The Takeaway. In Japan, you'll use a Suica (or Icoca) card for local transport and most small purchases, and a credit card for big purchases (hotels etc). But you still need Japanese cash for places that don't take cards.
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For example, if you are traveling from the U.S., wait to exchange your dollars for yen until you have arrived in Japan. However, you will get the most favorable rates for yen in Southeast Asian countries rather than in Japan.
Luckily, it's a very safe country (one of our favorite things about Japan), and the biggest risk is probably losing or misplacing your cash. Regardless, of course, be smart and take reasonable precautions if carrying large sums of money.
In most shops and facilities you can pay with large bills even for a small purchase, however, street vendors might refuse to change large bills. Only Japanese yen are accepted in Japan. You cannot pay for your transactions in any other currency. Most drink vending machines accept 1,000 yen notes and coins.
In short, I think you will be absolutely fine since your flight and hotels are paid for already. $1000 should be sufficient, but you must be strict with yourself. $50 a day just about creeps overbudget. I think you should set yourself about $30 a day and maybe sometimes jump up to $50/60 if you wanna try something.
You could maybe do it, but it would be a stretch. Look at it this way. $500 for 2 weeks, you're giving yourself $35 a day. If you spend the whole two weeks in Tokyo and never leave the city, you could probably do it.
Total Spending Money in JapanSo, for an 8-day trip, we recommend $640 dollars of spending money, which breaks down to about $80 dollars per person per day. Keep in mind that this does not include your airfare, hotels, land transportation, travel insurance, luggage transfers, or pocket Wi-Fi.
Overall, the cost of food for tourists in Japan can be higher than in Europe, particularly for dining out and grocery shopping. However, there are also many affordable food options in Japan, such as street food and local eateries, that offer a taste of Japanese cuisine without breaking the budget.
Tipping in Japan is not expected, and attempts to leave a tip will almost certainly be turned down (a potentially awkward moment). In Japan, it's thought that by dining out or drinking at a bar, you are already paying the establishment for good service.