Currency

The U.S. and South Africa have completely opposite Economic systems.

For starters, our coinage is referred to as the dollar, while theirs is called the rand. Our money is significantly stronger, seven rand equals a dollar. Before the World Cup the dollar was worth nearly twice as much.

There is also a substantial contrasting method of payment in America. In South Africa everything is paid for in advance. This includes electricity, cell phones, Internet and as I found out today, hotels.

While in the U.S., we have bills for all of those things that we pay at the end of the month. Some locals here believe it helps people stay out of debt and prohibits people from over spending. While I believe this is partly true and that Americans shouldn’t have more than one credit card, I still think their system is flawed.

One hotel that we had reservations for required a 30-day in advance cancellation notice. This startled me, then I found out that we were supposed to pay for our accommodation nearly one week before our visit. It seemed backwards and unnecessary to me. I’m used to canceling three days to one to day in advance. I understand there is a high demand for rooms because of the World Cup, but if that is the case they should have no problem in finding someone to book the room.

We have also had a couple of nights without electricity because we used our allotted amount. This is a situation I have never experienced back home. I bought a cell phone but rarely use it because I never have airtime. While this keeps me from over spending on my phone, it also can prohibit me from making an emergency call if I have no minutes remaining.

American’s like to use credit cards; in South Africa they are generally accepted, but they are still frowned upon. One local said using your card is the American way so that is one stereotype of Americans. I have found that I carry a lot more cash on me here than I did back home.

South Africa’s Economy is triggered toward keeping people out of debit with everything paid for upfront, where as in the U.S., the preferred payment among some businesses and most consumers is credit.