Cost Of Living In Costa Rica

Is the lower wage of the average worker offset by lower cost of goods and services in Costa Rica? I am not an economist, but I will attempt to give some details of costs and wages to provide a perspective on the cost of living here. Wages are certainly lower here than in the US and some things are much less expensive here, but some things here cost as much or more than in the US.

As a baseline for thoughts on income, yearly compensation for teachers, which includes a housing bonus and health insurance averages about $10,000. Many people here work ‘odd’ jobs, doing what they can to earn 1 to 3 dollars/hour. These jobs include cooking, cleaning, repairing, cutting grass, babysitting. Drivers and guides appear to earn decent wages from tourists, but even that work can be sporadic especially during this weak year for tourism. The men on the horses are off to a day of work in the forest to measure and cut wood, likely from fallen trees. This traveling sawmill is equipped with cans of gasoline, chains for maneuvering logs, chainsaws and a hearty lunch.

Now, an extensive list of items that are much less expensive here! Ready? Mangos, bananas, papaya, and pineapple. Yes, they are delicious and we buy them by the kilo but man cannot survive on juicy tropical fruit alone. Most other groceries such as dairy, grains, beans, meat, spices, condiments, toilet paper, soap, wine and beer are similarly priced as in the US. Automobiles and any foreign made appliances, electronics, etc are expensive here, as Costa Rica places high tariffs on imported goods. Gasoline costs the same here and electricity rates are similar at $0.10 kwh. Monteverde is not cheap. The American dollars brought in by tourists and the cost of transporting goods to this mountain town push prices up.

Saturday, walking to Santa Elena, we received a free ride from a neighbor to the ATM for a cash withdrawal. We purchased a hammock at a general store for $20, spent $20 at the ferria (market) for fresh produce, and $60 for groceries at Super Compro. I passed the Planters peanut butter ($3 for 15 oz) but splurged on a bag of chips ($2) a liter box of vino ($4) and cinco cervezas grandes ($8). We treated the boys to scoops of ice cream ($3) and the taxi ride back home set us back $3. During the week, we will purchase bread from the local baker couple, cheese and yogurt from the local farmer and milk from the dairy down the block for a total of $20.

If you do the math, you can see that as we consume food, food costs alone consume most of a teacher’s ‘competitive’ income. A MUCH higher percentage of income is spent on food here than in the US. How do people here keep their costs down? In general, very little meat is purchased, starches and fruit are found at every meal, and any leftovers are eaten the next day, not to spoil in the refrigerator. Since disposable income, or money left over for other things, including savings, is minimal, people just do not purchase unnecessary items. They walk almost everywhere or those with cars offer rides to others without. Private school is a luxury which few can afford, admission to museums and preserves are out of the question for most families, and attics loaded with extra stuff are non-existent.

We were informed about the local economy prior to moving here, so none of this is a surprise. Life is quite basic here and people are happy with what they have and this is part of the appeal of living here. There is still worry about income and how will one support a sick parent or put food on the table when the breadwinner loses a job. This is just a way of life here, just as there is a way of life anywhere else.

FYI
Costs of other items: 100 sheets blank paper $3
Music CD $12
Set of 12 colored pencils el cheapo $2- Rose Art $5
Glue stick $2
2G Flashdrive $30
Crockpot $40
Table Lamp $40
Restaurant dinner for family of four $35
4 ½ hour bus ride to San Jose $5
Private van to San Jose $140