Wow, sounds like an awesome trip to plan, but overwhelming as well!
As for currencies: most of the countries your visit have the Euro, except for Switzerland (Swis Franks) and UK (Pound Sterling).
Germany and France are more leaning towards cash, for most other countries a credit card is enough (make sure it is set te be used in Europe and/or Worldwide).
Tipping is not a thing here in Europe as it is in the USA. Your choice to leave some coins on the table, make the total amount a round number (e.g. if you have to pay € 3,85 for a coffee you can make it € 4,00. Also note, we use a comma before the last 2 numbers in a currency), add a set amount (e.g. € 5,00 per person) or give 10% of the bill. This is mostly at restaurants.
If you have a tour guide a tip € 5,00 to € 10,00 per person is appreciated. Tipping your taxi driver or bell boy might be different in every country you visit (check before you go).
Munich isn't a big city, so more than 2 days is too much (unless you want to visit the Bavarian Alps).
As for places to stay: the more in the centre of a city, the more expensive it will be. Check for public transport options and try to read some experiences. You might want to use sites as booking.com or trivago to search for hotels.
Travelodge, like Sheryll mentioned, can still be found in the UK, but is not as cheap as they used to be. Last year we stayed at a Campanile hotel in Dartford, but it was still an hour commute into London's city centre.
Anyway, have fun with all your preperations.
And know you can always save money by just walking around a city and taking in all the sights.
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