Currency Exchange – The Value of a Dollar

Foreign Paper Money 2

From my wonderful Guest Blogger Carissa Yfantis-

Before a recent trip to Grand Cayman (for vacation, not to visit our hidden millions), my husband and I were lamenting the fact that their money is worth more than the US dollar and that everything would be more expensive. We explained to our daughter that the Cayman dollar was worth $1.20 for every one US dollar, and that each time we purchased something, we would be paying 20 cents more. We told her that if we exchanged one US dollar for Cayman money, we only get back 80 cents. She didn’t think this was quite fair, but she didn’t appear to be overly concerned. We didn’t tell her that sometimes you have to pay an exchange fee in addition to the conversion. A discussion for another day.

Grand Cayman accepts US dollars, and most things are priced in Cayman and US dollars to make things easier for the sun addled tourists. We did not exchange money since it isn’t necessary, but looking back, I wish we had exchanged a few dollars. Physically handing over one dollar and receiving only 80 cents back would have been an amazing authentic experience for our daughter.

Even without actually exchanging money, she had some valuable authentic experiences. When we ate at restaurants, she saw both prices on the menus. She was shocked when her chicken tenders were $14 Cayman and $16.80 US and when her spaghetti was $15 Cayman and $18 US. Now things were getting personal, but not personal enough. We were paying for her food, so this “unfair” pricing didn’t have any impact. However, when we went to the resort gift shop on our last day, the exchange rate became real. We gave her a budget of $20 US, but reminded her about the 20 cent deduction per dollar. This left her with about $17 Cayman to spend. She was less than thrilled with the automatic $3 deduction from her spending limit, but when in Cayman… She chose a Christmas ornament that was $10 Cayman and keychain that was $4 Cayman (every tween needs at least 15 keychains to hang off their backpack-with no actual keys on them.) She had to leave behind the $5 magnet (that would have ended up lost in a desk drawer for all eternity). She advised us that in the future we should pick a place where their money is worth less than ours. We advised her that next time we could leave her home!

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