The cost of a trip to Italy for a week will vary depending on your travel style and preferences. A budget traveler can expect to spend around 800-1000 euros, while a mid-range traveler can expect to spend around 1500-2000 euros.
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I like to set aside around 50 euros per day for travel expenses when traveling anywhere in Europe and, to be honest, I didn't even spend that half of the time in Italy – unless I was splurging on a day trip. You can easily get by on that while still enjoying yourself.
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).
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.
Bring $100-200 USD cash, but keep it stashed away and don't change into Euro. It's only to be used as a fallback if every ATM in the country is out of order at the same time. Use ATMs to withdraw Euro from cash machine in the airport upon arrival, and replenish your Euro supply at an ATM when you run low.
The average price of a 7-day trip to Italy is $1,170 for a solo traveler, $1,859 for a couple, and $2,034 for a family of 4. Italy hotels range from $50 to $232 per night with an average of $80, while most vacation rentals will cost $150 to $420 per night for the entire home.
Resist the urge to buy foreign currency before your trip.Some tourists feel like they just have to have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money.
Definitely use credit cards as much as possible. 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.
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).
Since every region of Italy accepts the euro (including the Vatican City and the Republic of San Marino), you shouldn't have too much trouble managing your money.
If you ask locals “Do you tip in Italy?”, they'll explain that while they sometimes leave a small tip, it's generally not necessary. In Italy, gratuity (or una mancia, pronounced oo-nah MAN-chah) is considered a bonus for exceptional service. And it's not often that you'll find a tip jar at a register.
Only a passport is needed to enter Italy from the U.S., Canada, the U.K. and other European countries. No visas, no vaccinations (unless you're traveling from a known infected area). Getting through customs is typically a lax affair, with the customs officers barely taking notice of your presence.