Term
Hedge
Something you hold to protect yourself from a specific risk, not to make money. Cash dollars hedge you against peso depreciation, but pay nothing.
In pesos: If your tuition is in dollars, holding some dollars is a hedge: if the peso weakens, that part of your money weakens with it.
Where to go deeper
1/4 5 min Read What it means when the peso weakens A beginner's guide to how the peso-dollar exchange rate works: who moves it, why it swings, and what it means for your money.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.