The United States of America is a highly sought-after study destination for students from around the world due to its adaptable education system, lively campus atmosphere, outstanding academic reputation, diverse cultural experiences, and abundant job prospects.
However, it is important to note that studying in the USA can be quite costly for international students, considering both tuition fees and living expenses.
On average, the estimated annual cost of living for international students in the USA ranges from $12,000 to $20,000, translating to an average monthly expenditure of approximately $1,200 to $1,700.u
But, what does this expenditure entail? How was it calculated?
To get answers to all your questions, read this blog by MSM Unify to understand the deeper nuances of the cost of living in the US and plan better for your study-abroad journey.
How much is the cost of living in USA?
Living in the USA comes with a range of expenses that can vary widely depending on your circumstances. If you are living alone, your costs will likely look different compared to sharing expenses with a partner or family. Below is a breakdown to give you a clearer idea of what to expect:
|
Expenses |
Average monthly cost for a single person |
Average monthly cost for couple without children |
| Accommodation | $1,300 | $1,600 |
| Utilities | $220 | $280 |
| Food and Groceries | $450 | $550 |
| Transportation | $220 | $300 |
| Clothing and Shoes | $160 | $220 |
| Leisure and Entertainment | $250 | $300 |
For example, if you live alone in a major city such as New York or San Francisco, rent may consume a significant chunk of your budget, particularly for a one-bedroom apartment. Couples, on the other hand, find it easier to manage these expenses because they can split the rent, utilities, and groceries.
Furthermore, it’s worth noting that these figures are only averages and might vary greatly based on your area and lifestyle preferences. Smaller towns and suburbs offer reduced rent and grocery expenditures, whereas metropolitan centers have greater living costs but better access to services and public transportation.
Cost of living in USA for a family of four
The total cost of living in the USA as a family of four can vary significantly based on where you live, your lifestyle, and specific family needs. Below is a breakdown of typical expenses to give you a better idea.
Accommodation
Housing is often the largest expense for families. On average, the rent for a two-bedroom apartment is around $1,500 per month in most areas.
However, if you’re considering living in major cities like New York or San Francisco, you may face significantly higher costs, with rents often exceeding $3,000 per month for similar accommodations.
Utilities
The average monthly utility bill for a family of four, including electricity, water, gas, and trash removal, is approximately $250 per month.
Food and groceries
Groceries are another substantial expense, averaging around $900 per month for a family of four. Families who prepare meals at home and shop smartly at wholesale or budget-friendly stores save money better.
Transportation
Transportation costs in the USA depend largely on where you live and your family’s commuting needs. In areas without public transit, owning a car is essential, costing $400 to $600 per month for fuel, insurance, and maintenance. Urban families with access to reliable public transportation can save on car expenses but should budget for transit passes or occasional ride-sharing services.
Healthcare
Healthcare is a significant expense in the USA. For a family of four, annual healthcare costs average around $12,000 per year. This can vary depending on the insurance plan, and any specific health conditions or medical needs within the family.
Other expenses
Additional costs, such as clothing, entertainment, etc. typically range between $1,200 and $1,500 per month. But, in actuality, these expenses will vary widely depending on your lifestyle.
Estimated total monthly costs
When you combine all these categories, the total monthly cost for a family of four in the USA typically falls between $2,800 and $6,000, depending on the location and lifestyle choices.
Cost of living in USA as a family of two/ shared by two individuals
For couples or two individuals sharing expenses, costs can be more manageable. Here’s a breakdown of typical monthly expenses:
-
Accommodation
A one-bedroom apartment typically costs between $1,300 and $1,600 monthly, depending on the location. Sharing a two-bedroom apartment can reduce costs to $800–$1,000 per person.
-
Utilities
Utilities, such as electricity, gas, water, and trash, typically cost between $220 and $280 per month. However, the cost of utilities can vary depending on several key factors.
-
Food
The average family of four spends about $500 to $800 per month on groceries. However, the cost of food can vary depending on the specific needs of the family.
-
Transportation
Transportation costs can vary greatly depending on the location and whether or not the family owns a car. However, public transit or sharing a vehicle typically costs $300–$400 per month.
-
Entertainment and other costs
Sharing costs for things like internet, dining out, and entertainment can help each person save around $200 to $300 a month, making it easier to manage budgets without cutting back on fun.
Total monthly cost (Shared): $2,500–$3,500 combined
Cost of living in USA for Indian students
Indian students often face varying expenses based on their city, university, and lifestyle. However, here is a detailed breakdown to give you a fair idea.
Accommodation
- On-campus housing: Typically costs between $10,500 and $12,000 annually
- Off-campus housing: Sharing an apartment can cost between $400 and $500 monthly
Food
Monthly grocery expenses typically range from $300 to $400 for Indian students.
Transportation
Most universities offer discounted transit passes for students. Considering this aspect, public transportation costs between $120 and $250 monthly.
Textbooks and supplies
Textbooks and study materials typically cost $600 to $1,200 annually. However, you can rent or purchase digital books to save money further.
Healthcare
Student health insurance costs between $600 and $1,200 annually, depending on the university’s policies.
Other expenses
Entertainment, clothing, and occasional travel can add $600 to $1,200 annually to a student’s overall budget.
Average rent in USA on a regional basis
Rental prices in the USA can vary significantly based on the region, city, and type of apartment. Below is a breakdown of average rents in different regions in the United States.
| Region/City | Median rent for a 1-bedroom apartment | Median rent for a 2-bedroom apartment |
| San Francisco, CA | $3,200 | $4,500 |
| New York City, NY | $3,000 | $4,200 |
| Boston, MA | $2,700 | $3,800 |
| Chicago, IL | $1,800 | $2,500 |
| Austin, TX | $1,600 | $2,200 |
| Atlanta, GA | $1,500 | $2,000 |
| Denver, CO | $1,700 | $2,400 |
| Seattle, WA | $2,100 | $3,000 |
| Minneapolis, MN | $1,400 | $1,900 |
| Houston, TX | $1,200 | $1,800 |
Please note: The rent figures listed above are approximate and subject to change based on market conditions.
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Key factors influencing living costs in USA
Here are some of the key factors that influence living costs in the United States.
City or state
Living in major cities like San Francisco or New York is significantly costlier than smaller towns or suburban areas.
Lifestyle choices
Frequent dining out, premium services, or opting for luxurious accommodations can lead to higher expenses.
Housing type
On-campus housing is convenient but often more expensive as compared to shared off-campus apartments. Choice of accommodations can thus significantly impact the budget.
Transportation
Cities with reliable public transit networks allow students to save money on commuting compared to areas where public transport isn’t robust and owning a car is essential.
Key tips to save money for Indian students
Here are a few expert tips by MSM Unify consultants for Indian students to save money while studying in the US.
Apply for scholarships
Many universities and organizations offer scholarships that can help reduce tuition and living costs significantly in the US.
Part-time work
Try to work part-time on campus or in internships for additional income and alleviating your financial stress.
Shared housing
Opt for shared housing, wherein roommates can help split rent and utility costs, making housing more affordable.
Cook meals at home
Cooking at home is significantly cheaper than dining out regularly, so please hone your basic cooking skills!
Student discounts
Many businesses offer discounts for students, including on transportation, groceries, and entertainment. Leverage these discounts!
Track expenses
Keeping a monthly budget can help avoid unnecessary spending and ensure financial stability throughout your study abroad experience in the US.
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Conclusion
While the cost of living in the USA can seem high, proper planning and budgeting make it manageable for students and families. By choosing affordable cities, leveraging scholarships, and implementing cost-saving strategies, you can reduce your financial burden significantly while pursuing your American dream.
Whether you are studying or relocating for a job, understanding these living expenses is key to making informed decisions and reducing financial stress.
If you have further questions or apprehensions regrading living in the US or studying abroad, feel free to connect with MSM Unify counselors.
FAQs
1. What is the average cost of living in the USA per month for Indian students?
Indian students typically spend $1,200 to $1,900 monthly in the US. However, these expenses may significantly vary depending on their lifestyle and location.
2. Which cities are the most affordable in the USA?
Cities like Hickory (NC), Youngstown (OH), and Green Bay (WI) are known for their low living costs and are popularly chosen by international students who are a bit tight on their budgets.
3. How can Indian students save money in the USA?
Students can save money in the US by applying for scholarships, working part-time, sharing housing, cooking at home, and using student discounts.
4. Is the cost of living in the USA higher than in India?
Yes, living costs in the USA are much higher than in India due to a superior lifestyle and top-notch education. The living expenses are typically higher, in terms of housing, healthcare, and food.
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