When I was a teenager, my family vacationed in Mexico over winter break. The first year we visited, the United States dollar was worth only 4 Mexican pesos. On top of that, everything was so expensive! The next time we visited, the peso had been shook and the exchange rate changed dramatically. One American dollar was worth 25 pesos, but the prices in restaurants and stores had not changed. So it felt like paying with Monopoly money. And we sure had a good time playing. I’ll never forget one dinner we enjoyed at a Japanese hibachi place. The food was excellent and it was a multi-course cook in front of you deal. For our family of four with tip our bill was $25! Lucky ducks that we were, Mexico became a yearly pilgrimage. And as my sister and I got older and went out clubbing with friends, a single twenty would cover us for the whole night including food, drinks, cover charge and taxis both ways. It was amazing!
I’m sure you’ve heard me talk about my annual fall trip to Paris. Four years ago the US dollar was so strong that we were par with the euro! Which was fabulous. But over the past few years, the dollar has been sliding and now we sit at a huge deficit to the tune of everything is 15% more costly than it was a few years ago. Yikes. So even though my want list is at an all time high, sadly my purse strings are pulled tighter than ever making my spending budget at an all time low.
Fast forward to now and a recent trip to our favorite Northern Neighbor, Canada. I was in Montreal for business and before I flew, I looked up the exchange rate. Lo and behold the US dollar was doing ok comparatively. We were even a little ahead for once. So when I walked a few neighborhoods and browsed a few boutiques, I felt slightly more empowered with my spending dominance. What a nice change. I was able to pick up a few items, food related and clothing inspired, that I just love. And I’m so happy about not spending as much as I thought I might.
Travel is a great way to be reminded that the cost of everything is relative. A bottle of water in the grocery store is way cheaper than getting one from a street vendor in Central Park. And the corner hot dog guy’s prices pale in comparison to that same bottle of H2O purchased at a big concert venue. But speaking of relatives…
The exchange rate should never be confused with the rate of exchange– a term we associated with my dear Aunt Ferne (may she rest in peace) for her unbelievable ability to buy something on a Monday and return it on a Tuesday, only to buy more during the return trip but return Wednesday to, you guessed it, return! Her rate of return was usually 100%!
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