What is the Average Cost of Living in USA 2025?

We understand that moving to the USA for higher studies sounds exciting, but have you ever considered the cost of living in a new, likely expensive environment? We mention this because financial stress can distract students from academic focus, and we want to help you avoid that. Understanding the cost of living will help you budget for essentials like food and rent, reducing financial stress while studying in the US. 

In this guide, we will explore the major components of the cost of living in USA and provide tips to manage expenses while studying.

Major Components of Cost of Living in USA for Students

If you want to know the answer to “What is the average living expenses in USA?”, understanding each component of the living expenses in USA is necessary. Below is the breakdown of various aspects of the cost of living:

Housing Costs

Housing is often considered a major cost for students. While the costs vary from location to location, here’s an overview of the average housing cost for international students:

Category	Estimated Average Cost/Year	Key Information
On-Campus Dorms	Around $12,000	The on-campus housing costs are expensive because they come with perks like meals and no separate utility bills.
Off-Campus Housing	Around $7,500	The off-campus housing has two major options: apartments and homestay. Apartments are quite expensive while homestays are much cheaper.

Know More: Cheapest State to Live in USA

Food and Groceries

If you are wondering, ‘How much does a person spend on groceries in the US?’, the cost depends on several factors, such as location and the number of people in a household. For example, in a less expensive city like Manchester, the average cost of groceries is $183 per month for a single person. These prices are for groceries only; the cost for meals eaten out is separate. 

Below we will provide an overview of the average costs for groceries and meals eaten out.

Category	Average Cost
Grocery Costs	The average cost for groceries in the US is around $336 per month ($4,000/year) for a single person. This includes the costs of eggs, dairy, meat, bread, and other staple items.
Meals eaten out	The average cost for meals eaten out in the US is around $300 per month ($3,600/year) for a single person.

Tips for Reducing Food and Grocery Bills While Studying in the US

• Make a budget. Allocate funds to grocery shopping and then decide on what to buy for the month. This will help reduce your overall grocery costs.
• Make use of student discounts while eating out. Local restaurants and major food giants offer discounts to attract students to their businesses. To avail of these discounts, all you need to do is to show your student ID card.
• Get your ISIC card. It is an international student card that offers discounts on various products and services, including discounts on food and dining.

Transportation Costs

Transportation costs are one of the major contributors to the overall cost of living. According to the latest findings, transportation costs are the second largest expenditure category in the US after housing costs. Here’s a detailed breakdown of the costs of various public transportation modes:

Category	Average Cost
Commuter Rail	It is the most expensive mode of transportation in the US. The monthly pass costs around $137.
Bus	It is the least expensive mode of transportation in the US. The monthly bus pass costs around $55.
Trolley bus	It costs around $95 per month.
Taxi ride	According to 2019 findings, the taxi ride in the US costs around $36.

Tips for Reducing Transportation Costs in the US

• Look for student discounts on public transportation, especially in the more advanced cities. For example, in Los Angeles, the LA Metro offers international students studying in a college or university discounted prices on buses and metro. You will only need to show proof of your student status for eligibility. Once eligible, you can enjoy a 50% discount on bus and metro rides in LA.
• Share rides with your friends or classmates, which can significantly reduce the overall costs of transportation. Use apps like Splt or Lyft Line to find carpooling services.
• If you want to use public transportation on a daily basis, consider purchasing a monthly or a semester-long public transit pass. You will significantly save money compared to paying for individual rides.

Healthcare Costs

On a student visa (F-1 or J-1), the United States mandates international students to have health insurance while studying in the US. There are two major health insurance options: university-sponsored health insurance and private health insurance. Here’s a breakdown of the costs of each type of insurance:

Category	Average Cost
University-sponsored health insurance plans	Can range from $1,000 – $3,000 annually.
Private Insurance Plans	Can range from $600 – $2,000 annually.

Tips to Save on Health Insurance Plans

• Shop for different health insurance plans. This way you can compare plans and pick the one that fits your needs and budget.
• If you want to save money on healthcare, focus on essential healthcare coverage and not on extras. Choose plans that focus on basic health coverage services, such as doctor visits, emergency care, and hospitalization. Avoid add-ons like dental coverage, vision, and others.
• If you consider yourself healthy and don’t require frequent medical care, consider a High-Deductible Health Plan. This plan has lower premiums, which helps in saving money on overall health insurance costs. 

Sample Monthly Budget for International Students While Studying in the USA

Expense	Cost (Monthly)
Housing	$1,500
Food and Groceries	$318
Transportation	$1,000
Health Insurance	$270
Total Expected Cost of Living in the US: Around $3,000 per month

The cost of living mentioned above is just an estimate. It can vary depending on the state and city where you choose to study in USA.

Comparison: Cost of Living in USA vs Other Countries

Country	Average Monthly Cost of Living	Cities with High Living Costs	Cities with Lower Living Costs
USA	$1,000 – $3,000 for a single person	New York, San Francisco, and LA	Kansas City and Austin
UK	1,700 pounds – 2,500 pounds for a single person	London, Cambridge, and Oxford	Manchester and Birmingham
Australia	AUD 4,000 for a single person	Sydney and Melbourne	Adelaide and Perth
Canada	CAD 2,500 for a single person	Toronto, Vancouver, and Montreal	Ottawa and Halifax
Singapore	SGD 3,000 – SGD 4,000 for a single person	City Center	Suburban areas

Conclusion

The average cost of living in USA for international students ranges from $1,000 to $3,000 per month, covering rent, food, groceries, transportation, and health insurance. With proper planning and budgeting, you can manage your daily expenses effectively without compromising on your overall student experience.

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