Panama is one of the most affordable countries in Central America; rates are usually low and, in general, traveling in Panama is not expensive. We suggest bringing a combination of cash, credit and debit cards.
If you are tempted to bring a lot of cash, bring traveler's checks instead. Depending on where you are staying, you should calculate your meals per day, possible transport or taxis, tips and exit tax ($20) into possible needs for cash allowance. Most restaurants and hotels accept major credit cards as well as traveller’s check.