Prague is an amazing city with so many things to offer. Prague is one of the few cities, formerly under the rule of the Communist regime, that has made an incredible come back. The city is now one of Europe's top destinations for travelers and study abroad students alike. Prague has incredible history, architecture, culture, food, and entertainment.
Luckily for you the Czech Republic still uses the Czech Koruna which comes out to 18.99 koruna per US dollar. Once again like in Budapest (although not as much as you could in Budapest) you can really get your money's worth. Now is the time to spend a little more on a nice dinner or nice souvenirs for family and friends back home (the Czech hand painted egg ornament is an important Czech tradition and favorite souvenir). Another word of advice, don't tip too much. Tipping is not common among Czechs but since you are a foreigner you are expected to leave something. In all my time in Prague I never tipped more than 20 Czech korunas for a meal, which is the equivalent of $1.05. Don't expect exceptional service in Prague either, unless you're lucky enough to stay at a five star hotel the general rule in the Czech Republic is "the customer is always wrong." Don't be offended if you get an unfriendly waiter or are forced to wait 20 minutes for your check, it's just the norm.
Something else to keep in mind... the Czech Republic only came out of the rule of the Communist regime 21 years ago, and besides the fact that many of the older generation actually long for the days of Communism (it may sound ridiculous but imagine a world where everyone has a job and people are generally well off and you can understand their disdain for the harsh effects of a Capitalist system). The Czech Republic itself is also only 21 years old as it was split apart from Slovakia following the fall of Communism-- this has created a fair amount of tension over ownership of films, songs, and novels that were once Czechoslovakian. Their languages are only slightly different and Czechs get a long fine with Slovaks but there is still some underlying tension you should be aware of before you claim something is solely Czech or Slovak etc. As you keep this in mind it's good to know that the Czech culture is still very much affected by its Communist years. This manifests itself in a very quiet populace-- the Czechs aren't generally loud, especially in public on trams or in metro stations-- and you would do well to follow suit. It is also a common courtesy to give your seat up on a tram or subway car to the elderly, disabled, or pregnant women-- if you do you'll get an appreciative smile and quiet thank you-- help defeat the loud rude American stereotype and be sure to do this.
To get a proper history lesson and to really appreciate the architecture in Prague you must visit the following:
-Prague Castle (Prazsky hrad) the largest castle in the world with St. Vitus Cathedral
-Old Town (Staré Město) with its Old Town Square and the Astronomical Clock
-Charles Bridge (Karlův Most)
-New Town (Nové město) and the historic Wenceslas Square (this square was filled to the brim with people demanding the end of Communism after the fall of the Berlin Wall in 1989)
-Malá Strana (Lesser Quarter) with its Infant Jesus of Prague and its picturesque streets
-Josefov (the old Jewish quarter) with Old Jewish Cemetery and Old New Synagogue
-The Lennon Wall (after John Lennon was shot a Mexican student studying abroad in Prague painted his portrait on a wall in the neighborhood along the Vltava river close to the Charles Bridge)-- now students and travelers from all over the world sign their names on the wall
-Vysehrad (located in Prague 2)- this is the ancient castle was built in the 10th century overlooking the Vltava River. It is also next to my former school in Prague and holds a special place in my heart because I had to walk past it to get to class everyday.
-Try to see a show at the National Theatre (Narodni Divadlo)-- their ballets are fantastic.