The Cost of Living in the United States: Here’s What You Need to Know

3. Grocery Prices: Everyday Necessities Are Climbing

Grocery bills in some countries don't take much. But in the United States, it is a large part of your monthly expenses, especially if you live with your family. Here are the typical 2025 US prices for common items:

Although staple foods remain the same, the prices of meat, dairy, and fresh produce continue to increase. You will notice this more if you are living in urban areas with high demand.

4. Dining Out: A Luxury Or A Norm?

In the past, dining out in the US was very common and didn't cost too much. But currently, the cost adds up quickly:

5. Transportation Costs: Public vs Private

The amount of money you will spend on transportation costs depends on many things. Either the type of life you are living, or your location, where you live in the United States. Like you won't expect your transport expenses to be low when you don't use the buses. 

Public transportation

Cities like New York and Chicago have better public transit systems. However, in many areas, owning a car is important.

Vehicle ownership. 

6. Childcare And Education

If you have a child or children in the US, be prepared to spend more than those who don't. Childcare and education are among the most expensive costs for families:

7. Clothing and Personal Items

If you are new to the United States, the price of clothes might be surprising.  

However, when you stay there for some time, clothing prices in the US are relatively reasonable. Especially with the availability of mass-market fashion.

8. Entertainment And Leisure

There are different things you can do for leisure. You don't need to play tennis or watch movies. Or leisure to you, can be as simple as reading a book.  But if you decide to spend a good portion of your income on leisure, this is how they can quickly add up:

9. Salaries And Financing

Compared to many countries, it is easier to receive higher salaries in America. According to current data:

While wages appear high, they often don't keep up with rising housing and childcare costs. The average American household spends around $77,280 annually. On the other hand, consumer expenditures increased 5.9% year-over-year.

Comparing The US To Other Countries

To put things in perspective, consider the following international comparisons:

Regional Variations Across the U.S.

It's important to remember that the cost of living varies  by location:

How to Save With the High Cost of Living

Here is how you can save even with the high cost of living in the United States. 

Rethink your housing strategy.

The average rent for a one-bedroom apartment in the United States is now hitting $1,550. Two-bedroom units are now exceeding $1,900. Housing has become the largest monthly expense, so to survive these costs, rethink where or how you live:

Cut the invisible costs: utilities and subscriptions.

While rent grabs the headlines, utility bills and subscription fees can quietly drain your finances. According to RentCafe, average utility costs range from $370 to $400 a month depending on the region. Including electricity, gas, water, and internet. So, consider canceling unused subscriptions or switching to energy-efficient appliances.

Grocery prices and meal planning.

Grocery costs have increased in the last three years. If you've a family of four, you can spend upwards of $1,000 to $1,200 a month on food. Even if you're not eating out with your family. To save cost, you can embrace weekly meal planning,  freezing meats purchased,  bulk buying, and discount grocers like Aldi or regional chains. 

Healthcare costs and preventive thinking. 

Healthcare remains one of the most unpredictable expenses. The average monthly premium for a silver-tier health plan under the Affordable Care Act is now $560. 

To survive, you opt for high-deductible health plans paired with Health Savings Accounts (HSAs). It has tax advantages. Another option is to go to community health centers and low-cost clinics for non-emergency care. 

Transportation and mobility adjustments.

Transportation, particularly if you own car, can be expensive. The average monthly cost of owning a car now exceeds $900 in many states, according to AAA data. Including loan payments, gas, insurance, and maintenance. So, taking public transit, cycling, or walking to reduce your reliance on a personal car can save you thousands per year. 

Rethink your housing strategy.

The average rent for a one-bedroom apartment in the United States is now hitting $1,550. Two-bedroom units are now exceeding $1,900. Housing has become the largest monthly expense, so to survive these costs, rethink where or how you live:

Sending money to love ones at the best rate. 

If you move to the U.S., you may still need to support your family back home. Sending money across borders can be costly. Many banks charge hidden fees and offer poor exchange rates.

You can simply use CadRemit.com  to send and receive Naira, USD, EUR, and CAD at better rates than most banks or traditional services. It is fast, secure, and easy to use. 

Make every dollar count.

In 2025, financial survival is about making each dollar stretch as far as possible. You can have a strict budget, track every expense to know where leaks are happening. Even small adjustments can make a difference. Like brewing coffee at home, shopping with a list, or negotiating insurance premiums. All can lead to substantial annual savings.

Is the American Dream Affordable in 2025?

The United States remains the land of opportunities for dreamers, but at a growing cost. With rising cost of housing, rent, childcare, and food prices, all creating a tight financial squeeze, especially if you're an average earner. So, financial planning is more important than ever if you're considering a move to or you already live in the US.