This article was in response to one of Happy Schools Blog readers who is coming to U.S. with family ( wife and 2 kids) in H1B Visa. I was chatting with him and he had lots of questions about cost of living in U.S. I have seen few friends who come to U.S. in H1B Visa and they did lots of questions about cost of living, how much they can save every month, .. He sent me a list of items and was trying to find more details. First few months will be good learning process. Here’s the list and more details that will give an idea on what to expect in U.S.
Apartment Rent (2Bed/2Bath)
Rent of an apartment varies based on location in U.S. In school 2 Bed/2 Bath apartment rent was $600 in Texas, Florida rent was $700 and in New York area it will be around $1400. But, in average you can expect to pay $800 to $1000 as rent. There are ways to save money while renting an apartment.
Groceries and Food Expenses
For a family of 4, it will cost anywhere from $250 to $350 per month. You can save a lot by buying fresh produce in Farmers Market, provided there is one near the place you live. Usually, Indian community here in U.S. shop at Walmart and Indian Grocery stores.
Transport
Public transport is not avail;able all through the U.S. Cities like New York, LA, Washington has good network of public transportation. But, U.S. move by car. So, with family, you will definitely need a car. even if you take Metro train or bus to work, you will need car for shopping and other errands.
Car Insurance (New car)
Usually Car insurance for new driver in U.S. will be huge. For example, one of my roommate got new Honda Accord and his driving history was less than 1 year. Geico Quoted $1200 for 6 months, All State was around that same. But, there are car insurance companies that will provide car insurance for new drivers for around $500 to $700 per month for full coverage. I will write about Car Insurance and techniques to get cheap car insurance in separate article.
Car Insurance For Used Car
Car insurance companies consider lots of factors while quoting insurance premium for 6 months. Sine the value of the used car will be less than new car, for new driver, car insurance premium will be little less. When I got my first car for $1200, I paid $50 per month for car insurance. I just had liability coverage.
Used Car Auto Loan – Monthly Payment
Monthly payment on used car depends on car loan amount, loan term ( 5 years, 3 years, ..) and interest rate. Auto loan interest rate depends on credit history and credit score. If you are new to U.S. then you will have to go through list of process to get driving license, car loan, SSN, ..Bank might ask you for some co0signer if you don’t have credit history. But, sometimes you will get car loan approved with high interest rate.
In general interest rate for used car loan is few percentage higher than new car model.
House Maintenance
If you are going to stay in the apartment, then you dont need to worry about maientane. Apartment will ask you to pay security deposit. IF some damage happens to the apartment during your stay, you will have to pay for those damages.
New Car Maintenance Costs
If you buy new car like Honda Accord, Camry, ..there is not much to spend on maientance. If something goes wrong with the car, then it will be covered under warranty for 3 to 4 years. every 3000 miels you will have to change the oil. It will cost around $20 to $30.
Used Car Maintenance Costs
Depending on age of the car, maintenance cost will vary. Even 2 year old car is considered used car. But in general, used cars will give some trouble. How much you will have to spend depend son what goes wrong with the car. New car will not usually give any trouble for 6-7 years.
Movies/Entertainment
Movie ticket per person will be around $4 to $8 for adults. If you rent movies in Redbox, it will be $1 per day for rental.
Hair Salon
- Adults(Men) – $10 to $15
- Adults (women) – $12 to $20
- Kids – $8 to $10
Internet
There are 2 options for getting internet.
- Cable Internet – $35 to $45 per month
- DSL Connection – $20 to $35 per month
Cable TV
If you like to watch Indian Channels, then there are only 2 options. Dish Network or DirecTv. One Indian channel will cost $15 per month. They have package options and it will be 3-4 channels. I have Dish Network with one Indian Channel and other U.S. Channels and I pay $65 per month.
Telephone Connection
cheapest and best option is to go with Vonage. If you’d like, I can sen you referral. 2 months will be free for both of us. I will write in detail about Vonage in desperate article.
Cell Phone – Family plan starts cost around $60 month.
Schooling (books,stationery,any other expense):
We don’t have kids yet. So, it will be few years before I can write my expenses, but I will find the details from my relatives and friends.
Clothes(average for family of 4, middle class family)
You can buy clothes and dress during holiday sales. Shirt that sells for $40 can be purchased for $5 during holiday sale.
Utilities
Utilities includes electricity, Natural Gas, Water. You can expect to pay around $150 per month for all 3. Some apartments will include water in the rent. Cooking will not in Natural Gas in all the apartments.
Health Insurance
Doctor visits, health insurance, co-pay is all dependes on companies health insurance plan. Medical pan is customized for every firm, so you can figure out the details by looking at the health insurance plav descriptions.
Initial Expenses
When someone comes to US for the first time, there will be expenses associated with buying stuffs for the apartments. Like furnitures, bed, pillow, laundry baskets, trash cans, kitchen utensils, .. That could run anywhere from $500 to $1500. There ar eplace where you can get some times for free or buy from liquidation stores. I will wrire about furnitures in seperate article.