When you plan to settle, study or travel in America, look at the cost of living. Although there’s a tendency to lump the whole continent together under one banner, the economic reality differs greatly between North and South America. Housing, transport and food budgets, as well as consumer habits, vary considerably from one country to the next. Here’s an overview of the main trends and a few concrete examples to help you plan your stay.
North America: a relatively high cost of living
In North America, the overall standard of living is comparable to that of Western Europe. However, there are disparities from one country to another:
- United States: While the standard of living is generally high (especially in major cities like New York, San Francisco and Los Angeles), price differences can be considerable, depending on the state and the neighborhood. The price of a meal in a mid-range restaurant hovers around €25 to €30. On the other hand, a monthly transportation pass can easily exceed €100 in a metropolis like New York.
- Canada : The cost of living is much the same as in the U.S., with regional differences just as pronounced. In Toronto, a monthly transit pass costs around €150, compared with €65 in Montreal. Rents and the price of consumer goods are generally high, but the quality of life is reputedly excellent.
- Mexico : Mexico boasts a much lower cost of living than its neighbors. A meal in a mid-range restaurant costs around €14 at most. A bus ticket in Mexico City costs just €0.10. The differences in purchasing power between Mexico and countries further north are therefore very marked. This can be a decisive factor for you, whether you’re planning to travel there or expatriate.
South America: more affordable rates overall
Unlike North America, South America generally offers a lower cost of living. However, the situation also varies from country to country:
- Public transport: Monthly season ticket prices vary considerably from one city to another in South America. In Rio de Janeiro (Brazil), for example, you can expect to pay between €30 and €70, depending on the time of year. Buenos Aires (Argentina), on the other hand, offers much lower prices, ranging from €5 to €20. Santiago (Chile) offers prices from €30 to €50. Last but not least, San José (Costa Rica) has an average price range of €14 to €32. While these prices may vary according to season or local politics, they are generally more affordable than those charged in most major North American or European cities.
- Eating out : Eating out is also cheaper in South America. In a mid-range establishment, the price per person is estimated at around €5 in Brazil, €6 in Chile, and €10 in Costa Rica or Uruguay (with variations as low as €3 in Argentina and as high as €19 in Uruguay).
- Lifestyle: Housing, energy, leisure and consumer goods are also often more affordable than in North America, making it an attractive destination for those on a tight budget. However, it’s important to find out exactly which city or region you’re planning to visit. Indeed, the cost of living in São Paulo (Brazil) or Montevideo (Uruguay) is not the same as in rural areas or less touristy regions.
Tips for managing your budget
- Compare cities: Before you decide where to set down your suitcases, compare accommodation, transport and food costs in different cities. The differences can be significant within a single country.
- Take the local lifestyle into account: Even if a country is reputed to be less expensive, a “Western” lifestyle can quickly add up. Try to adapt to local consumer habits.
- Take public transport: In many Latin American countries, buses are very affordable. Get organized to limit your expenses and live like a local.
- Don’t forget international health insurance: The cost of medical care can be very high, especially in North America. Prevention is better than cure, especially if you’re planning a long stay or a road-trip lasting several months.
The cost of living in the Americas varies widely. In North America, with the exception of Mexico, prices are often high, close to or even higher than in Europe. South America, on the other hand, is more affordable, whether for accommodation, transport or food. Before you leave, draw up a detailed budget forecast, taking into account your priorities and lifestyle. This will enable you to take full advantage of the cultural and natural riches of the American continent. You won’t have to worry about unpleasant financial surprises. Enjoy your trip!
