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<\/a>I was constantly thinking about\u00a0finances. How was I going to afford to live there? Was I going to run out of money? What if I get stranded somewhere and don\u2019t have any cash? How was I going to exchange money?\u00a0<\/span><\/p>\nHowever, after a couple of weeks here in Buenos Aires, I\u2019ve adjusted to the different economic system. While I can\u2019t use my debit card or Venmo like I\u2019m used to, cash is easy to use and it\u2019s easy to keep track of how much money I have. I\u2019d like to acknowledge that while living in Argentina is cheaper for me because of a favorable exchange rate, that does not mean that the same is true for the Argentines who live here. Every day, Argentines face higher and higher inflation which makes budgeting difficult and makes necessary goods cost twice as much in a year. Here are some examples of how this has affected daily life in Argentina:<\/span><\/p>\n In Argentina, there are two exchange rates. The first is the Red exchange rate. This is the official exchange rate set forth by the government\u2019s central bank. This is the rate that you\u2019ll see when you look it up online. The second rate is the Blue rate. This rate is an unofficial rate that changes more frequently and more accurately represents the current exchange rate.\u00a0<\/span><\/p>\n When I was preparing for Argentina, I was told to wait to exchange my money until I got there so that I could use the blue rate and get more pesos for my buck. One of the first things I did after I arrived at my homestay was go to the exchange shop to exchange my money. At the shop, I got 366 pesos per dollar. If I had gone to the bank to exchange my money, I would have only gotten 170 pesos per dollar.\u00a0<\/span><\/p>\n \u00a0 \u00a02 Almost all business in Argentina is done in cash, from buying lunch to paying the guy who comes to fix the sink. Even when using services like Uber, you can opt to pay in cash. Many Argentines are reluctant to store their money in the bank because they don\u2019t trust it. So they\u2019ll hide their money in a safe place at home, often in US Dollars. Then they\u2019ll take out what they need for the day, convert it, and carry on.\u00a0<\/span><\/p>\n \u00a0 \u00a03. Prices<\/span><\/p>\n When you first look at prices in Argentina, you may be shocked to find that a simple Big Mac costs $1800. But don\u2019t worry, that is a reasonable price for a good meal in Argentina. Inflation has led to higher and higher prices in Argentina with the peso valuing less and less. The cheapest product I\u2019ve seen during my time here cost 25 pesos. Argentina has a cent (called the centavo), but inflation has made prices so high that it’s almost never used.\u00a0<\/span><\/p>\n Not only are prices high, but they change frequently. It\u2019s not unusual to be handed a menu with prices crossed out and changed. A coffee that cost 540 pesos this week may cost 620 pesos next week.<\/span><\/p>\n \u00a0 \u00a04. Installment Plans aka Cuotas<\/span><\/p>\n It\u2019s not uncommon to see signs outside of stores advertising payment plans for larger items, like bedding sets or expensive new shoes. These items can cost thousands of pesos and most people don\u2019t have the full amount on hand. So, it\u2019s not uncommon for people to set up monthly payments to make the purchase more reasonable.\u00a0<\/span><\/p>\n \u00a0 \u00a05. Rounding Down Because most business is done in cash using larger bills, most stores prefer exact change. But if something comes out to 566 pesos, the store will simply round down to 560 pesos. Some stores will even give discounts if you don\u2019t have exact change. For example, I bought something that cost 520 pesos, but I didn\u2019t have any smaller denominations, so I only paid 500 pesos.\u00a0<\/span><\/p>\n While it definitely took a little getting used to, I\u2019ve adapted to the Argentine economic system. Like all of my experience here, all it took was the first step and some practice. While I don\u2019t know exactly what these next 3 months will be like, I\u2019m looking forward to all the new things I\u2019ll get to experience. My advice to you future exchange students is this: Do some research and take that first step. It\u2019ll turn out okay.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Written by: Maddy Simpson\u00a0 |\u00a0 Spring 2023 ISEP Exchange in Buenos Aires – Universidad del Salvador As I was preparing for my time here in\u00a0Argentina, I was constantly thinking about\u00a0finances. How was I going to afford to live there? Was … Continue reading \n
<\/a>. Cash, Cash, Cash<\/span><\/p>\n<\/a><\/span><\/p>\n