Inflation and cost of living
The cost of living for any American is impacted by inflation. Inflation is a decrease in the purchasing power of our money, as reflected in a general increase in the prices of goods and services.
Inflation can happen when prices increase due to increased production costs like raw materials and wages or an increase in demand for products and services, which means consumers are willing to pay more for them.
At the time of writing, inflation is around 7%. That means a pencil that cost $1 in 2020 would cost $1.07 today. That’s inflation at work.
Common monthly expenses in the USA
These are some common monthly expenses in America and their average costs:
Housing: $1,784
Utilities: $300
Transportation: $819
Food: $610
Food Away From Home: $198
Healthcare: $431
Health Insurance: $306
Entertainment: $243
Gas: $131
Clothing: $120
Personal Care Products and Services: $54
Education: $106
Total: $5,172
Don’t be alarmed by that number! Remember, these are averages. And some people won’t have all of these expenses. If you live in a walkable city or one with a robust public transit system, you won’t have any gas expenses, and your transportation expenses will be much lower, maybe even $0, if you walk and cycle a lot.
A combined $808 per month for food is high unless you’re a family with a few members. A single person wouldn’t need to spend nearly that much. Some employers pay all or part of their employee’s health insurance premiums, and if you don’t have children and aren’t in school yourself, you won’t have any educational expenses.
Upwardli can help
For some, the cost of living in the US is a relief! It’s much lower than it was at home. And for some, it’s an enormous change, much more costly than at home or with many new expenses. America largely does not subsidize things like health care, child care, or education as many countries do.
Whatever your situation, Upwardli can help you find the financial tools you need to succeed in the US, including credit cards, apps, savings accounts, and personal loans.
With Upwardli, you’ll get pre-approved instantly - no credit check or deposit required! Each account includes an unsecured line of credit designed to build credit fast. We report your progress to the credit bureaus to help establish your credit history.
