Economical Adventuring: The Top 3 Countries with the Best Bang-for-Your-Buck
Trying to get the best bang for your buck? These three places have excellent USD exchange rates that will make your dollar go a whole lot further.
We are all trying to get the most out of our money when it comes to traveling. As we all know, exploring the globe can be extremely expensive and financially exhausting. Well, according to a new study released by VOX, there are a few places that you can travel this year to save your pretty penny.
Here is a little economics lesson:
First, you must know how exchange rates work:
If you have ever traveled out of the country, you probably noticed that your US Dollar can be exchanged for, lets say, only .6 British Pounds. This is due to the global exchange rates. Exchange rates allow the global economy to price specific items when there are hundreds of currencies in circulation. If a country has more currency floating around, the price for an apple is going to be more expensive than a country with less currency - it all relates back to supply and demand.
Next, lets cover inflation:
Inflation is an increase in prices, and the fall of purchasing power of a currency. Essentially, when a currency is inflated, the price of the item goes up, while the value of the bill remains the same. On the other hand, deflation is when the price remains the same, but the purchasing power of the currency goes up; more bang for your buck.
To find places of the world that have the best bang for your buck, you need to look at the exchange rate in comparison to the inflation rate. Its time to pack your bags and hop a flight to these cheap places!
Photo: Hunter Berge
Here is a list of the top three places to travel in 2016 based on economic changes:
1. The United Kingdom
Due to the recent Brexit ordeal (when Britain withdrew from the EU), the pound has devalued quite a bit. Just last year, one USD purchased .64 British Pounds. Now, one USD will get you .77 GBP. Over the last year, their inflation rate has been extremely low as well, at just 0.6%. This means you dollar is exchanging for more GBP, while the GBP holds nearly the same purchasing power.
VOX Vacation Score: 18.3%
Last year, one USD would exchange for 16.64 MXN, this year it is exchanging for 19.63 MXN. At a 2.7% inflation rate, you are getting a lot more for your dollar than you would last year.
VOX Vacation Score: 14.8%
Although Argentina's inflation rate is extremely high at 43.9%, the exchange rate has nearly doubled from 9.39 to 15.14. Argentina is an absolutely incredible place to visit and you will be gaining almost 13% value from last year.
VOX Vacation Score: 12.3%
Here is a graph put together by VOX that has a list of the top and bottom
So if you are worried about spending too much money during your travels this fall and winter, take into consideration these places around the globe that are economically 'cheap'. Britain, Mexico, and Argentina are all beautiful places with extremely unique landscapes - places that might be worth changing your itinerary for!
*I did not conduct any of these studies. All credit belongs to VOX.
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Cover photo: Hunter Berge
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