More Bang For Your Buck Or Less Value for Your Money – What The U.S. Dollar Surge Means For You And Your Wallet

Those paying attention to the news know that the U.S. dollar has surged since the presidential election. But what does that mean for you, your wallet and your everyday spending? Let's break it down simply, as a stronger dollar impacts your money’s progress.

Don't Miss:

• Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you.
• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Last Chance to get 4,000 of its pre-IPO shares for just $0.26/share!

The Upsides: Travel, Imports and Lower Prices

A strong dollar means that the U.S. dollar is worth more than other currencies worldwide. This is a good time if you love traveling or buying imported goods. A stronger dollar means international travel becomes cheaper so that European vacation won’t burn as big a hole in your pocket as you thought because your dollars can buy more euros now than they could a few months ago. Hotels, meals, souvenirs and all the fun stuff you want to do abroad will cost you less in terms of dollars – giving you more bang for your buck.

You'll also notice some imported goods, like luxury cars, electronics or even food items, cost a bit less. As Business Insider reports, foreign companies want to keep selling to U.S. consumers and the stronger dollar helps them price their products more affordably here.

See Also: It’s no wonder Jeff Bezos holds over $70 million in art — this alternative asset has outpaced the S&P 500 since 1995, delivering an average annual return of 11.4%. Here’s how everyday investors are getting started.

The Downsides: Trouble for U.S. Exports and Jobs

Of course, it's not all good news. A stronger dollar also means American-made products become more expensive for people in other countries. If you work in an industry that sells goods to other countries – like manufacturing, farming or tech – this could be a problem. Higher prices overseas mean fewer buyers, which can hurt company profits and lead to cutbacks or job losses.

Sam Stovall, chief investment strategist at CFRA Research, told Business Insider that about 40% of revenues from S&P 500 companies come from overseas operations. If you invest in companies that do a lot of business overseas, like big multinational corporations, their profits might take a hit when they convert foreign earnings back into dollars. “As a result, the higher dollar will likely result in lower profits from overseas operations, depressing the company’s overall earnings,” Stovall stated. So, if your investments are heavy in U.S. companies that sell internationally, you may want to monitor their earnings reports.

Trending: The average American couple has saved this much money for retirement — How do you compare?

Groceries and Gas Prices

While cheaper imports can help keep prices down, products made in the U.S. could become pricier, especially if they rely on foreign demand. As mentioned, American farmers who export a lot might see fewer buyers abroad, which could mean fewer sales and more pressure on prices at home.

Gas prices, however, could benefit from a strong dollar. Since oil is priced globally in dollars, a stronger currency could mean slightly cheaper gas at the pump, as long as there aren't other supply issues messing with oil prices.

Trending: Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – with $1,000 you can invest at just $0.26/share!

Is It Good or Bad? It Depends

Depending on your circumstances, a higher dollar may or may not be advantageous. This surge may benefit you if you plan a trip overseas or purchase imported products such as expensive cars. But if your income depends on U.S. exports or if your investments are tied to companies doing a lot of business overseas, you could be feeling the downside.

In the end, the value of the dollar impacts all of us differently – some will get more value for their money, while others might find they're getting less. Keeping an eye on how the dollar affects the things you buy, the places you travel and even the stocks you hold can help you make the most of your money, whether the dollar is up or down.

Read Next:

• Many are using this retirement income calculator to check if they’re on pace — here’s a breakdown on what’s behind this formula.
• Studies show 50% of consumers think Financial Advisors cost much more than they do — to debunk this, this company provides matching for free and a complimentary first call with the matched advisor.