Currency

The euro (€), the new single European currency, became the official currency of Spain and 11 other participating countries on January 1, 1999. However, the euro didn't go into general circulation until early in 2002. The old currency, the Spanish peseta, disappeared into history on March 1, 2002, replaced by the euro, whose official abbreviation is "EUR." Exchange rates of participating countries are locked into a common currency fluctuating against the dollar. For more details on the euro, check out www.europa.eu.int/euro.

Since the introduction of the euro and the country's economic coming-of-age, Spain is regrettably no longer a budget destination. However, compared to other major European cities, it does offer excellent value for money. Barcelona is often quoted as the most expensive city in Spain (in studies based on everything from the cost of renting an apartment to the price of a loaf of bread), but compared to London or Paris, it can be a bargain. Of course, once you move beyond Barcelona and into the rural areas you will find that the price of things (particularly hotels and restaurants) drops noticeably.

Much noise was made about the "rounding off" of prices upon the introduction of the Euro, not just in Spain, but throughout Europe. Basically this meant that, if the normal price of a coffee in pesetas came out at say 81 eurocents, after January 1st 2002 it was hiked up to an "even" euro. This practice was especially widespread in the hospitality sector and anyone who has visited the country in the days of the peseta will notice a considerable difference in prices in bars and restaurants. Unfortunately for U.S. visitors, in the last couple of years, the euro has gone from basically a one-to-one exchange rate with the dollar to a much stronger position. If you're from an expensive city in the U.S., you will probably find a lot of the prices comparable, but if you're not used to large-city prices, you could have a bit of sticker shock.

The old adage "You get what you pay for" is as true in Barcelona as any other European city, up to a point. Reflecting a modern, cosmopolitan city that has to cater all budgets, you can choose to go either up- or downmarket in your choice of dining and accommodations. Often you will find that the most memorable experience is not wholly dependent on the price tag. Staying away from the tourist traps and seeking out family-run restaurants will generally make you more inclined to hand over your credit card with a smile when the check comes. In a climate of stiff competition (especially from the holiday apartment sector) hotels are usually clean and comfortable. Trains are very reasonably priced, fast and on time, and most service personnel treat you with respect.

In Spain, many prices for children -- generally defined as ages 6 to 17 -- are lower than for adults. Fees for children under 6 are generally waived.

Regarding the Euro

Since the euro's inception, the U.S. dollar and the euro have traded almost on par (i.e., $1 equals approximately 1€); therefore, all prices in this book are given in euros. But as this book went to press, 1€ was worth approximately $1.15 and gaining, so your dollars might not go as far as you'd expect. (I give euro/dollar conversions at this rate). For up-to-the minute exchange rates between the euro and the dollar, check the currency converter website www.xe.com/ucc.

It's a good idea to exchange at least some money -- just enough to cover airport incidentals and transportation to your hotel -- before you leave home, so you can avoid lines at airport ATMs (automated teller machines). You can exchange money at your local American Express or Thomas Cook office or your bank. If you're far away from a bank with currency-exchange services, American Express offers traveler's checks and foreign currency, though with a $15 order fee and additional shipping costs, at www.americanexpress.com or 800/807-6233.

ATMs

The easiest and best way to get cash away from home is from an ATM (automated teller machine). The Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the globe (and are plentiful in Spain); look at the back of your bankcard to see which network you're on. ATMs are plentiful in Barcelona and even the tiniest village will have at least at least a few of them. Be sure you know your personal identification number (PIN) before you leave home and find out your daily withdrawal limit before you depart. Also keep in mind that most banks impose a fee every time a card is used at a different bank's ATM, and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $1.50). On top of this, the bank from which you withdraw cash may charge its own fee (although this is often stated at the time of withdrawal). To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank. Most ATMs in Barcelona are multilingual; displaying instructions in the language of your choice. Some are located on street level, while some are located inside a "chamber" (guarded by CCTV) that is accessed with your bankcard. Note that these type of ATMs in central Barcelona are often closed after 9pm, leaving only the street level ones at your disposal. If you feel nervous about using these at night, try to withdraw money during working hours when the bank is open and staff is on hand for any possible hitches. Also be warned that theft and scams at ATM points are on the rise.

You can also get cash advances on your credit card at an ATM. Keep in mind that credit card companies try to protect themselves from theft by limiting the funds someone can withdraw outside their home country, so call your credit card company before you leave home.

• Small Change -- When you change money, ask for some small bills or loose change. Petty cash will come in handy for tipping and public transportation. Consider keeping the change separate from your larger bills, so that it's readily accessible and you'll be less of a target for theft.

Traveler's Checks

Traveler's checks are something of an anachronism from the days before the ATM made cash accessible at any time. Traveler's checks used to be the only sound alternative to traveling with dangerously large amounts of cash. They were as reliable as currency, but, unlike cash, could be replaced if lost or stolen.

These days, traveler's checks are less necessary because most cities (including Barcelona) have 24-hour ATMs that allow you to withdraw small amounts of cash as needed. A disadvantage to this convenience is that you will likely be charged an ATM withdrawal fee if the bank is not your own, so if you're withdrawing money every day, you might be better off with traveler's checks -- provided that you don't mind showing ID every time you want to cash one.

You can get traveler's checks at almost any bank. American Express offers denominations of $20, $50, $100, $500, and (for cardholders only) $1,000. You'll pay a service charge ranging from 1% to 4%. You can also get American Express traveler's checks over the phone by calling tel. 800/221-7282; Amex gold and platinum cardholders who use this number are exempt from the 1% fee.

Visa offers traveler's checks at Citibank locations nationwide, as well as at several other banks. The service charge ranges between 1.5% and 2%; checks come in denominations of $20, $50, $100, $500, and $1,000. Call tel. 800/732-1322 for information. AAA members can obtain checks without a fee at most AAA offices. MasterCard also offers traveler's checks. Call tel. 800/223-9920 for a location near you.

Foreign currency traveler's checks are useful if you're traveling to one country, or to the euro zone; they're accepted at locations such as bed & breakfasts where dollar checks may not be, and they minimize the amount of math you have to do at your destination. American Express offers checks in Australian dollars, Canadian dollars, British pounds, euros, and Japanese yen. Visa checks come in Australian, Canadian, British, and euro versions; MasterCard offers those four plus yen and South African rands.

If you choose to carry traveler's checks, be sure to keep a record of their serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

Credit Cards

Credit cards are a safe way to carry money, they provide a convenient record of all your expenses, and they generally offer good exchange rates. You can also withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you've forgotten yours, or didn't even know you had one, call the number on the back of your credit card and ask the bank to send it to you. It usually takes 5 to 7 business days, though some banks will provide the number over the phone if you tell them your mother's maiden name or some other personal information. Your credit card company will likely charge a commission (1%-2%) on every foreign purchase you make, but don't sweat this small stuff; for most purchases, you'll still get the best deal with credit cards when you factor in things like ATM fees and higher traveler's check exchange rates.

In Spain, American Express, Diners Club, MasterCard, and Visa are commonly accepted, with the latter two cards predominating. Also note that in Spain you are required to show some form of photo ID (driver's license, passport, and so on) when making a purchase with a credit card, although for some reason this is waived in restaurants.