SavvySugar

What $100,000 Would Have Bought 10 Years Ago

SavvySugar — Sun, 04 Oct 2009 06:18:50 -0700

You may not have thought about what $100,000 would have bought in 1998, being that many of us were at the prom and watching non-rerun episodes of 90210. But 10 years later, money is on all of our minds, and maybe we worry a little more than we'd like. Most of us have a much better understanding of the value of a dollar than we did back then and can now truly get a feel for some of the surprises in terms of what $100,000 would have bought in 1998.

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How Much Is the Dollar Worth Compared to Other Currencies?

SavvySugar — Wed, 17 Dec 2008 09:30:19 -0800

The Federal Reserve announced an unprecedented move yesterday when it decided to cut the target fed funds rate to a range of zero to 0.25 percent. The target benchmark rate is a new low and is part of the Fed's overall effort to combat the recession.

The value of the dollar has been falling since late October when the Fed lowered rates to 1 percent, and it's possible that other currencies like the euro could continue gaining in strength against the dollar. Do you know what the buck is currently worth compared to other currencies? Take the quiz!

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What the Dollar's Comeback Means For Americans

SavvySugar — Wed, 29 Oct 2008 14:45:20 -0700

Hey now, look who's making a comeback! The dollar has strengthened significantly compared to most currencies except the yen, and this month alone it has gained 11 percent against the euro. It could be a temporary trend that disappears as quickly as it happened, but The Wall Street Journal helps us understand how the current comeback affects Americans.

Investors: Because a stronger dollar pushes down the value of foreign assets, overseas investments will take a hit.
Consumers: A strong dollar will make imported goods cheaper, but any potential discounts depend on how flexible brands are with their suggested retail prices. While it's up in the air if the price of European designer goods will come down, the cost of European wine should fall 10 to 15 percent. Expect European auto makers to remain resilient to a strengthened dollar.
Travel: International airfares aren't budging yet but this could change, and in general a stronger dollar is good for some Americans who are pleased about more affordable shopping abroad. The biggest bargain is Iceland - airfare is 21 percent lower than last year, and any service that requires labor like tours or spa treatments are about 50 percent lower.

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The Zero-Dollar Bill, in Limited Circulation

SavvySugar — Mon, 06 Oct 2008 06:30:55 -0700

When most people get angry about the economy they express themselves with choice words, and artist Laura Belkin responded on a whole other creative level. The Manhattan artist is protesting by using her art as a statement about the US financial crisis.

Tomorrow, Laura will be on Wall Street distributing the 10,000 zero dollar bills she made. The bills are slightly smaller than the one-dollar bill and each one is original, signed and numbered by the artist. Laura created the zero-dollar print because she views the dollar bill "as symbolic of America’s stature in the world," and stripping it of its value is a criticism of the current American economy. What do you think of the print she created?

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New Yorkers Feeling Euro-Envy This Summer

SavvySugar — Tue, 05 Aug 2008 04:04:33 -0700

To understand what's happening with the dollar right now, you need only walk around the shopping centers of cities like New York and San Francisco. At first glance you'd think that Americans were busy blowing their dollars on whatever they please, but given a closer listen, you'll find these shoppers aren't American at all - they're European.

The New York Times examined the reactions of some Manhattanites who have come down with a collective case of Euro-envy this Summer, as they jealously watch European shoppers have at the city. The dollar's weakness compared to some currencies abroad has allowed travelers earning even modest incomes to enjoy all New York has to offer.

One 30-year-old New Yorker explained his feelings about his purchasing power: "It’s Psych 101 - jealousy. I’m jealous that I can’t go to Italy and buy 12 Prada bags, but they can come here and buy 18 of them." Another woman said her European friends visit New York and treat it like it's Candyland. While some New Yorkers are apparently a little bitter, all of the international traffic can only be good for the economy and for business owners who are able to profit.

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Want to Know What's in My Wallet?

SavvySugar — Mon, 07 Apr 2008 08:31:34 -0700

The new purple (and green) five dollar bill was released into circulation a few weeks ago, and I was finally lucky enough to get one in my hands! I think the front of the bill could use some more purple, but other than that the new bill didn't disappoint my high expectations.

Abe's makeover has made the new five significantly more sassy than the other older, less colorful bills. In the gallery below you can see how the new five compares to several of the existing bills, including the hundred, twenty, ten and the one dollar bill. I've also pointed out some of the differences I can see among the various bills. Have you gotten a hold of a new five yet?

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United States May Be a Bargain, But Is Lacking in Brains

SavvySugar — Mon, 31 Mar 2008 13:05:01 -0700

The US has become more cost competitive than ever before and has therefore moved up on the list of the most cost-efficient places in the world. The plunging dollar has made the US a cheaper place to do business than France, Britain, the Netherlands, and Italy.

The value of the Canadian dollar, Australian dollar, British pound, and other currencies have increased in double digits compared to the dollar, but Mexico is still the cheapest place to do business. The cheapest places in the US are Atlanta, Tampa, and the Dallas-Fort Worth area.

So if more businesses keep their factories in the US, will there be enough workers to fill their needs? AT&T has found that so far, the answer is no. The company has promised to bring 5,000 jobs from India back to the States but hasn't been able to find enough skilled workers to fill the positions. AT&T Chief Executive Randall Stephenson said he's especially alarmed by high school dropout rates as high as 50 percent in some areas. He explained, "We're able to do new product engineering in Bangalore as easily as we're able to do it in Austin, Texas. I know you don't like hearing that, but that's the way it is." His solution? A stronger US focus on education and keeping jobs - no small feat.

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Touring America's Troubles Is a New Activity

SavvySugar — Thu, 27 Mar 2008 14:33:08 -0700

When my dental hygienist told me that her German relatives were traveling to the US on organized shopping tours, the dollar's weakness became even more apparent to me. It's no secret that the dollar is in the dumps, and consumers across the ocean are rightfully taking advantage of its decline.

Another type of tour isn't taking place in our shopping centers, but in our struggling suburbs. Realty groups have begun Foreclosure Bus Tours, something that started in California but has made its way to Phoenix, Detroit, Kansas City, Orlando, and Jacksonville. The buses stop at empty homes that were foreclosed by lenders when owners couldn't make their mortgage payments. The tours give prospective buyers the opportunity to look inside the homes and ask questions about the nuances of purchasing a foreclosed property.

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News Flash: Amsterdam Doesn't Want Your Dollars

SavvySugar — Thu, 20 Mar 2008 09:53:07 -0700

Small currency exchanges in Amsterdam are refusing to exchange dollars because they're worried the shrinking currency will be worth even less by the time they're able to sell it. Tourists looking to sell their dollars in exchange for local money have to resort to larger exchange counters while they're on vacation. While it may not be the most convenient reality, exchange rates are generally best at banks, anyway. Meanwhile, the euro has remained strong and has risen 18 percent against the dollar in the last year.

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News Flash: The Purple Five Is Now in Circulation!

SavvySugar — Fri, 14 Mar 2008 06:27:44 -0700

Last month I told you how excited I was that the five dollar bill was getting a purple makeover, and I'm happy to announce that it's now in circulation! The Federal Reserve has started sending the fancy fives to banks, the banks then issue the bills to businesses, and eventually they'll make it into the hands of you and me. Of course the old fives will remain in circulation until they wear out, and the new purple accents will stand out even more when we compare them side by side. High five!

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