If you stay in rock-bottom accommodation and survive on a predominantly Nepali diet, you could live in Nepal on US$5.00 a day. If you prefer to stay in comfortable lodgings, eat in tourist-oriented restaurants and take the occasional taxi, your living costs are likely to be between US$15.00 and US$40.00 a day. At the top end, the sky is the limit. Organised treks with porters and guides cost US$40.00 - US$80.00 a day, depending on the level of luxury. Shoestring trekkers can save money by organising things themselves and staying in local teahouses along the way - you can get by on as little as US$10.00 - US$15.00 a day in the hills, as long as you stick to dhal bhaat (plate meals of curried lentils with rice) and avoid 'luxury' items, like beer and chocolate.

The official exchange rate is set by the government's Nepal Rastra Bank, but private banks and moneychangers often offer better deals. Cash and travellers cheques in major currencies can be changed in larger towns and cities, and ATMs are fairly common in Kathmandu, Pokhara and the Terai. Exchange rates and commissions can vary quite significantly, so shop around. There is no point changing money on the black-market - nine times out of ten, this is just an excuse for a scam.

When you change money legally, you are issued with a Foreign Exchange Encashment Receipt showing the amount of hard currency you have exchanged. If you leave Nepal via Kathmandu airport and haven't spent all your rupees, you can exchange up to 15% of the amount shown on these unused receipts back into hard currency. ATM receipts may also be acceptable.

Major international currencies such as the US dollars, Euros and pounds sterling are readily accepted, and the Indian rupee is also considered a 'hard' currency. Outside the Kathmandu Valley, it may be difficult to use large-denomination Nepali notes, so keep a decent portion of your money in small-denomination notes bills, particularly tens, twenties and hundreds. If you're trekking, take enough small-denomination cash with you to last the whole trek.

Tipping is becoming fairly common in upmarket restaurants in Kathmandu, so leave around 10% of the bill if service was good. There's no need to tip in cheaper establishments or to tip taxi drivers (who tend to round up to the nearest ten rupees in any case). Porters on treks, however, should be tipped around Rs 100 per day to supplement their meagre wages. Bargaining is commonplace in markets and tourist shops, but treat it as a form of polite social discourse rather than a matter of life and death.

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