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Course: Careers > Unit 1
Lesson 5: Deciding where to live and workCost of living comparison: how does your city stack up - by Better Money Habits®
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As you think about moving to a new city, you might size up the job market or the social scene. But you may also want to think about the cost of living. Here’s a cost of living comparison by city in a few spots popular with young adults.
Rent
Wherever you live, housing is likely your biggest expense. A general rule of thumb is to spend less than 30 percent of your income on rent, but each budget is different. The median rents below represent newer, two-bedroom apartments close to the city center.start superscript, 1, end superscript
Utilities
The numbers below reflect total energy bills.squared Keep in mind you’ll likely have additional monthly expenses, such as water and trash collection. You may want to do some research or check with your landlord about mandatory expenses.
- Portland: $151/month
- Salt Lake City: $149/month
- Raleigh: $148/month
- Des Moines: $131/month
Car insurance
While these cities have public transportation, residents often choose to drive. Besides calculating car insurance costs, consider the price of gas, parking and tolls.cubed
- Portland: $107/month
- Salt Lake City: $88/month
- Raleigh: $66/month
- Des Moines: $87/month
Sales tax
Sales tax drives up the cost of just about everything you buy. Keep in mind that rates can vary by municipality, so cities and suburbs in the same metropolitan area may have different rates.
- Portland: 0%
- Salt Lake City: 6.85%
- Raleigh: 6.75%
- Des Moines: 6.0%
Remember, sales tax is likely not the only tax you’ll have to pay. You may also want to look up income and property tax rates in the areas you’re considering.
Dinner out
Millennials spend an average of 43% of their food budgets dining out, so restaurant prices can make a big difference. The prices below are based on the cost of an 11- to 12-inch pizza at a typical chain restaurant.start superscript, 4, end superscript
- Portland: $13.49
- Salt Lake City: $8.99
- Raleigh: $9.74
- Des Moines: $8.49
start superscript, 1, end superscript C2ER Cost of Living Index, 3Q 2015
squared C2ER Cost of Living Index, 3Q 2015
cubed CarInsurance.com, average quotes in zip codes 27601, 50314, 84128 and 97206
start superscript, 4, end superscript C2ER Cost of Living Index, 3Q 2015
The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.
Want to join the conversation?
I notice a lot in lessons like these expenses are listed out to us. For those who are inexperienced or never interacted with such expenses, how does a person (who's considering moving) ensure they're remembering/calculating realistic expenses?(28 votes)
i guess i would have -in the first place- before moving, to consult the elder people i know which are mi padres. Because if we live realistically and started to notice how the world has been going into these few years. we have been into this kind of expenses since we were kid but now it just into another different things. i really know that we all can do it just fine. just need to jump in and see what's coming. Try and learn an error.(7 votes)
- which city is best for abroad?(14 votes)
Hi Tauhidul, the best city would depend on your needs and desires and how long you'd like to stay there. The best is most likely not listed on this map, but I'd say Portland is probably the best due to resources and other opportunities such as Seattle, Washington or California.(3 votes)
Referring to good places to move to for oppurtunities and the social scene, is Miami, Florida a good place to move to? And what are the statistics for cost of living out there?(7 votes)- I grew up in Florida, and while I've only been to Miami a couple times, I recommend you consider the hot and humid climate, the stratified economy of haves and have-nots, the badly gerrymandered state government, and the diversity of pests. Once you eat a Publix sub or a freshly-picked orange, though, you just might stay!(3 votes)
- I'm not planning on moving, do I still have to know this information?(5 votes)
I think it's always good to know something about finances, no matter where you live.(6 votes)
why do people need to have job's anyway can we just live our live the way we want to(6 votes)
But you need money to live your life the way you want. And you need a job to get money. Unless you want another way to get money?(2 votes)
- Which part of dallas texas is a place to move in to?(6 votes)
- North Dallas is a good place to move into compared to South East Dallas and other areas.(2 votes)
- so everyday expenses, etc. are what makes living cost(3 votes)
What if one person is a middle-class, who can afford resources but are limited, how does that person afford the resources and pay their dang on' bills?(3 votes)- I notice a lot in lessons like these expenses are listed out to us. For those who are inexperienced or never interacted with such expenses, how does a person (who's considering moving) ensure they're remembering/calculating realistic expenses?(4 votes)
It tells different care insurance per place but doesn't just depend on the car dealership Oof I'm sorry I was just wondering even thou it has nothing to do with this...(4 votes)