• fabianlau

Travel like a Kid or King

Updated: Apr 8, 2020

Money, in different forms and make does have an illusional effect on the human mind and our usage of it. Extra care should be taken especially when handling the loose change. More so when we are handling foreign currency of a lower value.

Many of you are frequent travelers and when you are on a vacation mood, everyday is a weekend. You spend easily, you are more generous with treating friends, you tend to snack more, you try more things, spend on unique experiences and you are less calculative with smaller purchases.

Take for instance, one Sing dollar fetches approximately 3 Malaysia ringgit. Psychologically, we know that Sing dollar is stronger than Malaysia Ringgit. Thus, traveling to Malaysia and spending a day or even a weekend is common amongst Singaporeans where we can be on a wild spending spree. I love it when I insert my ATM card into a Malaysia bank because I am about thrice richer, with the inflated numbers.

"Currency exchange has somewhat cause an illusional

effect on how we treat the value of money."

Likewise, spending in countries like Thailand, India, Taiwan, Indonesia, where Sing currency is stronger, can be deemed spending "like a king" as we commonly put it, many people don't usually give much thought to daily spending. The multiple zeros on the rupia note does drives people really crazy and irritated. Let's just pay the bill and forget about calculating, with absolute confidence that it should be cheap.

How about traveling to countries with currencies almost equivalent to Sing dollar like Australia or to USA (3 years ago)? The common mindset is since it's the same value, then we don't even need any currency calculators for conversion. Spending is easy as what you see is what you pay. Similarly, almost equivalent currency value also drives the illusion that the same item has dropped in cost, it is now cheaper to travel to these countries and contribute to their economy.

We are usually more careful where Sing dollar is weaker, for instance, traveling to Japan and Europe. Every Sing dollar will fetch less than a dollar in those currencies. Thus, spending on an item is deemed more expensive and we tend to think twice before making that purchase.

Currency exchange has somewhat cause an illusional effect on how we treat the value of money, especially when we deal with foreign currencies of a weaker value.

Take extra care and make every cents count so to avoid getting ripped off abroad.

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