Cash vs. plastic when traveling to Rome and Positano

A money belt or neck pouch works.
But carry the coins in your pocket no one wants those that bad so you spend them usually as needed for toilets.
Withdraw cash from the airport works or if you don't think you will feel comfortable doing this after flying all night get some Euros from your home bank before you go about 100 euros small bills just for the convenience.
If you take money out of bank just take enough for the day and leave the rest in a safe if possible.
That is a reasonable estimate for food for two people. a day.
Use a debit card to take out cash only. Don't use a credit to get cash but only in emergencies.
I have never done it and never have had a problem but it is ok if you are really worried about someone stealing your 4 digit pin number to access your checking account that you open another one just for the trip.
Maybe use credit card when you can for meals so you don't run out of cash and you limit the times you go to an ATM.

I have been to Rome and Campania many times. Yes, absolutely use an under pants pouch to store passport, cash and credit cards. Each partner should do this to minimize issues. I always arrive with some Euros, about 100 or at least 50 so you can just GO from airport etc. I make 1-2 ATM trips in SAFE areas per two week trip. I recommend a minimum of 2 credit cards, keep one in pouch with most of cash, and keep 100 or less Euros and one credit card where you can access but safe, like a zippered shirt pocket. Make sure that you sign up for alerts from you bank for suspicous charges, and let them know where you are traveling. The under the clothing pouch is NOT for use in public, don't reach into it in a shop, anyone can see this, if you have to turn away from people or do it in a restroom to transfer what you need into your safe pocket. Try to have what you need for your outing handy, you can stock up again before you leave hotel for the evening.I don't recommed a debit card since once it is gone that's it...with CC you have recourse. I have never opened up a special account. I do not recommend keeping any cash wallets etc in a purse or backpack. If you have a woman traveling with you look for the "bra stash" on amazon...I always travel with this and keep day cash and 1 credit card in it. Your estimates for daily costs for food are accurrate for inexpensive places, and light meals more for Positano and Capri etc. Italians do not eat a big breakfast, coffee and pastry is about it. Your hotels may offer American style buffet etc.
You did not ask, but it will be HOTTER than you think at that time of year, drink a lot of water and if going to Positano, Capri or any beaches buy cheapo $10 flat easily packable water shoes before you go in order to navigate rocks. It is difficult to buy them there, they sell out and may not have your size...you can leave them behind before you head home. You cannot get into or out of the water without them. If you are bringing Teva style sandals that can get wet these can double as a water shoe, but I find them too clunky. Enjoy your trip!

In case you haven't already, go to the Money info here on the RS website. Abswers to all these questions and many more awaits you there.

I do not recommend leaving ANY thing valuable in a safe in your room. Put major cash passports and extra credit cards in pouch under pants if you want to really enjoy your trip. I put my passport and cash in a thin zip lock so they don't get sweaty, then place in pouch.

Plastic is much more widely accepted. In a recent 30 day trip to Italy we used a charge card for anything above 20 Euro and only used cash for small items just like we do at home. There is no need to carry that much cash and/or have to make that many ATM withdrawals. Now, every once in awhile we did use cash at B&Bs that gave a discount for cash. RS travel guides usually will say in their descriptions.
1. Yes, use a money belt for credit cards, passports and for more than one day's cash.
2. We did and had no problem at Malpensa Airport in Milan.
2, Probably a little less as breakfast is included in B&Bs and many hotels. We used a credit card for all of our dinners and many lunches.
3. Any bank. As far as we could tell the rates are the same at all banks. That said, avoid commercial ATMs such as Travelex and never accept direct currency conversion to US $. Always make the charge in Euros. The same goes for any credit card purchase.
4. We used our primary US account. I do not believe the chances of a stolen/skimmed card are any different in Italy than at home.
5. Not asked, but carry a backup credit card and debit card just in case your bank blocks one or you lose one. We had our bank block a credit card while we were in Mianmar and are very glad we had a backup.

In response to your question:
1. We definitely recommend wearing a money belt in Roma and do not access it in a public area.
2. I do not recommend using a stand alone Bancomats (ATM's) at the airport or anywhere else because they are too easily tampered with. We only use bancomats attached to a bank and only when they are open. You could purchase a few hundred dollars before leaving the U.S.A.. The exchange rates are not so great, but doing this once is no big deal. Plus, when you consider the overall cost of the trip the cost is insignificant.
3. As for which banks to draw from, we have a Charles Schwab checking account and an ATM card, which we use only when we traveling abroad. They also refund exchange fees**. So, exchange fees cost us nothing and the checking account is free with no minimum balance. So, we do not pay any type of fees.

4. We do not use or primary checking account for foreign travel and see #3.

Buon viaggio,

I know fees are minimal, but I hate paying the extra $5 to take money out of a non-affiliated bank machine. The main bank we use here - Scotiabank - is a member of the Global ATM Alliance, so in Italy and France we can make withdrawals at BNP Paribas; in the UK we can use Barclays; in the USA we can use BoA. Now, I won't spend a half hour wandering around looking for a particular bank if I need the money now, but many online maps show where specific banks are located, so if I know we are getting to the withdraw money point, I'll have look and see if anything is near to where we will be. I know the extra fee isn't much, I just hate giving my money to banks ;) So you may want to check into that.

It is the other way round. At present, 1 EUR = 1,06551 USD

1. Do you reccomend using a money belt?
If you feel comfortable wearing one. I personally wear pants with zippered pockets where I can secure my passport and money clip.

2. Do you recommend/not reccommend withdrawing cash from the airport ATM upon arrival?
As opposed to anywhere else? If security is an issue, make sure you do your withdraw from a bank branch and not from a stand alone ATM or, a 3rd party machine.

3. In the US, we'd spent between $125 and $150 total per day for 2 people for breakfast, lunch and dinner. Dinner would be our highlight and would include drinks. Is this a reasonable estimate for meals in Rome and Positano? (Understand that $1 = $1.06 E)
That should be sufficient.

4. What bank do you recommend for withdrawing cash? We have been told to use large banks only and understand that fees are differ based on your credit/debit card.
Find out from your bank what Italian/European bank they're partnered with.

5. When using a debit card, are you comfortable with using your primary US account or would you suggest opening a new checking account to cover tbe expenses of the trip? (Meaning a way to possibly avoid possible issues that could occur that would affect your primary checking account)
Some feel more secure making their withdraws off a pre-paid cash card. I've had no issues in the past using my debit card for cash withdraws.