💱 Lesson 26: Currencies and Cost

Currency is the money used in a country or region. Canada uses the Canadian dollar. The United States uses the US dollar. Japan uses the yen. Many European countries use the euro.

The euro is used by many countries in the European Union. It makes travel and trade easier because people do not need to exchange money every time they cross a border inside the eurozone.

An exchange rate tells you how much one currency is worth compared with another. If the Canadian dollar changes against the euro, the same hotel in Italy can feel cheaper or more expensive to a Canadian traveler.

Some countries feel expensive because wages, rent, taxes, imports, and demand are high. Others feel cheaper because local wages and costs are lower. Tourist areas are often more expensive than local neighborhoods.

A strong currency can make imports cheaper and foreign travel easier. A weak currency can make exports cheaper and attract tourists, but imported goods may become expensive.

Cost of living is the price of everyday life: housing, food, transport, healthcare, education, and utilities. Two countries can both be beautiful, but cost very different amounts to live in.