Cost of Living in Australia for Students in Comparison to the US

Cost of living in Australia for students 

When considering studying abroad, one of the most important questions prospective international students ask is: “What will I actually have to spend just to live?” Understanding this concern opens up a crucial comparative angle: how Australia stacks up against the United States in terms of everyday living expenses for students. This article is aimed at students (and particularly Indian students) evaluating whether to study in Australia or the US. We’ll walk you through typical expenses, compare them side-by-side, highlight the factors affecting costs, and offer practical budgeting advice.

The significance of this comparison

It all comes down to how much you'll pay each month for necessities like food, shelter, and transportation. You (and your family) will experience less financial hardship if a country is less expensive to reside in. That gives you more time to enjoy yourself and concentrate on your schoolwork. For instance, your entire budget and level of relaxation may be significantly impacted if you know you'll spend about AUD 2,500 per month in one location compared to USD 3,000 in another.

The cost of living of Australian students.

To get a visa to Australia, an individual international student will be required to demonstrate that his yearly living costs (not including tuition) are AUD 29,710 (approximately AUD 2,475/month). 

As per the advice of monthly budgeting, the international students must aim between AUD 1,400 to AUD 2,500 per month (for housing, food, transportation, and other needs) based on their city and lifestyle. 

The accommodation prices are quite different; in Queensland, shared room can cost approximately AUD 219 per week (approximately AUD 950 per month) and studios or one-bedroom apartments are comparatively more expensive. 

In combination, Australia gives a good illustration: in the typical cases of a student, you need to spend around AUD 2000-2500 per month (~ AUD 24000-30000 per year) to live, without the tuition fee.

Average student living expenses in the US.

The cost of living in the US varies among the international students, according to the city, accommodation and lifestyle. A single comparative study put monthly expenditure on living in the US between USD 2,000-3,500/month estimated as spending by students. 

In most of the US cities, accommodation is also more expensive. One source estimates that in the US on-campus housing can cost USD 1,850/month and off campus USD 1,504/month (also, again, it seems below other US averages). 

According to a comparison site on cost of living, the general cost of living including rent is approximately 11% higher in the US compared to Australia. 

In brief: although the cost of living in the USA differs greatly depending on the part of the country, most students are advised to budget around USD 20,000 30,000/year in living expenses (without tuition).

The reasons behind the cost differences and what students need to be aware of.

Key variables include:

• City: Large cities (Sydney, Melbourne, New York, San Francisco) are much cheaper as compared to small cities or regions. To illustrate, average monthly cost in Sydney, Australia, can be AUD 2,200-4,000 +, but in Adelaide, can be AUD 1,400-2,100/month. 

• Type of accommodation: On-campus and shared and private apartment: The closer to campus one lives, the higher the rent.

• Lifestyle/spending: Restaurants, committing to leisure, commuting distances - in the event you prepare, using mass transit and residing closer to the urban core, expenses reduce.

• Part-time jobs: In Australia, as a student, they can work up to 48 hours per week during a term, that is partially covering the cost of living. 

• Currency/exchange and inflation: Exchange rate is important to Indian students who will change INR to either AUD or USD.

• Health care, insurance and compulsory payments: In Australia international students are obliged to obtain OSHC (Overseas Student Health Cover). 

Due to these variables, the cost profile of two students in the same country can differ radically.

Advice to Indian students who have a choice between Australia and the US.

• When you choose Australia, you can afford to make that budget more accurately: expect to spend about AUD 30,000 annually on living costs (with tuition). It is an assistive planning figure.

• In the US, due to a larger variation, buffer: maybe USD 20,000-30,000/year or more on living, and tuition.

• In both countries, you may save a lot of money on living expenses especially by opting to have a small city or a campus in the region.

• In case there is a tight budget, Australia might slightly surpass in relation to the affordability of living but the gap may not be as tremendous- depending on the location in the US.

• Take into account the work rights: Australia provides quite flexible rights of part time work to students which is beneficial in terms of cost management.

There is only one dimension of cost. The quality of education, course suitability, post-study work rights, career opportunity and personal fit are also required.

Practical budgeting tips

• Select shared accommodation or stay a little bit out of the city centre to save on rent.

• Get food at home, visit low-end supermarkets (ex: ALDI, Coles in Australia) instead of going out to eat, one source claims in one of the comparisons groceries in Australia can be between AUD 300-600/month, but in the US between USD 400-800/month. 

• Use student transport discounts or walk/cycle whenever possible.

• Monitor expenditure through budgeting applications to make sure that you do not exceed your estimated living cost of AUD 2,000-2,500/month.

• Consider contingencies: although visa applications may require AUD 29, 710/year to live in Australia, the reality is that living in certain expensive cities may cost more. 

Conclusion

The term cost of living in Australia does not only apply to Australia per se, but most importantly when considered within the framework of your possibilities. Compared to the US, students in Australia have a relatively competitive and even cheaper living cost situation. Australia can be the more prudent choice in terms of living costs, although this is based on the fact that you should pick the right city..

With that said, it is not the only part of the equation. You have to consider tuition, scholarships, work rights, and your future aspirations.