Here's why you should stop worrying about the price of the Aussie dollar for your next holiday

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Australians love their holidays. In the last financial year we took nine million trips overseas.

With the Aussie dollar falling, people regularly wonder whether it’s worth buying currency in advance of their trip.

The simple answer to this is that it’s unlikely to make a huge difference to your pocket unless you’re planning on spending vast sums of money, and could backfire anyway.

So far we’ve seen the Aussie fall by just over 5% against the US Dollar – at the start of the year it bought US82c, now it buys just under US78c.

Putting that into dollar terms, for every $AU100 you had to spend at the beginning of the year it bought you $US82. Now, after the 5% drop, that same $AU100 only buys you $US78.

With a shopping spree of $US2000, the saving adds up to a total of $US80.

The other critical part of this equation is that the dollar can, as we’ve seen in recent days, rise as well as fall.

So if you swap out currency thinking you’ll save a few bucks the market could move against you, resulting in those US dollars you’re holding falling in value.

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