Your all-in-one guide to cost of living in the USA for South Africans

The USA is a huge country with so many opportunities - it’s no wonder so many people choose to either study, move temporarily, or relocate permanently there.

However, as one of the biggest, most developed countries in the world, what does it cost to actually live there?

In this guide, we’re going to take a look at the cost of living in the USA, whether you’re choosing to visit short term or move over there from South Africa permanently.

We’ll cover an overview of the costs of living in the USA, including how the prices in the USA compare to South Africa.

Plus, if you want to manage your international money transfers, make sure you keep in mind Wise, a bank alternative to reduce international transfer costs¹ for international money transfers to South Africa from the USA.

Learn more about Wise

How expensive is the USA in comparison to South Africa?

The USA is much more expensive than South Africa. The cost of groceries is 63.5% higher in the USA than in South Africa, rent is 76.1% higher, and general consumer prices (not including rent) are 54.8% higher.

The currency in the USA

The currency of the USA is the American Dollar (USD).

When you’re making transfers or converting your money into USD, you can make sure you’re getting the best exchange rate by using a converter that uses the mid-market exchange rate.

You can find out the exact worth of your money (or more specifically, ZAR) by using our online currency converter.

Get the mid-market rate for international money transfers from the USA to South Africa with Wise

South Africans living in the USA can save money¹ by using Wise, a bank alternative, to make international payments to South Africa.

When sending money to South Africa from the USA with Wise, you can reduce international transfer costs¹.

The mid-market exchange rate is the rate that banks use to transfer money between them.

Wise uses the mid-market exchange rate along with a small fee mentioned upfront for all transfers. This means you’ll likely be getting better rates for international money transfers, and you’ll know upfront how much each transaction will cost you¹.

Using Wise in the USA, you can send money to South Africa, and also hold and receive money in 40+ currencies³.

Join Wise!

Cost of living in the USA vs. South Africa

The cost of living varies across the USA, however, New York is the 6th most expensive city in the world, according to Mercer’s cost of living statistics. Los Angeles, the second biggest city in the USA, ranks as the 11th most expensive city in the world. In comparison to South Africa, Cape Town ranks in the 194th space⁶. So, the USA is much more expensive…

Rental costs in the USA

Let’s take a look at the rental costs in two of the biggest cities in the USA: New York and Los Angeles.

Cost of groceries in the USA

Transport costs in the USA

Public transport within cities in the USA is very good, from buses and underground services to taxis and trams, it’s easy to get around most cities. Although trains and airports can make it easy to move around the country, some more rural areas are not as well connected and will require a car.

Study costs in the USA

Getting into a university in the USA is a dream for many students that want to study internationally. There are a whole host of world-renowned universities in the USA, with the most well-known and well-ranked being Stanford University, Massachusetts Institute of Technology (MIT), Harvard University, and Princeton University⁹.

These universities are known as Ivy League schools and are not only extremely difficult to get into, but fees to attend can be very expensive. For example, although each degree has its own cost, the average cost for an undergraduate degree at Stanford is $18,491¹⁰.

What is the average salary in the USA?

The average salary in the USA is $59,428 in 2023¹¹.

Let’s take a look at a selection of jobs and their average salaries in New York and Los Angeles. However, before taking a look, it’s important to note that these are the two biggest cities in the USA and in small cities, towns, and rural areas, the average salaries for positions are likely to be much lower.

What about healthcare costs in the USA?

Healthcare in the USA is very, very expensive. In the majority of cases, you will need to pay for your own treatment, unless you get free or subsidized healthcare, either because of your insurance or you’re eligible for the US government health plan (Medicare or Medicaid).

Without insurance, for example, it can cost between $300-$600 just to see a doctor¹⁴.

So, make sure you’re insured before heading out there, or that a job offer you’re thinking of taking in the USA covers your insurance.

The USA has a lot of exciting opportunities, especially if you’re looking to take a job in the country - that can provide security and financial stability whilst exploring the wonderful country. However, it is very expensive, especially in big cities. So, you need to be prepared before heading over there, whether on a short-term or long-term basis.

Plus, remember, with Wise, you can save money when sending money to South Africa from the USA¹.

Join Wise!

Sources:

1. Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up-to-date pricing and fee information.
2. Eligibility is subject to verification of customer identity. Wise may request additional documents to verify a customer's identity.
3. Please note that certain products or features may not be available in all regions.
4. Please visit www.wise.com to check for availability and learn more about our offerings.
5. Cost of living comparison - Numbeo
6. Cost of Living City Ranking - Mercer
7. Cost of living in New York - Numbeo
8. Cost of living in Los Angeles - Numbeo
9. University Ranking - MastersPortal
10. Stanford University Fees - Upgradabroad
11. Forbes - Average Salary by State
12. New York Salaries - Teleport
13. Los Angeles Salaries - Teleport
14. The Cost of a Doctor Visit Without Insurance - Talk to Mira

*Sources last checked on Thursday 23rd November 2023.