Living
expenses in the United States are often high, and refugees
need to be extremely careful about budgeting, saving money,
and using credit.
Managing
Your Income
It is essential
to know how to manage your money when living on a
limited income. Typically, your "fixed expenses" will
be:
Rent
This will usually be the largest item and the first one
for which you should budget.
Utilities
Electricity, gas, water, and garbage collection. Some of
these may be included in your rent, but you may have to
pay for one or more separately. Costs for heating or air
conditioning fluctuate with the seasons.
Food
When possible, shop at larger stores, where prices are
often lower. Compare products to find the brand that gives
more for the best price.
Transportation
You should consider the cost of travel to and from your
job each day, shopping trips, and other routine transportation
needs. In many places, monthly discount passes for buses
or subways are available.
Telephone
Remember that long distance calls are very expensive. Long
distance calls are generally less expensive on Saturday
and Sunday and late at night.
Where
to Shop
There are many different types of stores and markets in the United States, and
the sorts of goods and services offered by each vary greatly. Here are five types
of shopping places:
Supermarkets
These are the most common type of food store. In addition,
most also sell cleaning products, cosmetics, magazines,
some clothing and household items, and non-prescription
drugs. Many people reduce the cost of shopping by using
discount coupons and purchasing supermarket store brands
or brands being sold at temporarily lower "sale" prices.
Department
stores These stores sell clothing, furniture, appliances,
hardware, shoes, and other non-food items. Some of them
are "discount stores," where prices are lower.
Thrift
shops These shops sell used items at very reasonable
prices. Most people take pride in finding "bargains."
Ethnic
foodstores These food stores, often owned and managed
by immigrants or former refugees, may be found in your
community or a nearby city if there is a large population
of an ethnic group there. You may find familiar foods
from your homeland in an ethnic food store.
Yard
sales or garage sales These are advertised in the newspaper
or on signs in the neighborhood. At these sales, people
sell items from their homes, usually at very low prices.
They are excellent places to buy household items, furniture,
or clothing.
Sales
Tax
Consumers in most states pay a sales tax in addition to the cost of the item.
(Some items, such as food or medicine, may be exempt.) This tax is a percentage
of the cost of the item and is calculated at the cash register. The price on
an item or on the store shelf usually does not include the sales tax.
Other
Taxes
The federal, state, and some city governments collect income taxes. Also, local
governments collect property taxes on homes, buildings, land, and sometimes personal
property such as automobiles. These taxes help support many of the services used
by all residents, including refugees.
Banking
To keep their money safe from loss or theft, Americans generally keep their money
in a financial institution such as a bank, savings and loan association,
or credit union, rather than at home or with them. Financial institutions
pay interest on the money kept in some types of accounts, but usually charge
fees for services such as checking accounts or credit cards. Most people
have a checking account from which they write checks to pay their bills.
Using
Credit
Credit card purchases and "buying on credit" (buying goods or services
and paying for them over a period of time) is common in the United States. Many
businesses offer goods and services on credit to enable people to buy things
they cannot otherwise afford. Newcomers should be cautious about using credit
cards or credit plans to buy such items as appliances, furniture, or automobiles.
The total cost of such purchases is especially high because of interest charges
added on to the price. If a purchaser misses a payment, the company can take
back the product without refunding the money already paid, and the purchaser
may have problems obtaining credit or loans in the future. Also, beware of advertised
credit card schemes that sound "too good to be true."
Refugees
should set aside part of their income to repay their travel
loan. This will help establish a good credit rating in the
United States. It is much easier to get a loan if you can show
that you have repaid a loan in the past. Ask your resettlement
agency for information about how to repay the travel loan.
