Living Expenses in USA - How to Budget as an International Student

Thousands of students go abroad every year to fulfill their academic dreams. However, unless budgeted, living expenses in the USA can get out of hand. Hence, it is important to create a budget before you pack your bags for the States.

However, budgeting depends on many factors apart from just the nation you are moving to. This blog explores those factors and helps you learn how to live in the USA, without going broke in a few months.

Overall Living Expenses in the USA as an Indian Student

As an International student, you will have a lot of living expenses in America. Hence, it is better to plan.

Here is a breakdown of the overall cost:

**Please note: The prices might change due to inflation, and currency exchange fluctuation. 

Living Cost in the US per month for Indian Students 

The Living cost in the US depends on your location and the type of accommodation you are availing of.  However, accommodation in the USA has been one of the major concerns for most international students.

Below are the types of accommodations and locations, based on which, prices are set. 

Key Considerations 

• In bigger cities, on-campus accommodation is more affordable. Hence, those who are worried about the living cost in the US per month can opt to stay on-campus. 
• Off-campus residence is mostly dependent on the neighborhood you prefer to stay in. It also varies on the number of roommates you decide to share your apartment with. 
• Smaller cities like Atlanta, and Pittsburgh cost less in terms of accommodation. You can choose universities based out of these locations for affordable living. 

Food & Grocery Expenses in the USA 

The food expenses in the USA depend more on your eating habits than the area. If you are eating out every day, your meal cost will increase as compared to cooking. 

Below is a complete breakdown of the food expenditure in the USA:

Grocery Expenses:

• Average Range: The cost ranges between $200-$400 per month. 
• Factors Influencing the Cost: The primary factors on which the hike in cost depends are the location, dietary preferences, and shopping habits. 
• Cost-Saving Tips: Shopping at supermarkets like Walmart, Target, and Costco will be more affordable than smaller specialty stores. 

Dining Out:

• Per Meal Cost: Dining out can cost you somewhere between $10 to $50, depending on the type of restaurant, cuisine, and location you select. 
• Impact on Budget: Considering that the living expenses in the US are high, frequent dining out can significantly increase your monthly expenditure. 

On-Campus Meal Plans:

• Average Cost: The approximate cost of an on-campus meal is $250 per month. 
• Considerations: On-campus meal plans are convenient. However, some of these meal plans are more expensive than preparing a meal plan.

Overall Monthly Food Expenses:

• Estimated Range: If you combine groceries, and occasional dining out, your monthly expenditure will range between $400 and $600 per month. 

Tips to Manage Food Expenses:

• Cook at Home: Prepare your meals at home! It is generally more cost-effective, and healthy for your overall health. 
• Plan Meals: Once you create a meal plan, it will help you reduce unnecessary purchases, and make you stay healthy. 
• Shop Smart: If you want to save, you must learn to shop smart. Look for discounts, choose drugstore and local brands, and buy in bulk— they will help you in your savings. 
• Limit Dining Out: Don't go out, unless there's an occasion. This will help you save a lot of money and help you stay fit. 

If you adopt these strategies, you can effectively manage food and grocery expenses while studying in the USA.

Transportation Cost for International Students in the USA

Transporting efficiently is a crucial part of student life. Hence, transportation expenses can vary depending on which city you are living in and your mode of regular transport. 

Below is a breakdown of the list of common transportation, through which generally people from:

Common Ways to Travel in the USA

Students, and especially the international ones use various modes of transport, depending on their budget and location. 

Some of these transports may include:

• Public Transit: Most cities like New York City, and Boston offer subways, trains, and buses. These modes of transportation offer students discounts, which you can avail.
• Ridesharing Services: You can use app cabs like Uber and Lyft. However, using them regularly can cause a hole in your pocket. 
• Biking and Walking: In student-friendly cities like Chicago and San Diego, cycling or walking can be cost-effective and healthy for your body. 
• Car Rentals & Ownership: You can also opt for a rented car, especially in those cities, where commuting from one place to the other is fairly difficult. 

Estimated Transportation Expenses

The cost of transportation depends on the city, with some areas having extensive public transit systems while others rely more on personal vehicles. 

Here’s a look at the living in the USA cost for transportation in different cities:

Health Insurance Cost in the USA

Health insurance is mandatory in the USA. However, it can be expensive, making insurance an important investment for international students. Here is a complete breakdown of the coverage options to tackle living expenses in the US. 

Typical Cost of Health Insurance for Students

A health insurance's price varies on universities, state, and their coverage level. However, on average, students are expected to pay somewhere between $500 to $2,500 per year for a basic plan. Some universities require students to enroll in their health plans, while others don't have such rules, as long as it matches their plan criteria. 

What Should be Included in a Student Health Plan?

A basic student health plan must cover the following:

• Routine checkups and doctor’s visits
• Emergency visits and stay in the hospitals
• Prescriptions medicines
• Support and counseling for mental health well-being
• Preventive care including vaccinations
• Diagnostic procedures such as Lab tests

Please Note: The coverage details mentioned above might vary from one plan to the other. Hence, read the offer documents before purchasing a plan.

Health Insurance Options & Plans for Students

Hidden Costs You Must Be Aware About

Apart from the essential expenses, living in the USA can cost you more. Hence to ensure you don’t end up overspending, here are some of the hidden costs that you mustn’t overlook. 

• Stationeries & Supplies: Additional stationery might cost you $100 - $450 per semester. The price can go up if you are purchasing any kind of special engineering tools. 
• Out-of-Pocket Expenses: Apart from insurance, you might need to pay additionally during your doctor’s visit or while you visit the emergency room. These visits can cost you $200 - $5000. 
• Visa Renewal Charges: F1 visa renewal will charge you $185 - $850+. Please remember that you don't have to pay a SEVIS fee unless it's terminated. 

Smart Budgeting Tips for Students Living in the USA

You can manage your finances and save while studying abroad. All you have to do is take the right approach, and you have to budget properly. 

Here are the key steps to prepare a smart budget:

• Recognize Fixed Expenses: Recognize the expenses that are non-negotiable like tuition, rent, groceries, and transport. Calculate them, and determine your monthly expenditure.
• Monitor Variable Costs: Track the expenses that fluctuate, like food, entertainment, and transportation, and find out the reasons. Once you find the reason, keep an eye on these expenses and adjust what you spend.
• Establish a Savings Plan: Keep aside a portion of your income for emergencies and future goals. A small amount every month will help you build financial security over time.

A Smart Budget Plan Example

FAQs

• How Do International Students Pay for Living Expenses in the USA?

Most international students pay for their living expenses in the USA through education loans. Without an education loan, paying for living expenses in the USA is challenging to sustain. Hence, loans and financial aid are the best way to pay for expenses.

• How much money does an International student need to study in the USA?

You will need $10,000 to $55,000 annually to sustain comfortably in the USA. This includes tuition fees, accommodation, food, transportation and more. The expenses vary according to your program, city, and kind of life you are living. 

• Can Someone Work Part-time to sustain in the USA?

Yes, with an F1 visa, you can work part-time in the USA. However, you can only work 20 hours per week during your semester. A part-time job will pay you $8-$15 per hour, which adds up to $160 - $300 per week. 

• Is Living in the USA expensive for International students?

Without a stable financial backup, living in the USA can be difficult. Therefore, a strong financial backup like aid and education loan is advisable for students. Moreover, if you work part-time, living in the USA will be fairly easy for you.

• Is Public Transportation Easily Accessible in the USA?

Yes, if you are living in big cities like New York or Boston, finding public transportation will not be a difficult task for you. However, if you are living in smaller cities, finding public transport might be difficult, so you should consider leasing a car. Your monthly transportation will range between $50 - $120 (based on your city).

Parting Thoughts 

If you have clear knowledge and a plan, your living expenses in the USA will be within your preferred budget. All you need is financial backing, understanding the difference between necessity and want, and the value of savings.