensive guide will help you determine how much money you will need during your Mexican adventure.
Mexico money basics
Knowing the basics of money in Mexico before visiting can make for a more enjoyable stay. In the sections below, we’ll cover key topics like currency exchange, cash and credit card usage, and other tips for a hassle-free visit.
How much money can I bring into Mexico?
Mexico allows visitors to bring amounts under 10,000 USD (or the equivalent in other currencies) without needing to declare it. You must notify customs officials upon arrival if carrying $10,000 or more. Failure to do this may result in fines or confiscation of funds above the limit. Keeping a record of the source of your funds and the reason for bringing them into the country can help avoid complications.
Complying with Mexico’s customs regulations is essential for a smooth arrival and to prevent legal issues that could spoil your trip.
Do you need pesos in Mexico?
The US dollar is widely accepted in tourist areas and large cities across Mexico. However, you may need Mexican pesos for transactions in rural areas, local markets, and with smaller vendors. Therefore, carrying both US dollars and pesos during your visit to Mexico is a good idea.
ATMs are widespread across the country and are commonly used for currency exchange. Be aware that some ATMs charge fees for withdrawals, so it’s a good idea to check your bank or credit card issuer’s terms and conditions online beforehand.
When deciding how many US dollars to bring to Mexico, here are three key tips to help you manage your finances during your stay:
- Carry both dollars and pesos for flexibility
- Consider using ATMs for currency exchange
- Be aware of exchange rates ahead of currency transactions
Can I use a credit card in Mexico?
Yes, credit cards are widely accepted in Mexico, especially in tourist areas, upscale establishments, and large cities. Visa and Mastercard are the most commonly accepted credit card brands, followed by American Express and Discover. The widespread acceptance of credit cards can also inform your plans about how much cash to bring to Mexico.
While credit cards offer convenience, it’s also wise to carry cash to avoid transaction fees. A mix of payment methods makes sure you can buy goods from smaller businesses, street vendors, and in rural areas where credit cards might not be accepted.
It’s also a good idea to inform your bank of your travel plans to avoid fraud detection errors or other issues with your card.
To get the best exchange rate and avoid high fees, consider using a trusted currency exchange service or withdrawing pesos from an ATM using a debit card. Those are among the best ways to exchange currency. You can also use Western Union services in person at more than 100 currency exchange locations across Mexico.
Factors to consider when deciding how much money to bring to Mexico
When deciding how much money to bring to Mexico, there are a few key factors to consider:
- The duration of your stay
- The number of people in your party
- Your daily budget for expenses such as accommodation, food, transportation, and activities
1. The number of days you will be staying
Whether you’re planning a long vacation or a weekend getaway, the duration of your trip goes a long way toward dictating how much money you should bring to Mexico.
Setting a daily budget based on the length of your stay can help you enjoy your trip without worrying about finances. Remember to consider any additional expenses, such as souvenirs, tipping, and unexpected costs.
2. The number of people in your group
The number of travelers in your group determines the total cost of accommodation, dining, transportation, and other incidentals.
Accurately budget for everyone involved and enjoy your trip without worrying about finances. It’ll also help you determine how much cash to bring to Mexico.
3. Average daily budget
When traveling to Mexico (or anywhere else), set a realistic daily budget covering accommodations, meals, activities, and incidentals. This will help you monitor your expenses and avoid financial surprises. Consider dividing your budget into three tiers:
- A budget-friendly range of 30 to 60 USD per day can cover simple meals, local transportation, and low-cost activities.
- A midrange budget of 60 to 120 USD per day allows for more comfortable accommodations, moderately priced restaurants, and additional paid attractions.
- For a high-end or luxury experience, a daily budget of 120 USD or more might cover upscale accommodation, fine dining, and exclusive activities.
Setting a daily budget provides peace of mind while preparing for your trip. As mentioned above, don’t forget to also plan for extra expenses, such as gifts to bring back home, tips, or unexpected expenses.
What to know about exchange rates (USD to MXN)
Whatever budget you’re working with while in Mexico, it’s important to monitor the current exchange rate between the US dollar and the Mexican peso.
Exchange rates determine the value of one currency relative to another. They fluctuate continuously with inflation, changing economic conditions, and geopolitical events. Fluctuations in currency values can significantly impact your purchasing power and costs while in Mexico.
Monitoring the current exchange rate helps gauge the value of your currency in Mexico. That way, you can adjust your spending accordingly. Researching the current exchange rate can also help you accurately estimate your expenses and find the right time to exchange currency.
Reminder: Beware of hidden fees and unfavorable rates when exchanging currency. Venues like airports, hotels, or tourist areas often offer less attractive rates than banks, credit unions, or specialized money transfer services like Western Union.
You can also use the Western Union currency converter to track the USD-to-MXN exchange rate.
How to save money when traveling to Mexico
There are many ways to save money while enjoying an unforgettable trip to Mexico. Here are some tips to help stretch your travel budget:
- Research and book accommodations in advance to find the best deals and discounts.
- Opt for local eateries and street vendors for budget-friendly, authentic food.
- Use public transportation or shared rides instead of taxis for low-cost travel within cities.
- Monitor and compare currency exchange rates to ensure you get the best rates and avoid hidden fees.
- Withdraw pesos from ATMs to avoid high fees and unfavorable rates, especially at airports or in touristy areas.
- Visit free or discounted attractions such as museums, parks, and cultural events to explore Mexico without breaking the bank.
Western Union: Your travel partner
Don’t forget that Western Union offers convenient and reliable money transfer services to help you access local currency and manage your finances while on the go. Setting up an account is easy. Sending cross-border payments online or from the Western Union® app is even easier.
And don’t forget to take advantage of our currency converter to track the USD-to-MXN exchange rate and set a budget for your Mexico adventure.
FAQs
What is a reasonable daily budget for traveling in Mexico?
For budget-conscious travelers sticking to simple meals, local transportation, and low-cost activities, a range of 30 to 60 USD per day should be enough.
Those seeking a more comfortable midrange experience with better accommodations, restaurant dining, and paid attractions may want to budget 60 to 120 USD daily.
A higher-end trip featuring upscale hotels, fine dining, and exclusive tours or activities might call for a daily budget of 120 USD or more.
Should I bring more cash or rely on credit cards when traveling to Mexico?
When traveling to Mexico, it’s wise to carry a mix of cash and credit cards. Having cash on hand allows you to make purchases from smaller, cash-only businesses and street vendors. Cash also comes in handy in rural areas where credit cards may not be accepted.
What is the best way to exchange money in Mexico?
The best way to exchange money in Mexico is typically at a bank or casa de cambio (currency exchange office) or by withdrawing pesos from an ATM using a debit card with low international fees. These tend to offer better exchange rates compared to airports or hotels. Either way, avoid exchanging money on the street as you may receive poor rates or, worse, counterfeit bills.
