The United States is one of the most popular destinations for people worldwide.
This country offers seemingly endless opportunities for people seeking work, an adrenaline rush, or the start of a new chapter. There are hundreds of small towns or bustling metropolises to choose from.
While the U.S. is one of the top destinations for expats, most people’s primary concern is how to afford to live the American dream.
Below is a guide for expats who want to live in one of the most sought-after locations.
Accommodation
According to RentCafe, in April 2025, the average monthly rental in America is around $1 800. This average can vary depending on where you live, how big the unit is, and whether it is furnished.
Expect to spend around 30 percent of your net income on housing.
Rentals in the suburbs are typically cheaper than in the cities, but the trade-off is transportation is comparatively competitively priced in turban areas.
Groceries
Food and groceries can vary significantly between states, with big cities and other urban areas being more expensive. Costs will also be based on your dietary choices. For example, organic or specialty foods will be more expensive.
Larger families will have higher food bills, but you can keep those costs down by using coupons or buying in bulk.
Transportation
Car ownership in the United States is not necessarily essential.
Many cities have well-developed public transportation systems, including trains, subways, and buses. Suburban and rural areas offer limited options but rideshare apps can help.
Buying a car can help in suburban areas but you will need to factor in insurance, fuel, maintenance, and repair costs. Gas prices fluctuate, but America enjoys more affordable gas prices than other Western countries.
Taxes
The taxation system is often difficult to understand, especially in a new country.
Foreign nationals may be subject to one of two main tax systems, depending on what their residency status is classified as.
As a general rule, foreigners are classified as either resident or non-resident aliens of America. Classification as a non-resident may come with significant tax advantages – but, in most cases, those vary from year to year, so it is essential to review your tax liabilities annually.
Resident aliens are typically taxed on their global income, regardless of the source. Tax rates are determined in the same manner as for citizens. Non-resident aliens are normally only taxed on income derived from American sources – such as a salary.
These are only preliminary tax tips; you should consult a tax professional to manage your account effectively.
Education
When it comes to the cost of education, it once again varies.
Public schooling is generally free for residents, while private and international school tuition can be substantial.
The average annual cost of higher education in the US, including fees and living expenses often runs into multiple thousands of dollars – with private university tuition averaging at almost $40 000 a year, according to The Education Data Initiative.
When budgeting for your future cost of living in the USA, list your family’s educational requirements.
Health Insurance
No matter where you choose to relocate to in America, having comprehensive health insurance is a must.
Insured expats have access to world-class healthcare, those with no insurance will struggle to get adequate care, get slapped with massive bills afterwards, or both!
Although health insurance is not a legal requirement, it can give you financial protection and peace of mind.
Entertainment
As with most things in this guide, the cost of entertainment in America will depend on your location.
America offers a vast array of entertainment options with an impressively high level of living available. Lifestyle opportunities for expats are aplenty!
From free parks to something more high-end – America has everything you could ever want. There are live music concerts, festivals, sports events, and much more!
No matter where you are in America, there is always fun to be had. Be sure to set aside a reasonable budget for exploring your new surroundings.
Currency Calculations
The currency of the USA is the American Dollar or USD.
When converting your money into USD, make sure that you get the best exchange rate by using a converter that offers a mid-market exchange rate. To manage your cost of living in America, focus on smart budgeting and currency exchange strategies.
To End
To get the most from your experience in America, budget wisely and factor in unexpected costs.
Embrace America’s diverse culture to make the most of your experience there. Joining an expat group can help you find and make new friends and build a support system.
Prioritize cost-effective strategies for living such as energy efficiency. Follow the tips in the above guide to help ease you into living in the homeland of one of the world’s strongest currencies.
