Understanding How the Struggling Loonie Affects You
We hear about the dropping value of the loonie but unless we are actively involved in specific types of business or in trading commodities we might not pay a lot of attention to it. Yet it can have a dramatic impact on how many of those loonies we actually get to keep in our pockets.
There doesn’t seem to be any good news in sight for it to be on the rise either. Some are predicting that it’s going to drop to around 75 cents by the middle of the year.
Where this can have a dramatic impact is for those who are planning a summer vacation out of the country. If you are going to the US then you can expect it to cost you a whole lot more as your money isn’t up to par for exchange.
Even if you don’t have the luxury of an impending vacation you still have to eat and you may have noticed that your food bill is on the rise. This is because you are paying more for imported fruits and vegetables. You can generate some savings here by purchasing local produce, or even better start thinking about growing some of your own. Even if you are in an apartment you will be amazed at what you can grow in container gardens.
Think of the bright side, nothing tastes better than fresh grown fruits and veggies right out of the garden. Another good factor is that we are heading into the spring summer so we will have some good choices when it comes to locally grown foods. What we equally need to pay attention to is the hope of having a good summer both with the right amount of heat and rain, so our local food producers can glean some good crops.
Another potential problem is in the retail products that are being imported. Many companies will try and absorb the costs in the short term but eventually will have to raise their prices.
While many feel that shopping from home is good for the economy this is very true. What you do have to remember though is our economy relies on a great deal of import/export and with the loonie being low this has a huge impact.
Also, there is a roll over effect. You will find the price of eating out to be on the rise again because of the rise in food costs.
While we have to keep an eye on the loonie, and we have to be diligent about making sure our jobs are secure, we also have to be aware that we are in tax season and before you know it the tax deadline will be upon us.
If you are in need of tax help I am currently accepting new clients and would be most happy to assist you with your accounting needs.