¿Cuánto cuesta? : The cost of living in Chile.

After a suggestion from my finance-savvy father, I decided to delve into the economical differences in Chile versus the United States. While my circumstances are different than the Chilean citizens (receiving only a volunteer stipend and having my room and board taken care of by a wonderful family), I am still participating in the consumerist country.

From the experiences I have had thus far and research I have done, it is clear to me why the majority of 20- and even 30-somethings still live at home. The average monthly salary working 42 hours a week is equivalent to $350. A standard one-bedroom apartment in Temuco is $200-$250 a month. The culture supports the adult children to live at home and continue to boost the economy. Discussions with friends and teachers at the school have enlightened me that they believe Chile to be one of the more expensive countries in South America. This is credit to the low salaries and higher cost of living. Some individuals in the South of Chile cross into Argentina to work. The consumer tax rate is 20% on any item, food included with the exception of port cities. As discussed with some other volunteers, saying you are going for coffee or going out with the intention of simply eating is often times followed with confusion. Many products here cost exponentially more than they would in the States, specifically those needing to be imported. Fruit, wine, bread= cheap. Barbies, iPads, Clinique makeup= crazy caro.

My host family and I watch the news together in the evenings after Pobre Rico¸ our favorite primetime telenovela. This has exposed me to learning about the system. One interesting difference is that each of the 4 main department stores has banks associated with them.  In a recent conversation with Tatiana and Juan, I learned that obtaining credit for ANYTHING here is very easy. However, paying credit bills is not effectively monitored with inconsistent forms of mail and common pre-pay cell phone services.  Additionally, all stores and commercials advertise paying in “cuotas,” or payment plans without interest. In the past two weeks there have been at least two news stories each night about “becas” (scholarships) and “bonos” (bonuses or handouts) for everything from first-generation college student to being married for 50+ years.

In Temuco on any given Friday the mall and stores are PACKED with shoppers, not to mention the apparent paydays at the middle and end of the months. When purchasing anything, the cashier will ask for the RUT number, most closely associated to our Social Security Numbers, and citizens earn points based on purchases. I have not yet gotten a clear explanation as to what these points are used for and truly wonder if anything manifests from them.

Overall, the Chileans are great consumers but at what cost-? At the risk of offending, I have avoided asking about savings and investments. I cannot quite get a grasp at the percentage of people living outside and above their means. The country is still very much developing and admits to “copying” how the United States and other countries operate.

In other news, September 1^st marks the month of celebrations. On Monday my high school is beginning the celebration of the 34^th Anniversary. I am pretty sure I have volunteered to dance “Rock N Roll” with my students. In two weeks we will celebrate Independence Day in Santiago and then spend a few days in Argentina.

Ciao for now!