Saving money in the US as an expat

The costs of living globally have been rising in the past few years. US government statistics show that the US consumer price index – which measures costs of everyday items – rose by 3% in the year to September 2025. With cost rises across groceries, energy and gasoline in particular, the environment can be challenging for many US residents. If you’re an expat in the US you’ll need smart financial planning ideas to make your money go further.

This guide walks through ideas for US based expats to save money, from government support, to smart shopping, and ways to manage your international finances for less, with providers like Wise.

Understanding the cost of living in the US

The cost of living in the US does vary depending on factors like where in the US you’re based, and whether or not you’re living in a major city, town or rural area. Here are a few things to consider when you’re planning your US finances:

Housing: Housing costs in US cities can be very high, with large regional differences. Large cities have higher prices compared to smaller towns and more rural areas. The National Association of Realtors offers a comparison tool to look at the average home and mortgage cost at a county level if you’re interested in buying a US home, and you can also use helpful tools from real estate websites like Zillow which show average rental costs, as well as offering search and filter tools to find a new home.

Healthcare: Healthcare in the US can be very costly. If you are not offered comprehensive medical insurance through your employer, you’ll need to make sure you are covered for health emergencies and minor care. You can consider private insurance through a US or international provider, or if you’re eligible you may be able to get care through the US government’s Health Insurance Marketplace. You could also consider using a HSA – Health Savings Account if eligible, to pay for out of pocket health expenses tax free.

Tax: Taxes in the US is set at both federal and state levels which means where you live can make a big difference to what you pay. Some US states do not have income tax, so although federal taxes may still apply, the costs from your pay packet might be lower. State-specific tax deductions and credits can also apply, so checking out the tax details for your preferred location early can help you understand your budget.

Childcare and schooling: The US government offers some free childcare to younger children, but this is aimed at low income families and eligibility criteria apply. Most states then offer Pre-K public schooling for children from 3 years old, although you may still need to pay some fees for this. Public schooling in the district you live in is usually free through high school, but there are still costs such as uniforms to consider. State university tuition may cost less for residents of that state, which can be worth considering if you have older children.

Food: The US has a very broad range of grocery retail chains which allows you to choose between services based on price and preference. Most stores offer basic ranges which are quite economical, through to luxury items.

Transportation: Transport costs in the US can be high, and while public transport is good in major cities it may be sparse or non-existent in smaller towns and villages. If you live in a more rural area – or even in some towns and cities – you may find you’ll need a car of your own to make life practical, which can push up costs a lot.

Entertainment: Entertainment costs in the US depend entirely on your interests and preferences.

This guide covers some places to look if you’re planning your US budget, including options for US government support and practical steps you can take to reduce your day to day bills.

We’ll also touch on another common problem for expats in the US – the costs of managing your money across different currencies. Using a provider like Wise which uses mid-market exchange rates and allows for flexible ways to hold, send, receive, spend and exchange USD and other major currencies can help you save both time and money. More on that later.

Saving on housing and accommodation costs

In the US, your housing and accommodation costs are likely to be the biggest outgoing you have. Here the key is shopping around, including looking at different locations if you’re able to. Regional cost variations are huge, so being flexible with the area you choose to settle in can save a lot of money.

Finding affordable housing

If you’re planning to rent in the US, you’ll want to take some time to get to know the rental market in the city or town you’re going to be living in. You’ll usually be able to find house-sharing and co-living options in cities, with specific student accommodation options in cities with large universities.

The costs of renting in the center of a large city can be very high in the US. However, in most cities, you’ll be able to look at a variety of different suburbs to find an option which balances convenience and cost for your specific needs. You can also consider buying a property in the US.

Private landlords may be open to negotiating rent and lease terms, depending on the situation. You may find a landlord will offer a discount on rent if you pay several months up front for example. There are also some US states which have rent control policies. These policies vary a lot by location but generally mean landlords can only increase rents at set times during a contract agreement, and in some cases, by a fixed amount.

Reducing utility costs

The US climate varies hugely, which means your energy costs can include both heating and cooling depending on the time of year and the location you choose to live in. The average costs of utilities by state can also vary a lot. Providers like Electric Choice let you enter your Zip code to see the best provider for electricity in your location, to minimize the costs.

When you’re looking at the costs of energy, you can also compare the costs of phone plans and internet which are also often featured on comparison websites to let you get the best deal for your needs.

Food and grocery savings

Food costs in the US may feel quite high, depending on where you’ve lived previously. Food costs in the US rose sharply following the global pandemic, hitting almost 10% year on year in 2022. This is now slowing, and there’s huge competition for customers across grocery retailers which does help drive down the costs of core products.

Smart grocery shopping

Here are a few local tips to help your grocery budget go further in the US:

• Store loyalty programs from retailers like Costco, and Sam’s Club by Walmart, can be an excellent way to get discounts and earn rewards with your preferred stores
• Apps like Too Good to Go offer discounted short dated food which can be a great bargain if you’re lucky
• Local markets (outside of tourist towns) can be a great place for low cost seasonal produce
• Bulk buying pantry goods can help save money – and using meal planning strategies goes a long way to avoid food waste

Eating out and entertainment on a budget

Your entertainment budget in the US will depend a lot on what you like to do for fun. Here are some ideas to help stretch your cash a little further:

• If you like to eat and drink out, look for happy hour deals and lunch specials which are very common in pubs and restaurants
• The US has some excellent parks, and national parks which can be used for walking, jogging, picnics and other leisure activities with no fee
• Some US beaches are also free for public access which can make for a low cost day out for all the family
• State Parks may offer ways to camp for low or no fee which can be another popular family activity when the weather is good
• Look out for museums which offer free entry, either year round or for specific days of the month or year – this can be a good way to see your city like a tourist for no fee
• For low cost shopping, look out for thrift stores and second-hand markets for some excellent deals

Transportation costs

Public transport in the US is relatively extensive in cities, but can be patchy in smaller towns and very hard to find in rural areas. Disruptions can occur, so even if you’re familiar with the networks, you’ll need to keep on top of the latest news to learn about delays or closures.

Public transport in the US is quite varied depending on where you happen to be. Cities like New York and San Francisco have good networks which allow you to simply tap in and out of a bus, train or tram with a specific transport payment card, or your normal contactless debit card.

Car ownership in the US is another option, although again you’ll need to consider the costs of parking, fuel and maintenance. Depending on where in the US you live you may find that road tolls apply – including costs and fees to enter city centers in places like New York, which can be very high.

Alternative options include walking and cycling. Here the practicality depends on the type of travel you need to do. Some US cities are fairly walkable, and cycling on the roads is common. Cycle paths exist in many cities, and the network is growing – but collisions between cyclists and vehicles (and pedestrians) do still happen.

Banking and financial costs

As an expat in the US banking costs could be a concern. Checking accounts for day to day use often have simple ways to waive the monthly fee, but there are other costs to consider when you transact. You may also want to get US based options to save and invest. Here are some things to think about:

• US banks offer good account products which often have low headline costs – check out the service fees before you sign up though
• It’s quite hard to find a bank account in the US which supports multiple currencies
• In some cases, the limits for digital transactions can be lower than you may expect – meaning banking in a branch is unavoidable, incurring higher fees
• Eligible taxpayers may be able to access student loan interest deductions which offsets the costs of study against your annual tax return
• If you’re employed in the US ask if your company has a 401(k) employer matching program. This can be a valuable way to save for retirement

For managing your money flexibly across currencies, the Wise Account and linked Wise Multi-Currency Card are especially handy for spending at home and abroad, with no monthly fees, and the mid-market rate.

You can receive USD and other currencies to your Wise Account, making it easy to keep on top of your finances day to day.

Understand your credit score

The US market offers a very good choice of credit cards, including ways to earn rewards, cash back and airmiles as you spend.

Credit cards are offered based on your credit score and personal situation – so as an expat you may need to spend some time building your credit history from scratch when you arrive. Secured credit cards can help here, and are available from most major banks.

Credit cards have extremely varied credit limits and interest costs, so shopping around is essential to make sure you don’t end up spending more than you need to on fees.

Once you have built a good credit score you may find you can unlock lower borrowing costs if you ever need to take a US loan.

Choosing the right account

US bank accounts are generally split into checking accounts for day to day use, and savings accounts for interest earning opportunities. Having a local USD account is pretty essential in the US, to pay rent and access services like a cell phone contract.

• Compare a few different accounts to choose the right one
• If you’ll need to deposit cash or prefer to bank in person, look at banks with branches close to your home – banking hours are 9 – 5 in the US, and so getting to a branch during the working week can be a challenge if it’s not close
• Look for a bank which has no ATM fee and which is in a global network to allow you to withdraw for free overseas
• Most checking accounts offer an overdraft – this service can come with fees, so make sure you know what your account conditions are
• Multi-currency accounts like Wise can be beneficial to keep costs low for international people when receiving and sending overseas payments

Managing your finances internationally

Managing your finances internationally can mean dealing with a few specific challenges, such as the costs of currency conversion and foreign transaction fees. Here are a few tips:

• Look carefully at currency conversion fees when you send or receive payments from abroad – your bank may add its fee into the exchange rate used, making this hard to spot
• If you transact internationally, look for a provider which has the mid-market exchange rate, and avoid hidden fees and markups
• Some providers let you set automatic conversion instructions and rate alerts which can be helpful for timing international transfers to get the best available rate

For day to day money management and international payments, check out Wise’s multi-currency account. You get mid-market exchange rates, with ways to receive 8+ currencies with local account details, and send money to 140+ countries.

There are even automatic fee discounts for large transfers over 20k GBP (or equivalent in other currencies), and a dedicated support team for large transfers to help you get started.

Saving on healthcare and insurance costs

Healthcare in the US is expensive compared to many countries globally. As an expat you’ll need to take steps to ensure you have adequate insurance coverage for health emergencies and minor care.

Many people working in the US are offered comprehensive medical insurance through their employers. If not, you can take out private insurance through a US or international provider, including specialist plans for international students and other recent arrivals.

If you’re eligible you may also want to check out the options available on the US government’s Health Insurance Marketplace. You could also consider using a HSA – Health Savings Account if eligible, to pay for out of pocket health expenses tax free. Some preventive care may also be covered under ACA which allows you to access screening and other services with no upfront cost.

For people who need ongoing medication prescription discount programs from providers like Good RX, and choosing generic medication options where possible can yield savings. It’s also helpful to know that there’s a large cost difference between seeking help from an urgent care center vs. a hospital emergency room. If possible, look for urgent care centers when you have a medical problem that needs swift treatment, but which is not an absolute emergency.

Building an emergency fund as an expat

Having an emergency fund as an expat gives peace of mind and can be essential if your situation changes when you’re away from your usual support network. If possible, you’re usually advised to set aside 3-6 months expenses which you can draw on if you lose your job, or run into other sudden financial problems.

If you’re building an emergency fund, make the most of your money by looking for high-yield savings account options – often some of the best deals are from online only accounts.

Remember also to keep your emergency funds accessible across borders in case of emergencies in the US or your home country. Here Wise can help with 40+ supported currencies and easy ways to withdraw your funds, or send fast payments to 140+ countries if you ever need to.

Long-term financial planning

If you’re planning on being in the US for a significant period of time, you may be thinking longer term about managing your financial planning there. In this case you’ll probably want to consider your pension options, including employer and private pension availability, as well as investment and saving opportunities.

There’s no single best approach to planning your long term finances – it’ll come down to your goals and your personal preferences. For example, some expats may choose to invest in a US property as a home to live in, and an asset to sell at a later stage. However, this is not without risk – and so as with any financial decision, getting professional advice is a good idea.

While you’re thinking longer term you may also want support with repatriation financial planning, depending on where and when you expect to leave the US. Moving your finances to a different country can be complex and have tax implications – so knowing what to expect early on is a benefit.

Conclusion

Saving money in the US as an expat is possible, but the exact steps to take will depend a lot on your personal situation. Here are a few final thoughts:

• If you have flexibility about where you live, choosing lower cost accommodation outside of the city center can help reduce your major costs significantly
• Shop around and compare providers for utilities, cell phone, wifi and other essential services – there are lots of US comparison resources to help you find a good deal here
• When planning your grocery budget look for the best balance of cost and convenience – warehouse and wholesale retailers like Costco can be helpful to get low costs on high volume items
• Be creative when planning your leisure time – there are lots of free things to do in the US, particularly if you like the outdoors, or are into history and culture

Building financial stability as an expat living in the US can seem challenging but can be achieved with small, sensible steps. This guide gives some ideas – and as someone living an international lifestyle it’s also well worth cutting out unnecessary money management costs with a provider like Wise.

You can use Wise to hold and exchange 40+ currencies with no monthly fees and the mid-market rate in the US.

Useful Resources

• Wise – Wise multi-currency account and card (US)
• Health Insurance Marketplace – US government backed healthcare information
• HSA – Health Savings Account – landing page and details of health savings accounts for tax efficiency
• National Association of Realtors – median home price information for the US
• Zillow – real estate website including average rental pricing information
• US government support – US government information about available benefits and basic support
• Electric Choice – comparison site for electricity costs and providers
• Good RX – details of medication prescription discount programs