Time to buy US Money???

[DisneyStiles]

With the Canadian dollar in free fall again - I'm trying to decide what to do. We leave in 45 days and was planning on just using my Visa and a little bit of cash. Would it be wiser to buy the US money now and carry cash? What do you think? Or is there something else I'm not thinking of. Thanks.

 

[snickerboo]

Well, I wouldn't exactly say it's in 'free fall'. Trust me, we went at the end of October after it had gone from almost parity to below 80 cents. Now that's free fall! Luckily we'd paid for almost everything up front.

You're always taking a gamble since we never know what the dollar will do. You could go buy your money today at 92 cents and it could be 96 cents by the time you go or it could just as easily be 80 cents. Calculate how much money you want to take. Calculate what it will cost to buy it today. Figure that it probably wouldn't get higher than 95 cents while you're there. Calculate the difference. Are you the type that could handle the loss if you buy it today and the dollar goes up? Or are you the kind of person who would rather pay any difference *if* it goes up as insurance against it dropping.

When we were in this situation last year, I bought half of what I expected to spend once the dollar started to tank. I was grateful when I saw the dollar hit 78 cents. But while we were there, it rose to 86 cents which was almost the same as a what I paid for it. So, as I said, it's always a gamble.

 

[dancin Disney style]

Well, I wouldn't exactly say it's in 'free fall'. Trust me, we went at the end of October after it had gone from almost parity to below 80 cents. Now that's free fall! Luckily we'd paid for almost everything up front.

You're always taking a gamble since we never know what the dollar will do. You could go buy your money today at 92 cents and it could be 96 cents by the time you go or it could just as easily be 80 cents. Calculate how much money you want to take. Calculate what it will cost to buy it today. Figure that it probably wouldn't get higher than 95 cents while you're there. Calculate the difference. Are you the type that could handle the loss if you buy it today and the dollar goes up? Or are you the kind of person who would rather pay any difference *if* it goes up as insurance against it dropping.

When we were in this situation last year, I bought half of what I expected to spend once the dollar started to tank. I was grateful when I saw the dollar hit 78 cents. But while we were there, it rose to 86 cents which was almost the same as a what I paid for it. So, as I said, it's always a gamble.

Excellent advice!!!

I'm kind of in the same boat, but I only need about $400-$500 cash for spending money/tipping. Everything else has been paid already. I think I'm going to get mine tomorrow. I doubt it will get much better and even if it does I'm getting so little that the difference will be a few dollars and I can save that on something else I'm sure.

 

[candielips]

Why not pick up small amts here and there whenever you find yourself at the bank?
I know I am grabbing $100 US tonight when I do my banking because .92 is a good price.
After this week I'm going to have my DH pick up $25 every week or if the dollar goes up considerably we'll grab more, until we have what we need.

 

[DutchsMommy]

With the Canadian dollar in free fall again - I'm trying to decide what to do. We leave in 45 days and was planning on just using my Visa and a little bit of cash. Would it be wiser to buy the US money now and carry cash? What do you think? Or is there something else I'm not thinking of. Thanks.

Just FYI - if you use your (assuming CDN dollar) Visa, the exchange rate you will be dinged is high - there is an additional % added to the existing 'cash; exchange rate....so you may be better off to either get a USD Credit Card (Mastercard has one, likely Visa has similar) or carry more cash or travellers cheques. For future, you might want to think about a USD account, then you can buuy small amounts of US when you think the rate is fairly good and save up during the year for the trip. HTH.

 

[wendyt_ca]

Just FYI - if you use your (assuming CDN dollar) Visa, the exchange rate you will be dinged is high - there is an additional % added to the existing 'cash; exchange rate....so you may be better off to either get a USD Credit Card (Mastercard has one, likely Visa has similar) or carry more cash or travellers cheques. For future, you might want to think about a USD account, then you can buuy small amounts of US when you think the rate is fairly good and save up during the year for the trip. HTH.

I thought this too but when you exchange at the bank they also add a percentage for exchanging with them. I compared this to credit card purchases one time when I did exchange money and they were the same. Carrying Visa is just easier then carrying cash so that's what we always take. We risk the dollar dropping by the day it posts but it's a gamble either way cause it could even go up by the time it posts so we choose Visa cause we just find it easier.

We're going to Disney Nov 27-Dec 8 so hoping the dollar either stays around where it is or goes up thet would be awesome for our trip. We pay off our trip on Sept & Oct so a good dollar would be great then too lol.

 

[candizfan]

Usually credit card companies charge up to 2.5% of the converted amount as a fee.

I paid 60% back in 2001, so 8% or 10% is chump change really compared to that.

If the dollar is under 20% I just charge to my Canadian Visa and pay the 2.5% since it is not thousands of dollars.

Keep in mind that US credit cards often charge a fee since they are not used as often. The annual fee could run you more than your % fee on the $ you spend.

Any way you decide to go, have a GREAT trip.

 

[squirrel]

And if your credit card gives you something then it makes it better than changing $ at the bank.

I just paid off the rest of my trip yesterday and will get money back on my Canadian Tire credit card. Not a lot of money but at least it helps with the exchange rate charge.