But what if we told you it’s as easy as devouring a McDonald’s Big Mac?
Invented by the Economist in 1986 and relaunched every six months, the Big Mac Index was created to measure the differences in purchasing power between nations on an identical ‘basket of goods’, such as a Big Mac.
So if you’re an Aussie thinking of doing some travelling during the second half of the year, here are the top three places where the Aussie dollar is overvalued against the local currency:
Britain (4% overvalued against the British pound)
Japan (19% overvalued against the Japanese yen)
China (40% overvalued against the Chinese yuan)
On the other hand, places in Europe that use the Euro and the US were the two destinations that undervalued the Aussie dollar, 7% and 26% respectively.
Aside from the destination, there are a few other ways Aussie travellers can help ensure a great value holiday and save a few dollars along the way.
4 ways to get the most value out of your next holiday
Pay like a local - When overseas you might be given the option to pay in Aussie dollars instead of local currency. This is called dynamic currency conversion and should be avoided whenever possible, as it could see you being stung with a hefty dynamic currency conversion fee, plus the regular old foreign transaction fee on top.
Have travel-friendly plastic - Speaking of foreign transaction fees, it’s also worth looking into picking up a card that’s designed for travel - whether that’s a rewards card loaded with travel perks or a card that charges no foreign transaction fees. And if you’re stumped on where to start, you can check out our 2019 Mozo Experts Choice Award travel money winners!
Give yourself peace of mind -Taking out a travel insurance policy before you fly is a great way not only to safeguard your holiday, but to ensure you won’t fork out hundreds of dollars if you’re ever in a sticky situation like a medical emergency. Just be sure to double check your PDS before you leave to make sure you understand everything you’re covered for.
Shop around on currency converters - If you’re planning on buying some foreign currency before your trip, take the time to shop around on FX specialists to be sure you’re getting a competitive exchange rate.
Want more ways to get the most out of your holiday? Then head on over to our travel money hub, which is filled with heaps of tips and tricks on everything from travel cards to foreign exchange.