Whether $100 is considered a lot of money depends entirely on the currency it is valued in. $100 in U.S. dollars has a very different purchasing power than 100 pesos in Mexico. To determine if $100 is “a lot” in Mexican pesos, we need to consider the exchange rate between the U.S. dollar and the Mexican peso, prices of goods and services in Mexico, average incomes in Mexico, and the subjective perception of value.
Current Exchange Rate Between U.S. Dollar and Mexican Peso
As of October 11th, 2023, the exchange rate between the U.S. dollar and the Mexican peso is:
$1 USD = 20.32 MXN
This means that $100 USD is equivalent to approximately 2,032 MXN. The exchange rate fluctuates daily based on foreign exchange markets, but has remained in the range of 20-22 pesos per dollar for the last couple years.
Purchasing Power of $100 USD in Mexico
To understand if 2,032 MXN is “a lot” of money in Mexico, we need to look at what goods and services cost on average in Mexican pesos.
Food Costs
Food is a major expenditure for most families. Here are some average food costs in Mexico:
| Item | Cost in MXN |
| Loaf of bread | 20 |
| Liter of milk | 20 |
| Dozen eggs | 35 |
| Kilogram of rice | 16 |
| Kilogram of cheese | 90 |
| Kilogram of chicken | 56 |
| Kilogram of apples | 43 |
| Fast food combo meal | 80 |
As we can see from typical food prices, 2,032 MXN would buy a considerable amount of basic food items like bread, eggs, rice, and chicken. It would not be enough to fully stock a pantry, but could supplement a family’s needs for a week or two.
Housing Costs
Housing is often the biggest expense for families. Rental prices in Mexico vary significantly by location. Here are some average monthly rents in Mexico:
| City | Average Rent for 1 Bedroom Apartment |
| Mexico City | 8,000 MXN |
| Guadalajara | 4,500 MXN |
| Monterrey | 5,000 MXN |
| Cancun | 3,500 MXN |
| Oaxaca | 2,500 MXN |
While 2,032 MXN could cover a fraction of rent in cheaper cities like Oaxaca, it is not enough for even one month’s rent in the major metro areas. Housing costs quickly become unaffordable on such a small budget.
Transportation Costs
Getting around also represents a significant expense in Mexico. Here are some typical transportation costs:
| Item | Cost |
| One-way bus ticket | 12 MXN |
| Local subway/metro ride | 5 MXN |
| Taxi starting fare | 10 MXN |
| Liter of petrol | 22 MXN |
With 2,032 MXN, one could certainly get around locally using buses and metro for a couple weeks. But larger transportation expenses like taxis, petrol or intercity bus rides would quickly eat into the budget.
Other Common Expenses
Some other common expenses in Mexico include:
| Item | Cost |
| Movie ticket | 75 MXN |
| Pair of jeans | 500 MXN |
| Doctor’s visit | 300 MXN |
| Gym membership | 350 MXN/month |
| Electricity bill | 500 MXN/month |
| Water bill | 150 MXN/month |
While 2,032 MXN could cover a movie outing or a doctor’s appointment, it would not go very far for shopping, utilities, or other common monthly expenses.
Conclusions on Purchasing Power
In summary, while 2032 MXN ($100 USD) could provide supplemental food or transportation for a limited time, it is inadequate to cover major monthly expenses like rent, utilities, healthcare, and other costs associated with a decent standard of living. The purchasing power of $100 USD when converted to Mexican pesos is quite limited. It may subjectively feel like “a lot” of cash in hand, but its actual value does not go far for daily necessities and basic quality of life.
Average Income in Mexico
To better understand the value of 2,032 MXN, it helps to look at average income levels in Mexico.
Minimum Wage
As of 2023, the national daily minimum wage in Mexico is 172 MXN. For a full-time job at 6 days per week, this equals a monthly minimum wage income of:
172 MXN x 6 days x 4 weeks = 4,128 MXN
The 2,032 MXN equivalent of $100 USD is nearly half of what a minimum wage worker earns monthly in Mexico.
Average Salaries by Profession
Here are average monthly salaries across different professions in Mexico:
| Profession | Average Monthly Salary |
| Software Engineer | 27,000 MXN |
| Accountant | 12,000 MXN |
| Cashier | 6,500 MXN |
| Construction Worker | 8,900 MXN |
| Teacher | 9,300 MXN |
| Police Officer | 13,000 MXN |
For most middle-class professionals in Mexico, 2,032 MXN would represent only a small fraction of their monthly earnings. However, for lower wage workers like cashiers, teachers and construction workers, 2,032 MXN could make a more significant addition to their overall income.
Household Income
The median household income in Mexico is about 15,600 MXN per month. Therefore, for over half of Mexican households, 2,032 MXN equates to over 10% of their total monthly income. For poorer households, that proportion would be even higher.
Conclusions on Income
While 2,032 MXN is well below a professional middle-class income in Mexico, it does represent a substantial amount relative to minimum wage, lower-income jobs, and household incomes for a large portion of the population. When considered as a percentage of total earnings for low-income families, the purchasing power of $100 USD as pesos becomes more significant.
Subjective Perception of Value
Whether an amount of money feels like “a lot” is also highly subjective and depends on individual perspective.
Wealthy and Upper Class
For wealthy Mexicans and the upper class, 2,032 MXN represents a trivial sum. This amount would barely cover one dinner out or a taxi ride across the city. The ultra-wealthy would not even bend down to pick up 2,032 MXN if they dropped it.
Middle Class
For middle class Mexicans with comfortable incomes, 2,032 MXN is a moderate amount of disposable income. It offers options for entertainment, transportation, or saving, but does not confer any major purchasing power. They may feel happy or thankful to receive the amount as a gift, but it is not life-changing.
Working Class
Among Mexico’s working class and lower middle incomes, 2,032 MXN takes on more significance. While not enough to cover large expenses or bills, it provides substantial supplemental income to cover food, commuting, medicine, or other daily needs. For construction workers, farmers, street vendors and other working Mexicans, 2,032 MXN could subjectively feel like “a lot.”
Impoverished and Marginalized Groups
For the very poor in Mexico who live on a few hundred pesos per day, 2,032 MXN can be a massive amount of money. Indigenous groups, disabled individuals, the unemployed, and others in extreme poverty may view this sum as an unexpected boon. For a struggling family, it could stave off hunger, eviction, or other crises for a short period. The subjective value is compounded.
Conclusions on Perception
The purchasing power and subjective value of 2,032 MXN spans a wide spectrum across different socioeconomic groups in Mexico. While negligible to the rich, it can represent a meaningful amount to working class and impoverished Mexicans based on their relative incomes and daily struggles.
Conclusions
Given the exchange rates, price levels for basic goods and services, average income levels, and varying subjective perception of value across Mexican society, is $100 USD “a lot” of money when converted to Mexican pesos?
The clear answer is that it depends significantly on the context.
For wealthy Mexicans, $100 USD is a small, nearly meaningless amount when exchanged to pesos.
For average middle-class professionals, 2,032 MXN provides some useful disposable income but does not go far.
For working-class Mexicans and especially the impoverished, $100 USD in pesos can subjectively feel like a lot of money and provide substantial aid to meet daily needs and expenses.
So in summary, while $100 USD does not equate to a large fortune in Mexico, for a significant proportion of Mexican society living in poverty or on modest incomes, this amount in pesos can make an outsized positive difference when considering the value both objectively and subjectively. The purchasing power within the country ultimately determines whether a currency amount is “a lot.” Through that lens, $100 converted to pesos, while not huge, can go a long way for many Mexicans.