You don't need to bring any cash. You might want to get 100 Euro from an ATM at the airport when you arrive in Italy and hit ATMs as needed throughout you trip. Consider getting larger sums to avoid the (roughly) $2 ATM fee everytime you use an ATM.
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In Italy, cash is still preferred in most restaurants, cafes and other establishments, although credit and debit cards are becoming more widely used throughout Italy and are an increasingly convenient way to pay for things. Visa and Mastercard are widely accepted, although American Express is not.
Use credit cards for purchases and most meals. You'll get the best exchange rate. (This is assuming your cc balance is zero.) For two people I would budget about $2,000 for two weeks.
A mid-range budget traveler, such as myself, can expect to spend approximately $150 per day or $1,050 for one week of travel in Italy, excluding flights. Two mid-range budget travelers visiting Italy can expect to spend about $270 per day. I break down my Italy travel budget by category below.
In my opinion 500 euros is sufficient for 10 days and if you feel you need more, just use your debit card to get some more. Carrying lost of cash is never a good idea and especially in Italy and not all hotels have safes. Make sure your PIN for your card has no more then 4 digits.
Tipping at restaurants and cafés depends on the serviceWhen it comes to tipping at restaurants, Italians will tell you they only tip on truly exceptional service or when dining in the finest restaurants. Even then, they usually only tip an extra 10 to 15 percent, or often just the change left over from the bill.
Many Italian restaurants and shops prefer cash, making it essential that you have a little on hand as you travel. While it can be better value to buy the currency before you go (see our section on that below), you can also get currency once you arrive in the country.
Don't bring any more cash with you than you'd normally carry with you in your own country on a daily basis. Bear in mind the increased pickpocketing risk for a tourist in Rome. When you get to the airport, get one or two hundred euros out of one of the ATMs in the baggage hall just in case (they don't charge fees).
Using credit and debit cards in Italy is the easiest and cheapest way to get local currency. Make sure to notify your banks that you'll be traveling to Italy before you go. Be sure your PIN is both four digits long and numbers rather than letters.
-Bring some type of fanny pack or satchel (for men and for women). Everyone has heard of petty theft and pickpocketing in the big Italian cities. It is important to protect your valuables while walking amongst large crowds. Many Italians wear fanny packs/ satchels everyday.
The short answer is yes. Drinking water from the tap in Italy is considered safe. Tap water in the major cities and towns around Italy is safe for consumption, and there are thousands of old-style water fountains dotted around cities, like Rome, where you can fill up water bottles.
TAXIS. Again, a tip is not expected by taxi drivers in Italy. If you really enjoyed the ride, you can round up your fare. If the trip was particularly long, you can round up to the nearest ten Euro.