First Person: What the Weakening Dollar Means to Our Family

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Month after month our family income remains the same but our dollars are buying less and less. It's a complaint we hear all around us from friends, family and neighbors. The problem is bigger than our purchasing power here at home, because many items we buy are either imported or made with imported materials, not the least of which is fuel. Here's what the weakening dollar means to our family and what we are doing to try and make up the difference.

Dollar to Euro Conversion

Our extended family is spread around the globe. After six years of missing each other (and four new babies added to the flock), we decided to meet at my brother's house in Spain. But between the time we started planning the trip and its execution a year later, the dollar lost $0.15 in relation to the euro. This added $450 to our $3,000 trip, forcing us to shorten our stay by two days and trade restaurant meals for outdoor picnics (luckily, Spain is sunny in summer).

More Dollars for Less Merchandise

Shopping at Costco to save money has become a way of life for our family. But even at Costco our dollars are bringing home less merchandise. Though the number of items in a bulk package appears to be the same as before, each item is now smaller, effectively offering us less for our money. Thus, for example, each toilet roll in an $18 package is 1/3 smaller than before, giving us the equivalent of $12 of product in last year's prices. We make up the difference by buying less and trying to use things smartly.

Buying Specialized Gear

We are avid hikers and my husband is a volunteer with Search and Rescue. Though we are pretty well supplied with gear for our own weekend activities, we had to purchase gear for my husband's volunteer work. Specialized clothing imported from the UK, a hiking knife from Japan, and a NATO stove made in Germany shot up in price because of the weakening dollar. Even goods sold at our favorite outdoor goods store rose in price, U.S.-made products included, because the price of metal, fuel and other imported materials cost more in relation to our weakening dollar. To make up the difference we sold $220 worth of our old gear to buy the new gear we had to have, which a year ago would have cost around $150.

Gift Imports

I am crazy about European chocolate, but because chocolate gives me migraines I indulge in it rarely (and only when I have migraine medications on hand). Every year for my birthday, my husband surprises me with a new type of imported chocolate from Denmark or Belgium. It's not a life or death thing, but it makes life sweeter. Though my husband never told me how much he spends on my chocolate, I do know that he spends around the same amount each year. This year, my chocolate surprise was half the size it was last year.

Rising Fuel Prices

The falling dollar is playing an active role in making our fuel more expensive. I still remember the days when I fueled my car for $35 in North Carolina. Now it costs me $100 to fuel the family SUV in Washington State. To save money, my husband and I now share a car whenever possible. This summer, though we have to run the AC unit because of the allergy air filter included in the system, we intend to cool the house to 77 degrees instead of our customary 70. We will also give up on turning on our outdoor Jacuzzi, which last year cost us $45 a month in heating, water and maintenance bills, but is sure to cost at least twice as much this year.

Helping Family Overseas

For decades, major financial transactions in Israel, where the majority of our extended family live, were linked to the U.S. Dollar in case the local currency should depreciate before payment was made in full. Today, the dollar has been replaced with the euro in all financial transactions. For this reason, helping our family members back home by sending them money has become more expensive for us. An old relative living in a retirement home is still paying the same rent of $600 a month, but now her payment is measured in euros and we need 30% more dollars to cover it.

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