Living abroad as an Overseas Filipino Worker (OFW) comes with a variety of challenges, one of which is managing expenses in a foreign country. The cost of living can vary significantly depending on the country and even the city you reside in.
This article compares the cost of living in the USA and Canada, as discussed by Nurse Juan OFW in his YouTube video. Understanding these differences can help OFWs make informed decisions about where to live and how to budget their finances effectively.
Cost of Living: USA vs. Canada
This article is based on a YouTube video by Nurse Juan OFW. In this video, the vlogger commented on an infographic he saw online comparing the cost of living between the two countries. If you want to watch the full video, then click on the link below:
To summarize, here is a comparison of the cost of living in the USA vs Canada.
1. Rent
- USA: $1,900 (varies by location; $1,400 – $1,800 in city areas)
- Canada: $2,800 (higher in major cities)
2. Utilities
- USA: $150 (varies; $50 – $75 in some areas)
- Canada: $200 (varies by location and season)
3. Insurance
- Home Insurance USA: $50 – $80
- Car Insurance USA: $145 – $450
- Home Insurance Canada: $380
- Car Insurance Canada: Generally higher
4. Healthcare
- USA: $250 (varies; higher for dependents)
- Canada: Free
5. Phone and Internet
- USA Phone: $90
- USA Internet: $210 (varies; $45 – $70 in some areas)
- Canada: Similar range
6. Groceries
- USA: $800 (varies; $200 per week for two people)
- Canada: $1,200
7. Transportation
- Car Payments USA: $400 – $800 per month
- Car Payments Canada: Similar range
- Public Transport USA: Limited, mostly in big cities
- Public Transport Canada: More accessible
8. Car Fuel
- USA: $40 – $150 per month
- Canada: Similar range
9. Additional Considerations
- Entertainment and Leisure: Costs vary widely
- Savings and Emergency Funds: Important to build a financial cushion due to high living costs in both countries
Rent
Rent is one of the most significant expenses for anyone living abroad. According to the infographic discussed by Nurse Juan, the average rent in the USA is $1,900, while in Canada, it is $2,800. However, these figures can vary widely depending on the location. For instance, in Eastern Kentucky, rent can be as low as $1,900, whereas, in more expensive states like California, $1,900 might only get you a studio apartment or even fall short of that.
For Filipinos living in city areas in the USA, the rent typically ranges from $1,400 to $1,800 for a one to two-bedroom apartment. Again, this depends on the specific city and its cost of living. In contrast, in Canada, the higher rent prices reflect a generally higher cost of living in major cities like Toronto and Vancouver.
Utilities
Utilities are another essential aspect of living costs. In the USA, the average cost of utilities is about $150, compared to $200 in Canada. However, Nurse Juan points out that these costs can vary greatly based on the location and the season. For example, in Eastern Kentucky, utilities can be as low as $50 per month, while in other areas, they might be around $75.
The cost of utilities also depends on the weather. In the summer, air conditioning can drive up electricity bills, while in the winter, heating can become quite expensive. Additionally, the type of utility service provider and the inclusion of extras like gas can also affect the total cost.
Home and Car Insurance
Insurance is another significant expense to consider. In the USA, home insurance costs between $50 to $80, particularly in areas with higher crime rates. Car insurance starts at $145 for those with a US driver’s license but can go up to $450 for those without one. In Canada, home and car insurance can be significantly higher, with home insurance averaging around $380.
Nurse Juan suggests bundling home and car insurance to save on costs. This strategy can provide a discount, making it a more affordable option for many OFWs.
Healthcare
Healthcare costs are a major concern for many, especially in the USA where healthcare is not free. According to the infographic, the average cost is $250 per month. However, this can vary based on the individual’s circumstances. For dependents, the insurance cost is higher, especially for spouses, while it is relatively cheaper for children.
In contrast, Canada offers free healthcare, which is a significant advantage for those living there. This benefit can be a considerable factor for OFWs deciding between the two countries.
Phone and Internet
Communication is essential, and the cost of phone and internet services can add up. In the USA, the average cost for a phone plan is $90, and internet services can cost around $210. However, these prices can vary. Nurse Juan mentions that data plans with higher data limits or additional features like caller ID and protection plans can increase costs.
In Eastern Kentucky, internet costs started at $70 but increased over time. In more urban areas, internet plans can start as low as $45 for unlimited internet. For families, it might be better to get a comprehensive internet plan, while single individuals might find a good phone data plan sufficient.
Groceries
Grocery expenses also differ between the USA and Canada. The average cost in the USA is $800, while in Canada, it’s $1,200. These costs can vary based on shopping habits and locations. For instance, weekly grocery expenses can average $200 for two people when shopping at both regular and Asian grocery stores. This makes it quite expensive for one person if the $800 estimate is for a single individual.
Car Payments and Transportation
In the USA, having a car is often necessary due to limited public transportation options. Car payments can range from $400 to $800 per month. Cities like Louisville and Lexington in Kentucky have public transportation, but most areas require a car. Learning to drive and obtaining a driver’s license in the Philippines before moving can save time and effort.
Additionally, car fuel is an essential expense, with costs ranging from $40 to $150 per month, depending on usage and location.
Additional Considerations
Entertainment and Leisure
While the basic living costs are crucial, it’s also important to consider entertainment and leisure expenses. In both the USA and Canada, these costs can vary widely based on lifestyle and preferences. In the USA, dining out, movie tickets, and other entertainment options might cost more in big cities compared to smaller towns. In Canada, cities like Toronto and Vancouver offer a wide range of activities but often at a higher price. Budgeting for these expenses ensures a balanced and enjoyable life abroad.
Savings and Emergency Funds
Building a savings and emergency fund is vital for OFWs to secure their financial future. The high cost of living in both the USA and Canada necessitates having a financial cushion. This can help cover unexpected expenses such as medical emergencies, sudden unemployment, or urgent travel back to the Philippines. Regularly setting aside a portion of your income for savings can provide peace of mind and financial stability.
Understanding the cost of living differences between the USA and Canada is crucial for OFWs planning to move to these countries. Factors like rent, utilities, insurance, healthcare, phone and internet services, groceries, and transportation all contribute to the overall expenses. Additionally, considering entertainment and building