Are Euros accepted in Prague and Budapest?

Euros are not generally accepted in Prague or Budapest. Crown (koruna) or forint. There are some places which would accept Euro but the exchange course is in their advantage, not yours. I always use local currency.

Neither country is on the Euro, they have their own currencies. However you will probably find hotels/restaurants/shops in tourist areas that will accept Euros for purchases but don't expect a good conversion rate. Most places will accept credit cards also, but it's best to just get some local currency from an ATM for cash purchases, it will be needed for some things - markets, metros/trams, etc.. I was in both cities last summer and never used any Euros.

EDIT Sorry to duplicate answers but Ilja and I were posting at the same time.

Always use the currency of the countries. If anything is accepted, it will be at a very unfavorable exchange rate because the merchant has the hassle of converting your money to his money. And, mostly likely, if there is change will be given to you in local currency. It is never smart to use a foreign currency. And the same for credit cards, never allow a credit card to charged in anything other than the local currency.

I am in Prague now and restaurants are totaling the bill in both crowns and euros to make it easier to figure out the tip, but they prefer getting paid in crowns.

what do you mean figure out the tip, staff in Prague get paid proper wages don't worry about tipping .if service is good round it up to the nearest 10 or 20 kc but please don't tip the 15-20% you do in the US it is just not a requirement.
Please don't pay in Euros. use local currency.

I know, I got a lecture from my Prague friends, they said I was "spoiling" the waiters ( I tipped the cab drivers too much also)! Sorry, lol. But, having the total in euros helps me know how much I spent. Prague is cheap to vacation in, btw!

yeah I know it is cheap but it won.t be for long if folk keep tipping at 20%

Don't get mad at me! I never said I tip 20%, just that I learned not to tip too
much :)

Huh?........

Lets not forget that, unlike the U.S. where the working class is exploited by the 2% who control the economy, wait staff in Europe are paid a living-wage making tipping unnecessary. Seriously though, the trend is to round up but I still aim for near 10% if the service was good; and that's generally easy.

The more interesting aspect of tipping is how and when. Leaving money on the table is sort of a no-no in a lot of countries. Leaving money in the bill folder is a little better, but still not real common in a lot of countries. Fairly common is to tell the waiter how much you wish to pay (especially when using a credit card) or how much change you would like back.

As James E. says - don't leave money on the table. Likelihood that they would end up in somebody else's than waiter's pocket is considerable. Example: waiter says 332 crowns. You hand him 500 crowns bill and say three hundred fifty, so waiter hands you back hundred fifty crowns. That's how it works in Prague and the rest of the Czech R. You don't say how much you want back. You say how much you pay. Unfortunately in more upscale restaurants in the center waiters are already spoiled by unthoughtful Americans and expect more than what is common in C.R.

Ilja always has good advice but I didn't like this comment: " Likelihood that they would end up in somebody else's than waiter's pocket is considerable". I think its inaccurate and an unfair generalization,

Yes, and very cynical.

Okay, okay. Lets not beat her up. She has been outstanding on this forum.

one thing I neglected to touch on is what to do with all those left over euros and forints. if you will PM me I will send you an address you can mail them to.

with left over money either try and spend it at the airport before you leave or drop it into one of the collection boxes you see in airports, they money will usually go to a local charity.larger amounts change at the airport before you fly.

"That's how it works in Prague and the rest of the Czech R."

That's how it works in Germany, too - maybe all of Europe.