Houston

1. Currency Used in Houston

• Currency Name: The official currency in Houston, as in the rest of the United States, is the United States Dollar (USD).
• Symbol: The dollar is represented by the symbol $.
• Denominations:
  • Coins: 1 cent (penny), 5 cents (nickel), 10 cents (dime), 25 cents (quarter), 50 cents (half-dollar, rarely used), and $1 coins (rarely used).
  • Banknotes: $1, $5, $10, $20, $50, and $100 are the most commonly used denominations. Larger denominations exist but are not in general circulation.

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2. Exchanging Foreign Currency

If you are arriving in Houston with foreign currency, you will need to exchange it for USD. Here are the main options:

Currency Exchange Locations

• Airports: Houston has two major airports—George Bush Intercontinental Airport (IAH) and William P. Hobby Airport (HOU). Both have currency exchange counters, but the rates are often less favorable due to high service fees.
• Banks: Major banks like Bank of America, Chase, and Wells Fargo offer currency exchange services. You may need to have an account with the bank, and rates are generally better than at airports.
• Currency Exchange Services: Specialized services like Travelex or local currency exchange offices in Houston (e.g., in the Galleria area) often provide competitive rates.
• ATMs: Some ATMs allow you to withdraw USD directly using a foreign debit or credit card. Be aware of fees (see below).

Tips for Currency Exchange

• Compare rates and fees before exchanging money.
• Avoid exchanging currency at hotels or tourist-heavy areas, as they often have poor rates.
• If possible, use ATMs for better exchange rates, but check with your home bank about international withdrawal fees.

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3. Banking Services in Houston

Houston has a robust banking system with a wide range of services for both visitors and immigrants.

Major Banks

• National Banks: Bank of America, Chase, Wells Fargo, Citibank, and U.S. Bank.
• Regional Banks: BBVA Compass, Frost Bank, and Amegy Bank.
• Credit Unions: Houston has several credit unions, such as Houston Federal Credit Union and TDECU, which often offer lower fees and better customer service.

Opening a Bank Account

If you are an immigrant or planning to stay long-term, opening a U.S. bank account is highly recommended. Requirements typically include:

• A valid passport or government-issued ID.
• Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) (some banks may allow you to open an account without these).
• Proof of address (e.g., utility bill or lease agreement).

Banking Fees

• Monthly maintenance fees: $5–$15 (can often be waived with direct deposit or minimum balance).
• ATM fees: $2–$5 for out-of-network ATMs.
• International wire transfer fees: $15–$50, depending on the bank and amount.

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4. Digital Payment Methods

Houston is a modern city, and digital payments are widely accepted. Here are the most common methods:

Credit and Debit Cards

• Widely Accepted: Visa, Mastercard, American Express, and Discover are accepted at most businesses, including restaurants, stores, and transportation services.
• Contactless Payments: Many businesses accept contactless payments via NFC-enabled cards.

Mobile Payment Apps

• Apple Pay, Google Pay, and Samsung Pay: Accepted at most major retailers and restaurants.
• Venmo and Cash App: Popular for peer-to-peer payments, such as splitting bills or paying rent.
• PayPal: Common for online transactions.

Other Digital Wallets

• Zelle: Frequently used for direct bank-to-bank transfers, especially for rent or utility payments.
• Cryptocurrency: While not mainstream, some niche businesses in Houston accept Bitcoin and other cryptocurrencies.

Tips for Digital Payments

• Always carry a small amount of cash, as some smaller businesses or food trucks may not accept cards or digital payments.
• Notify your bank or credit card provider of your travel plans to avoid issues with international transactions.

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5. Costs of Transactions

When managing money in Houston, be aware of the following costs:

ATM Fees

• Domestic ATMs: Free for in-network withdrawals; $2–$5 for out-of-network withdrawals.
• International ATMs: Your home bank may charge a foreign transaction fee (1–3%) and a flat withdrawal fee ($2–$5).

Credit Card Foreign Transaction Fees

• Many credit cards charge a foreign transaction fee of 1–3% for purchases made with a non-U.S. card. Consider using a card with no foreign transaction fees (e.g., Chase Sapphire Preferred, Capital One Venture).

Tipping

• Tipping is customary in Houston and should be factored into your budget. Common tipping rates:
  • Restaurants: 15–20% of the bill.
  • Taxis/Rideshares: 10–15%.
  • Hotel staff: $2–$5 per service.

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6. Local Considerations and Money Management Tips

• Sales Tax: Houston has a sales tax of 8.25%, which is added at the point of purchase. Prices displayed in stores do not include this tax, so budget accordingly.
• Cost of Living: Houston is relatively affordable compared to other major U.S. cities. However, costs can vary depending on your lifestyle and neighborhood.
  • Groceries: $300–$500 per month for a single person.
  • Rent: $1,200–$2,000 per month for a one-bedroom apartment in the city center.
  • Public transportation: $1.25 per ride on METRO buses and light rail.
• Emergency Cash: Always keep a small amount of cash on hand for emergencies or situations where cards are not accepted.
• Avoid Scams: Be cautious of unsolicited offers for currency exchange or financial services. Use reputable banks and services.

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7. Summary of Key Tips

• Use ATMs for better exchange rates but check fees.
• Open a U.S. bank account if staying long-term to avoid high international transaction fees.
• Carry a mix of cash and cards for flexibility.
• Use credit cards with no foreign transaction fees for purchases.
• Factor in sales tax and tipping when budgeting.

By following these guidelines, you can effectively manage your money and navigate the cost of living in Houston with ease. Let me know if you need further assistance!