MONEY, TIPPING and MORE

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Travel to the United Kingdom and France can be a bit confusing money wise, since although they are neighbors, the money they use is different.


Great Britain still uses the British pound sterling.

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 The sign for the pound is £ penny: p

GBP = Great British Pound 

The singular of pence is "penny". The symbol for the penny is "p"; so an amount such as 50p is often pronounced "fifty pee" rather than "fifty pence". Nicknames: Pound Sterling, Sterling, Quid, Nicker

Like US currency, the British have both coins and banknotes.

Current coins are:

1 penny, 2 pence, 5 pence, 10 pence, 20 pence, 50 pence, 1 pound, and 2 pounds.

Current bank notes are:

the 5 pound note, the 10 pound note, the 20 pound note and the 50 pound note.

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When we head to France, we'll be using the Euro.

The euro currency sign is € 

The euro is the sole currency of 19 EU member states: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. These countries constitute the "eurozone".The coins are issued in €2, €1, 50c, 20c, 10c, 5c, 2c, and 1c denominations.

The design for the euro banknotes has common designs on both sides. Notes are issued in €500, €200,€100, €50, €20, €10, €5.

As of 3/24/15, the Exchange Rates were:

1 US Dollar = 0.67 British Pound Sterling

(or 1 British Pound Sterling = 1.49 US Dollar)

and

1 US Dollar = 0.91 Euro

(or 1 Euro = 1.09 US Dollar)

***So figuring out the conversion quickly - you can constantly consult your Currency Converter app, OR just roughly know the exchange rates.  So if the rate in France is 1 euro to 1.09 dollars - it's pretty much a wash.  But in the UK where its 1 pound to $1.49 - you just need to multiply.  So if you're buying some fish and chips for 5 euros, then it costs 5 x $~1.50, or about $7.50.  10 pounds is about $15, and 100 pounds = ~$1,500 (100 x 1.50). 

MONEY IN RESTAURANTS:

Tipping is not always expected in the UK in the way it is in the United States. All staff in the UK, must by law, be paid at least the National Minimum Wage whether they receive tips or not. Unlike in the US, the need for tipping is much less.

As a general rule, it is very rarely expected that one tips in the UK, unless the service is outstanding, but it is polite to forgo change, as a convenience and to be polite. And the restaurants often add 12.5% as a service charge.  So if you are going to tip 10-15% for great service, make sure you check your bill so you don't tip twice.

Tipping in France

(from The Paris Insider)

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By law, every check includes the service for the employees (usually 15%) which is different than a gratuity.The 15 percent service charge will be itemized on your check, on top of the VAT tax (French sales tax). The words service compris (tip included) indicate that the tip has already been included in the total. And if you don’t see them, don't worry, the service is included by law.

Only if you think that the experience was worth leaving something extra do you leave a tip/gratuity for your garçon (waiter).   But...don’t feel obligated to overtip. In all but the fanciest of restaurants, leaving more than 5-10% is generally not done.

In France there is not a place on the bottom near the meal total where you write in a gratuity. It can either be left in cash discreetly on the table, or just ask the server to add it to the total charged on the card.
Something to keep in mind however, is that the level of “service” in France depends entirely upon which type of place you are eating.

A casual bistro is not set up like a restaurant, and there are usually two servers responsible for the entire room. Their job is to make sure you have utensils, bread, glasses and take and deliver the order. That’s it. They are not going to be stopping to ask if you need anything, it is your job to flag them down discreetly when you need something. Leaving euro coins, cash bills or adding a gratuity to the bank card is acceptable.

In a restaurant, there are usually several people responsible for your table, a server, a sommelier, etc. and they should be anticipating your needs such as glasses being refilled, answering questions about wines, etc. Leaving cash bills or adding gratuity to the bank card is acceptable.

TAXIS

UK

It is polite to tip 10-15% of the taxi fare for black cabs and licensed minicabs in London. 

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However, most people simply round up the fare to the nearest £1 and tell the driver to "keep the change". If you've had a longer journey and the driver has assisted you with luggage, you may wish to tip a little more, up to £5.

France

Like restaurants, tipping in a taxi isn’t necessary, but you can give a little extra, roughly an extra 1-2€ in Paris no matter what the fare. If coming from the airport and the driver’s helped you with luggage and the like, 5% is fine to give him or her.

Conversely, if they take you on a tour of Paris, ie: the longest route possible, don’t give them anything unless they were doing it to avoid traffic or a demonstration blocking the streets.

HAVING CASH ON HAND

If you bank with Bank of America, you can use Barclays ATMs in London with no fees attached.  

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I'll take a bit of cash over with me ~$100 (and will get pounds from my bank in the US), so that I don't have to deal with lines when I get off the plane in London, but you don't want to be walking around with a bunch of cash.  You usually get the best rates at ATMs or Post Offices when in London.


Just realize that you ARE going lose money each time you change it.  At a bank, you lose ~ 8 % when you change dollars to euros. When you use currency exchange booths such as Travelex at the airport, you lose ~ 15 percent. If you must change cash in Europe, the postal banks inside post offices usually have the best rate.

Also, I only use my debit card for getting cash. I use credit cards for larger purchases and I use cash for purchases in small, independently owned shops like convenience stores.

Also, use the local money - if you find a place that accepts US Dollars - beware. Your purchase is costing you ~ 20% more because of that merchant's exchange rate.

***You should definitely let your credit card companies and bank know you will be traveling overseas so they don't block your cards.

Also - change back to dollars at the end of your trip. 

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If you have pounds or euros left at the end of your trip, change it into dollars at the airport or simply spend it at the airport before you fly home. You might get a few more dollars from your US bank for that last few foreign bills, but it’s very nice to simply fly home with nothing but dollars in your pocket.