Saturday, March 14, 2015

Let's talk finance

For those who aren't as familiar with exchange rates and what they mean, let me explain why we are seriously happy campers about the euro's recent headline-making decline.

Currencies (dollars, euros, yen, pounds sterling, etc.) are traded via bank and in exchanges and just like stocks, change value not just every day, but every minute. Unless you are traveling, the effect of the exchange rate on your life is not immediately obvious (although present). However, if you are in a situation like ours...where we earn in dollars and spend in euros...we are ALWAYS aware of the exchange rate because it directly affects our daily spending power.

Last summer, the euro was worth about $1.39...I think even $1.40 at certain points. That meant that an item that cost 10 euros translated into $14. Now? The same items that cost 10 euros now translate to $10.50: a savings of $3.50. HUGE impact on our lives, because we have an effective discount of 30% or more on every purchase.

The prediction is that the euro will hit parity this year, meaning 1 euro is the same as 1 dollar...also meaning that now is the perfect time to come visit us!

Meanwhile, I think I'll go out shopping!

Love,

Alexandra

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