| 1. |
Living Expenses
The figures in this chapter shall give you an idea how far your salary will take you in daily life in the U.S. Of course, personal preferences vary, so we can only provide a rough estimate. The information we give should help you to decide whether you and your family can maintain the standard of living you are used to in your home country. Websites, such as http://www.bhg.com/bhg/category.jhtml?catref=cat190002 or www.runzheimer.com can give you - sometimes for a small fee - individualized data based on your country of origin.
Most cities surrounding Fermilab will provide you with the advantages of life in a suburb with Chicago less than 40 miles away. Naperville, as one of the larger cities (approximately 120,000 citizens) is one of the fastest growing regions in the entire United States, so that the costs of living are slightly above the nationwide average.
No matter where you end up living, there are three groups of expenses you are going to face: You will very likely need to purchase a car (see chapter VII.), which depending on your choice can be a major investment. Renting an apartment will most probably cost more than $700/month, depending on size and location (see chapter VIII.). In addition you need to pay maintenance costs for your car and apartment that add up to your daily living expenses.
Comparing prices of single goods, always keep in mind that these are averages. You will find discount retailers, such as ALDI for instance, that offer the same product at a much lower price, and health food stores, such as Whole Foods, that sell organic products usually at a higher price. Also, the U.S. is the country of special sale offers and discount coupons. Each grocery and department store chain has reduced-price sales going on almost every week. If you have the time and interest to study advertisements you will be able to purchase almost every item at a sale price. This applies especially to bigger expenses, such as electrical appliances, furniture and clothes. The Sunday editions of newspapers include many pages of advertisement, which will not only give you an idea about prices, but also get you acquainted with different stores and what kind of products they offer.
The following list provides average costs, as of June 2000. If you wish to obtain more detailed information, specific to a certain town, go to Yahoo!'s Real Estate City Comparison service at http://verticals.yahoo.com/cities/. Using a web search machine with the key word "relocation" will provide more comparison services.
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| Product |
Explanation |
Average cost in $ |
| Home |
Single family, 2,000 square feet (180qm) |
215,000.00 |
| Apartment |
2 bedrooms, monthly rent |
850.00 |
| Utilities (see chapter VIII.) |
Monthly costs for 2 bedroom apartment, ca. |
150.00 |
| Phone |
Monthly fee (call charges extra) |
15.00 |
| |
Long distance calls overseas, per minute |
0.20 |
| Cable TV |
Basic, per month, i.e. AT&T |
30.00 |
| Used car See |
chapter VII. |
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| Gasoline |
Per gallon, 89 octane |
1.45 |
| Auto insurance |
Average per year for one car with full coverage |
1,685.00 |
| Sport |
Membership in health club, monthly |
55.00 |
| Entertainment |
Ticket for movie theatre, weekend night |
8.00 |
| Restaurant |
Entrée (Meat, french fries, salad) |
12.00 |
| Fast Food |
1/4 pound cheeseburger, large fries, large soft drink |
4.00 |
| Milk |
2 %, per gallon (3.89 l) |
2.69 |
| Chicken |
Per pound, based on whole chicken |
3.99 |
| Tomatoes |
Per pound, not imported |
2.99 |
| Bananas |
Per pound |
0.69 |
| Bread |
Sliced white, one pound |
1.89 |
| Butter |
Per pound |
2.99 |
| Orange Juice |
Half gallon, not from concentrate |
2.99 |
| Eggs |
One dozen, large |
1.49 |
| Coca cola |
Half gallon bottle, classic |
1.69 |
| Potatoes |
Per pound |
0.99 |
| Pizza |
Frozen, large, name brand |
4.99 |
| Pain Reliever |
Over the counter medicine, name brand |
3.99 |
| Baby Food |
Jar |
0.69 |
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| 2. |
Banking
To become a full member of the American society, you must have a bank account. Most people in the U.S. pay cash money for smaller expenses for convenience and safety reasons. For larger expenses, checks, debit and credit cards are the most common ways of payment but they all require a bank account.
To open an account you will always need an ID (passport, driver's license) and a social security number. If you want your spouse or another family member to be on your account as a joint owner, they will need to provide an ID and a social security number as well.
a) Checking and savings account
Usually, you open a "checking" and a "savings" account at a financial institution such as a bank or credit union. There are several different types and serve different purposes. A checking account is where you deposit your paycheck through an electronic direct deposit or you can deposit it in person at your financial institution. When you open your checking account, you will need to order personal checks. There are three ways to access the money in your checking account.
- By filling out a personal check for the amount of a purchase or bill;
- Using an ATM or VISA check card at an Automatic Teller Machine (ATM) to withdraw cash or at a store to make purchases;
- Visiting your financial institution and withdrawing from a teller.
Each time you use one of these ways to access your funds, the money will be deducted from your checking account. It is very important that you write down the amounts of your withdrawals in your check register every time you buy something or withdraw cash from your account so you know how much money you have left. A savings account is not to be used for everyday withdrawals. It is designated to save money for special expenses while receiving dividends on this money.
When you open a saving and checking account, the financial institution may ask you to sign a form for "overdraft protection". This is an automatic transfer from your savings to your checking account to cover any outstanding checks you may have written, which are more than the balance in your checking account. If you do not give authorization for this "overdraft protection", a check you issue that is more than the amount in your checking account, will be rejected. This is not only embarrassing, but most companies charge a large fee for a rejected check. In addition, you will most likely have to pay a late fee for not paying the bill on time.
b) Argonne Credit Union
Fermilab employees and most users of Fermilab are eligible to join the Argonne Credit Union (ACU). ACU is a Not-For-Profit financial cooperative owned by its members. To join, all you need is your Fermilab I.D. Number, SSN and $25 to become an ACU member/owner. Profits the credit union earns are returned to members in the form of competitive dividends on deposit accounts, low interest rates on loan products and lower fees. ACU offers their members a large variety of financial products and services. Everything from checking and savings accounts, to loans and Visa credit cards. ACU also offers wire transfers to and from foreign countries, free notary services to members, international drafts to purchase international money, along with access to foreign currency, American and foreign travelers checks. ACU has a convenient office located in the lower level of Wilson Hall with an ATM.
c) Checks
Even though the credit card system was invented in the U.S., most people still write personal checks to pay their bills and to purchase product and services every month. Electronic money transfers to pay utility bills are available but check writing is more common. Writing a check without sufficient funding in your checking account gives way to expensive fees, which means balancing your checkbook each month is very important. It is important to track how much money you spend each month by writing down each check you write, any withdrawals or purchases you make with your debit/check card. This can be a challenge, especially if more than one person is using the same account.
To pay a bill using a check, you fill out the check form. Usually you will have to write the date, to whom the amount is paid, the amount written out as well as in numeral form and your signature at the bottom. By putting the account number or a note of what the payment is for on the remittance line of the check, you can keep track of payments. Detach the assigned portion of the bill sent to you and enclose both items in the envelope usually provided. Be sure to write your address as the sender on the outside left-hand corner of the envelope and mail it with the correct amount of postage. Home banking or online banking can be an option to pay bills. Some cities and utility companies allow you to pay your bills online. Argonne Credit Union offers their members this service.
Businesses and people within the state where you reside often accept personal checks issued by your bank. To transfer money to an account outside the state, you can use a money order or wire transfer. Financial institutions, the Post Office and a Currency Exchange offer money orders and wire transfers, which provide you with a receipt of what you paid. To find out more of these options, contact ACU or your financial institution.
d) ATM/Debit/Check Card
The debit/check card, a fairly new product, is meant to replace personal checks. It looks like a credit card with the VISA or MasterCard logo on it and often has similar functions. The debit/check card serves as an ATM card allowing you to withdraw cash from an ATM. You often have to pay a transaction fee, usually $1.50, every time you use an ATM that is not operated by your financial institution. However, if you use an ATM operated by your institution, you will not typically be charged. Secondly, instead of issuing a check the debit/check card can be used to pay electronically in stores. In both cases you slide your card through a small box by the cashier or insert it into a slit at the ATM, put in your personal identification number (PIN) consisting of four figures, and the amount will be immediately electronically withdrawn from your checking account. Paying in a grocery store you will be asked to confirm the total amount, and you can even request "cash back", at no additional cost, and the cashier will hand it to you. This is an alternative way to receive cash without going to an ATM.
Another way of using the card in a store is simply presenting it as a credit card. In this case you will have to sign a copy of the receipt for the merchant and keep a copy for your records. The money will be deducted from your checking account within a few days. (Whereas in the case of a true credit card you will receive a monthly bill: see below.) In addition you are able to use the debit/credit card similar to a credit card if ordering merchandise over the Internet or by phone for hotel reservations or a rental car. The card number plus the expiration date will be sufficient to directly charge your checking account.
It is obvious that because of its flexible use, you have to be careful to protect your debit/check card and secure the card number and especially the PIN! Never give your PIN to any person. Report a lost or stolen card immediately. Your liability is limited to $50 for ATM transactions when reported within two days, but these liabilities can rise up to $500 if you wait longer. However, there is no liability for point-of-sale purchases, which require a signature. If you report the loss of your card, your financial institution will be able to disable the card, so that no new transactions can be conducted.
e) Credit Card
Credit cards are instruments to temporarily borrow money: Charges made to your credit card will not be automatically deducted from your checking account. Instead, you use the service of a company lending you the money. The Credit card company will send you a bill once a month and charge you interest on any outstanding balances or even an annual fee for its service.
Dozen of companies are offering their services to customers and some will even award you with airline miles. Always check the annual fee, which is usually higher if you sign up for a credit card, related to an airline program. In addition to the annual fee, credit card companies charge fees and interest if you do not pay your credit card bill on time. These interest rates are significantly higher than interest rates charged for loans at a bank or credit union. For example, ACU offers a VISA credit card with a fixed interest rate of 11.9% APR (Annual Percentage Rate) with no annual fee. Be wary of the credit cards that offer a very low introductory teaser rate of 1.9% that could rise rapidly up to 24.9% if a payment is late or when the introductory time period has ended. A great way to establish credit is to use your credit card responsibly, by purchasing items within your credit limit, making regular payments on time or paying your balance in full.
f) Credit History
Whether you want to borrow money from a bank, apply for a credit card, sign up for a phone contract, or rent an apartment, it is more than likely that a credit check will be run in order to determine your outstanding debts. To check your credit history the business you are dealing with will contact a company that has access to your credit history, providing information about your current credit card balances, car loans, mortgages, and if you have made your payments on time. If you come to the U.S. for the first time, you will not have any credit history. This may seem good to you, but it could result in rejection of the service you are asking for or you may be required to provide a larger deposit. Usually, you will not need a credit history if you stay in the U.S. for a short period of time.
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