I have read suggestions on having single dollar bills handy while traveling in Costa Rica, to use for tips and small items. Is this correct? Is there any advantage to doing that as opposed to using the CR currency?

Thanks

US$ are fine in Costa Rica, esp in the touristed areas. ATMs, when you can find a working one, often give you a choice of US$ or Costa Rican colones. I gave US$ or colones as tips (sometimes both), depending on what I had available. Tried to get rid of all colones before departing so used them for everything I could on the last day.

Many places take VISA credit cards. (Reminder: a lot of places took ONLY Visa CC.) Cash used primarily for tips and small purchases (except where MC not accepted).

"Is there any advantage to doing that as opposed to using the CR currency?"

As for your advantage - when speaking of one dollar bills, they are easier to carry than a bunch of coins. And due partly maybe to laziness, just more simple.

As to their advantage - the USD is more valuable than their currency.

So when we are traveling we tip the same as we would at home, a dollar is a dollar to us.

A disadvantage to using USD at a store is that the exchange rate the store will give you will sometimes be worse than what you could have got at a bank. My last trip I wanted to save a 5000 Colone Bill as a souvenir (the colorful one with the jaguar on it), but i spent it. Maybe next time.