Cuba has a dual currency system that can be confusing, so here's an overview: Cubans are paid by the government in Cuban Pesos (pictured here), also known as national pesos or CUPs, which have a completely different value than what tourists use. The commerce industry for visitors to the country uses Cuban Convertible Pesos, known best as CUCs (pronounced kind of like "cooks"). Currently, one CUC is equal to one USD, whereas one CUC is equal to 24 CUPs.
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When you exchange your USD or other form of currency for Cuban money, you'll get CUCs (make sure you do!). If you're exchanging USD to CUCs, be prepared to pay some hefty fees. The rate for USD when I travelled in late 2017 was about .87 to the dollar, not including a 10 percent tax on American money. While things are generally less expensive in the country, the US dollar doesn't necessarily go further because of the fees and taxes imposed. When you convert any unused CUCs back to USD, you will be losing out on a certain amount.
Tip 1: Before leaving the US, you can convert your dollars to Euros or even Canadian dollars so that when you arrive in Cuba, you will be converting your foreign cash into CUCs, but you won't be charged the extra tax for converting USD. I did this with Euros and got a better exchange rate than my travel mate, who directly converted USD to CUCs. It's one extra step, but depending on how much you are taking out at the time, it can make a difference.
Tip 2: Convert your Euros/USD/etc. into CUCs at the Cuban airport when you land — you'll likely get a better exchange rate than doing this elsewhere.
Tip 3: Convert any leftover cash back to USD while still in Cuba, as most places in the States (if any, due to current conditions) will not be able to change it back for you.
Image Source: POPSUGAR Photography / Hilary White