Evaluating Total Costs: An Austrian Family’s Financial Transition to the U.S.

When considering an international move, families must carefully weigh the impact of varying cost-of-living indices alongside stark differences in social benefits systems. For an Austrian family thinking about moving to the U.S., a detailed financial plan is necessary to not just match their home country’s lifestyle but to also account for significantly higher living costs.

Understanding the Family’s Current Financial Setup

An Austrian family of four, supported by one income earner, currently lives comfortably on an average gross salary of €49,000 per year (approximately $52,000 USD). This income is sufficient in Austria due to strong social support systems that minimize personal expenses.

Austrian Benefits Versus U.S. Costs

In Austria, many of the family’s needs, including healthcare, higher education, and basic income (if there were no other income), are either free or heavily subsidized. Additionally, low-cost public transport and medication add to the savings, keeping monthly budgets manageable.

New Financial Challenges in the U.S.

Upon moving to the U.S., the family would face higher expenses due to the lack of comprehensive social benefits:

• Healthcare Costs: Monthly healthcare spending would average around $1,871.92, including insurance premiums and out-of-pocket costs.
• Education Costs: For two children attending university, planning involves significant expenses, totaling $241,300 over five years. Monthly savings to cover these costs would need to be around $260.57.
• Additional Expenses: Monthly costs would increase by about $300 for public transportation and medications due to higher prices in the U.S.

Adjusting for Cost of Living Differences

The cost of living in the U.S. can vary significantly depending on the state and city. For a rough comparison, let’s consider the Cost of Living Index. If the average index for the U.S. is around 70 (on a scale where New York City = 100), and assuming Austria’s index is around 65, the family must prepare for a general cost of living increase of about 7.7%.

Calculating Total Monthly and Annual Requirements

• Basic Monthly U.S. Expenses: $2,171.92 (healthcare, transport, and medication)
• University Savings: $260.57
• Total Monthly Before Adjusting for General Cost of Living: $2,432.49
• Adjusted for Cost of Living Increase:
  • Total Monthly=$2,432.49×1.077=$2,619.65
• Annual Income Requirement:
  • Annual Required=$2,619.65×12=$31,435.80

Overall Income Requirement to Sustain Austrian Living Standards in the U.S.

To cover the U.S. living costs fully and match their Austrian lifestyle, the total income required would be:

• Austrian Salary: $52,000
• Additional U.S. Salary Required: $31,435.80
• Total Annual Income Needed in the U.S.: $83,435.80

Final Thoughts: Making the Financial Leap

The financial leap from Austria to the U.S. is substantial, with nearly a 60% increase in required income to maintain the same standard of living. This comprehensive analysis serves to aid the family in making a well-informed decision regarding their potential move, ensuring they are fully prepared for the economic realities of living in the U.S.