The dollar!!

gilly41

Hi
My son is coming back from working in America on Monday ---he says that the money he has made wont be worth as much over here when he exchanges it so he might as well have a good spend on clothes before he comes back

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after I had suggested he try to save as much as he can for his final year at Uni
Is he right???
I honestly dont know anything about the exchange rate!

lynzpower

try using XE.COM one of the most reliable exchange tools I find.

One dollar today is worth 54p

southernscouser

Depending on how much he has it might be worth looking at buying things to re-sell on ebay when he is back!

Obviously he could be laible to import tax when he returns. I dunno how feasible all this is, just throwing some ideas into the ring!

Pobby

In th USA I think your son will find clothes are a lot cheaper than here.

climbgirl

Well he's right in the sense that the exchange rates if you're coming into the UK are pretty poor at the moment (brilliant if you're sending money overseas!). So yes, he will get more bang for his US buck in the states than he will here, the purchasing power is greater because of the bad exchange rates.

However....if he is a student, then surely cash is more important than clothing?! If he needs stuff then yeah, buy it in the states. But if he's just spending for the sake of it he needs to change it back.

Does he have a US bank acccount and how quickly does he need the money? There's no guarantee of course, but he could always sit tight and wait for the rates to improve...

gilly41

Yes he says they are a lot cheaper over there

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though he has loads of clothes LOL
He reckons he has 1000 dollars in his account----which would still be worth over £500 when exchanged wouldnt it? It would certainly help him for his first term back at Uni

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though he doesnt see it like that!!!
He has been over there for 8 weeks and I half expected him to say he had spent the lot so not bad considering he has toured the whole of California and been to some fantastic places!
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kathfisch

The exchange rate is at a relatively low point (or high point depending on how you look at it!), meaning you get less pounds for your dollar at the mo. But who knows whether this will improve or worsen in the next little while, its hard to know. If it was going to improve he could keep the money in dollars for as long as he doesn't need it, and then exchange it at the best rate possible, but there are no guarantees. Clothes in the US are supposed to be quite cheap (from what I've heard) so perhaps a small amount of shopping would save money in the long term, but not if he blows it on unnecessary things obviously :rolleyes:

A bit of both perhaps, and not changing the dollars until he needs the change.

pin

Your son will get hammered on exchange rate fees when changing the Dollars back into pounds AND the fact that the dollar has been so weak recently is a double whammy.

I think he's right, might be an idea for your son to get a new wardrobe for university.

gilly41

Hi Climbgirl
Yes he does have a US account that his weekly wages have been paid in to(think i am correct!).
He will just be spending for the sake of it and he really does need the cash for Uni

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I will tell him he may be wise to sit tight as he does have his student loan to fall back on!
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lynzpower

Im inclined to agree with other posters.

Could he not get loads of stuff then sell it on ebay when he gets home?

gilly41

Yes that could be an idea---though he will probably try and get me to sell them on his behalf!!LOL
Thanks for all the advice everyone----I havent a clue about exchange rates(havent been abroad for over 20 years!!!)
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