It really depends where are you from and how long you plan to study Chinese in Taipei may be worthy to do it or not.
On the daily life cash is the most convenient way to pay, many Taiwanese food places and local restaurants do not accept credit card, they even will not provide you a proper receipt depending on their size.
Opening a bank account or exchanging money it is an easy process if you can speak Chinese.
But you need to be careful because Taiwan’s currency regime is quite restricted. The New Taiwan Dollar (NTD, TWD or just NT) is not freely convertible.
People who do not reside in Taiwan can’t just freely buy and sell NT.
If you arrive as a tourist one of the first things you’ll realize is that there are no money exchange booths in Taiwan — you have to go to a bank, show your passport, etc.
What you will get is a multi-currency account where you can hold NT and several foreign currencies (USD and EUR for sure, but many banks offer AUD, NZD, SGD, HKD, GBP, JPY, etc accounts as well). But, and here is the catch, you can’t freely convert between NT and a foreign currency. You probably want to fund your account, and it’s probably going to happen through wire transfer. You send in USD / EUR / whatever from your home country, and since you want to use it in Taiwan, you want to convert it to NT. In order to do this, you have to go to the bank in person every single time, since as a foreigner without a residency permit in Taiwan you are subject to the strict currency regime. Once you are settled (got your ARC) you can do this online, but not as a tourist.
As each case is different, if you are planning to study or live in Taiwan or coming to study Chinese in Taipei, we highly recommend you that you sent us a message and we will provide you with a personalized answer.