1. finance
2. bank
3. bank account

 Information Sheet
What Does It All Cost?
One of the first questions you are likely to ask when setting up shop in the San Francisco
Bay Area is: what will it cost? Every Innovation Norway client has different circumstances,
so while our office cannot provide you with a concrete number that you can budget with, we
have compiled information to outline the average costs of housing, office space,
transportation, and miscellaneous living expenses. This guide should help you estimate your
own budget using Innovation Norway’s Monthly Budgeting Tool.
Housing ............................................................................................ 2
Transportation .................................................................................. 4
Gasoline Costs ................................................................................ 5
Car Ownership ................................................................................ 5
Car Rentals .................................................................................... 6
Car Leases ..................................................................................... 6
Car Share ...................................................................................... 6
Casual Carpool ............................................................................... 6
Public Transportation ....................................................................... 7
Miscellaneous Expenses .................................................................... 8
Food ............................................................................................. 8
Car, Home/Renters, and Health Insurance .......................................... 8
Banking ......................................................................................... 9
Social Security Number .................................................................. 10
Utilities ........................................................................................ 10
Phone, Cable, and Internet Services ................................................ 10
Source: www.visualeconomics.com Please note that most of the average costs in this guide are specific to the San Francisco Bay Area. Housing
The San Francisco Bay Area has an extremely high cost of living, with the dynamic economy
of San Francisco and Silicon Valley creating some of the highest income concentrations of
anywhere in the nation. According to the Urban Land Institute, the average Bay Area
household spends $28,000 (kr 158.559) per year on housing. That being said, the San
Francisco Bay Area consists of nine counties and approximately 101 cities, so housing costs
can vary greatly from city to city. Additionally, the cost of living in a house in San Francisco
is very different from the cost of renting an apartment in San Jose. Low rent in East Palo
Alto may be the result of a dangerous neighborhood, whereas high rent in Palo Alto factors
in the desirability of its public schools and excellent city services. Daly City may be a less
desirable location because of its foggy weather, but the good weather of San Rafael and
surrounding North Bay cities may be offset by daily traffic on the Golden Gate Bridge.
First, you should decide on a couple areas that will jive with: 1) office location, 2) proximity
to public transit or freeways, depending on how you plan to get to work, 3) your personal
needs or your family’s needs (in the latter case, be sure to read the Schools section below),
and 4) your personal housing preferences (i.e. urban vs. suburban, weather, architectural
preferences.) Visit www.trulia.com to research the average rental price, crime, school, and
Page 2 of 14 San Francisco 2011 other statistics of the desired areas. Next you should research
rental availability on one of the most-used sites for temporary
housing, Craigslist.
You can search Craigslist according to 6 different areas
comprising the greater San Francisco Bay Area: San
Francisco, Peninsula, South Bay, East Bay, North Bay, and
Santa Cruz. The Peninsula and South Bay together comprise
most of what is referred to as “Silicon Valley.” Short-terms
rentals (less than a year) are best found under Sublets. You
may also wish to use www.mynewplace.com.
Housing advertisements on online resources like Craigslist
generate an enormous amount of response, so you may
consider taking a pre-move trip just to visit and lock in housing. Credit reports, first month’s
rent, and a
security deposit are typically requested for any year-long rental. Since you will likely not
have a credit report, bank statements and cash payments for the rent and security deposit
might be your best opportunity to edge out other renters.
To give you an idea of what homes and condominiums sell for in the Bay Area, the median
price paid for all new and resale houses and condos in the Bay Area was $338,000 (kr 1.8
million) in January of 2011; in 2007, before the financial crisis, the median price was
$665,000 (kr 3.7 million). Below is a chart with average 2011 rents for some of the most
likely areas considered by Europeans when moving to the Bay Area:
Location
Average 1-Bedroom Apartment Rental
Average 3-Bedroom Home Rental
San Francisco
$2,548 (kr 14.296)
$5,271 (kr 29.576)
Berkeley
$1,450 (kr 8.123)
$2,995 (kr 16.778)
Palo Alto
$1,700 (kr 9.523)
$3,922 (kr 21.971)
San Jose
$1,585 (kr 8.879)
$2,163 (kr 12.117)
Addition 2012: Due to the expected Facebook IPO, the housing prices are again on the rise.
Page 3 of 14 San Francisco 2011 Transportation
There are several modes of transportation in the San Francisco Bay Area. Within the city of San
Francisco, public transit offers the easiest and typically the most cost-effective method. In the greater
Bay Area, the lack of public transportation infrastructure means that residents are extremely reliant on
their cars, leading to the area’s unenviable 2011 ranking of fifth worst metropolitan area for traffic.
That being said, a number of trains, buses, and shared ride services serve most cities in the Bay Area.
You are required to carry a California driver license if you are working or becoming a resident of the
state. You may apply for a license at a Department of Motor Vehicles office. You will need to take a
written test and a behind-the-wheel driving test.
The following provides guidance for passing the written test:
•
You will be served much faster if you make a written test appointment online or by calling 1800-777-0133 during normal business hours.
•
You will need to complete application form DL-44 and submit the original DL-44 form. You will
also give a thumb print and have your picture taken. There is a small application fee.
•
You will be asked to provide your Social Security Number (see Social Security Number section
below). If you do not have a Social Security Number, state so on the application form and you
will still be allowed to take the test.
•
You will need to verify your birth date and legal presence (Norwegian passport and I-94 form).
•
You will need to pass a vision test and the written test on traffic laws and signs. Sample
written tests can be found online. You have three attempts to pass the written test before
beginning the process over.
The following provides guidance for the behind-the-wheel
test:
•
You should make a behind-the-wheel appointment
upon passing your written test
•
You will need to bring your own car, a borrowed car,
or a rental car that has proof of car insurance.
•
You also have three attempts to pass the behindthe-wheel test before beginning the process over.
After you pass the driving test, you will be issued a temporary license, which is valid for 60 days until
you receive your new photo license in the mail.
For further information: California Driver Handbook.
Page 4 of 14 San Francisco 2011 Gasoline Costs
The average gasoline price in San Francisco as of 3/29/2012 was reported at $ 4.398 per gallon.
Vehicle fuel efficiency matters greatly in the San Francisco Bay Area, where you may find yourself
driving long distances. Below is the distance measured in miles and kilometers between some key
locations:
Location
Distance
San Francisco to Palo Alto
33 miles (53 km)
Berkeley to San Francisco
13 miles (21 km)
Mountain View to San Jose
13 miles (21 km)
San Rafael to San Francisco
19 miles (30 km)
Car Ownership
Vehicles, auto insurance, and gasoline cost less in the U.S. than in Europe, particularly Scandinavia.
Buying a car makes most financial sense if you expect to be in the San Francisco Bay Area for at least
two years.
In the U.S. a brand-new 2010 Volvo V50 station wagon getting 30 miles per gallon starts at $33,000
(kr 186.700) plus roughly 10 percent tax. You can get a used 2008 Volvo V70 station wagon with
31,000 miles on it for $25,900 (kr 144.100) plus tax.
If you decide to buy a new car, go to any local car dealership, according to brand. When buying a car
from a licensed dealer you avoid the hassle of getting the right transaction papers, filling them out
correctly and going to the local California Department of Motor Vehicles office to register as new
owner, which typically costs between $200-$350. However, you will likely pay 10-30 percent more
with a licensed dealer than with an individual seller.
•
Craigslist: This site is one of the most used in the U.S. for private buyers and sellers, and is
not only excellent for finding housing but cars and many other goods.
•
Wheels & Deals: This company has several locations in the Bay Area. It is basically a parking
lot where owners can display their cars against a fee. Prices are often very good.
•
eBay: eBay, the world’s biggest internet auction site, offers a wide variety of new and used
cars from individual sellers and licensed dealerships. If you are not already familiar with eBay,
you need to spend some time understanding the rules before you engage in buying a car.
•
Cars.com: This site provides a useful search engine for used and new cars from individual
sellers and licensed dealers. Just type in your zip code and all listed cars near your location will
appear.
•
Scandinavians at Stanford: Many Stanford scholars and students leaving the area will have
furniture and cars for sale. One way to advertise if you want to buy or sell is to be a member
of Scandinavians at Stanford (SaS).
Page 5 of 14 San Francisco 2011 When buying a used car, always ask for the Vehicle Identification Number (VIN) before you decide to
arrange a meeting. All repairs, accidents, mileage and previous owners are recorded on a CARFAX
report linked to the VIN number.
The CARFAX report can be viewed online by entering the 17 digit VIN number. You must pay a pay a
fee of approximately $30 per car or $40 for unlimited checking for a month. The vehicle history
information is necessary to evaluate any used car and is strongly recommended before any purchase is
made. An alternative to CARFAX is AutoCheck, where you can view the vehicle history for used cars.
To determine the value a specific used car, Kelly Blue Book (KBB) provides you with free values and
pricing on new and used cars according to specific brand, age, mileage, and general condition.
Car Rentals
Car rental agencies can be found throughout the San Francisco Bay Area, and prices are most
expensive if rented at an airport. An economy-size rental car can be rented for approximately $30/day,
excluding insurance and gasoline costs. Unless you have insurance in Norway that applies or credit
card coverage (many major credit card companies cover certain rental car insurance), you will want to
purchase the Limited Damage Waiver and Collision Damage Waiver insurance options in the event that
your car is stolen or you crash it. The following are common car rental agencies:
•
Alamo
•
Avis
•
Dollar Rent
•
Enterprise Rent-A-Car
•
National Car Rental
Car Leases
Leasing a vehicle will be an appealing option for anyone in the San Francisco Bay Area for a known
period of time and with a credit history (read more under Banking). Through this option, a 2010 Audi
with a 28-month lease with 25 mile-per-gallon fuel efficiency can be driven for roughly $450/month.
Be sure to read how many miles are left on the agreement and be certain you will not need to break
the lease early.
Leasetrader.com is a good resource for taking over another’s lease; otherwise the car rental companies
above also offer long-term car leases.
Car Share
Car sharing is a popular alternative to car ownership, particularly for those who do not need a car for
work but need one on the weekends. Zipcar is a popular car sharing company that allows members to
reserve a variety of vehicles online or by phone minutes or months in advance. There is a plethora of
Zipcar locations throughout the city of San Francisco, for example.
Casual Carpool
Casual Carpool is a form of rideshare that has sprouted up in San Francisco and the East Bay. It is a
system built on trust, as an informal carpool forms from drivers and passengers meeting at select
carpool locations.
Page 6 of 14 San Francisco 2011 The driver benefits from being able to use carpool lanes or lower bridge tolls; the passengers benefit
from a fast, free ride, although casual carpool etiquette suggests passengers pitch in a dollar to the
driver.
Public Transportation
•
BART (Bay Area Rapid Transit): Rapid rail service to San Francisco and the East Bay. Fares
start at $1.75. An intermodal platform connects BART to CalTrain at the Millbrae station so that
a commuter can take CalTrain up the Peninsula and BART into downtown San Francisco or the
East Bay.
•
CalTrain: Rail service between San Francisco and San Jose. Weekday express trains serve
select stations during commute hours. Fares start at $2.50 and are based of a zone system.
Map of the various Zones and the accompanying costs can be found in the appendix
•
SamTrans: Bus system serves San Mateo County on the Peninsula as well
The system also links to BART and CalTrain stations. Fares start at $2.00.
•
VTA: Light rail and bus servicing Santa Clara Valley. Fares start at $2.00.
•
SuperShuttle: For airport travel only, this is a
popular shared airport shuttle that picks you up at home.
Biking
Biking is more common in San Francisco than you might expect given all the hills; however, there are
also many accidents involving cyclists. Bike-friendly towns in the Bay Area include Berkeley and Palo
Alto.
Page 7 of 14 San Francisco 2011 Miscellaneous Expenses
Food
Food prices in the U.S. seem very affordable in comparison to Norway. Then again, Norway ranks at
the most expensive on The Economist’s Big Mac Index. Note: the table below does not take into local
purchasing power.
2012 price of a Big Mac in the U.S.
$4.20
2012 price of a Big Mac in Norway (in dollars)
$6.79
Source: http://www.economist.com/blogs/graphicdetail/2012/01/daily-chart-3
It is reasonable to expect to pay at least $330 per month on groceries as a single individual, $440 as a
couple, and $550 as a family (this does not include dining out because of the range of prices). This
may be a gross underestimate for those who buy specialty food and drink on a regular basis.
Car, Home/Renters, and Health Insurance
It is very important to have car, home/renters, and health insurance in the U.S.
Auto insurance can be obtained with both American and European driver’s licenses depending on the
insurance company. However, if you have an American driver’s license, the insurance will often be
cheaper, starting around $120 per month depending on your driving record, vehicle value, etc.
Sometimes the best insurance deals are be found
by combining your auto insurance with home/renters insurance. Below is a short list of some major insurance companies that enable you to get a quote on
the internet: •
•
•
•
•
•
AAA
Allstate
Farmers
Geico
Mercury Insurance
Progressive
Norwegian health insurance does not apply in the U.S. As part of the 2010 health care reform in the
U.S., employers with more than 50 employees must provide health insurance or pay a fine. Many small
businesses can qualify for a healthcare bill reform tax credit. Independent individual or family
healthcare plans are available for a monthly fee, but make sure to understand the terms of the plan.
Most plans fall into two categories: Health Maintenance Organizations (HMOs) – which require most of
your healthcare from a network provider – or Preferred Provider Organizations (PPOs) – which contract
work out to a network of “preferred providers.” Open Access plans are a hybrid of HMOs and PPOs.
Page 8 of 14 San Francisco 2011 Dental or vision coverage is often separate from healthcare plans and may only be necessary for those
requiring more than the regular vision or dental check-up. The large healthcare providers in the San
Francisco Bay Area include:
•
•
•
•
Aetna (Open Access & PPO)
Anthem (HMO & PPP plans)
Blue Shield of California (PPO)
Kaiser Permanente (HMO)
Banking
Establishing a financial credit history is one of the first things you will need to do in order to proceed
with many of the services described below. Credit histories from other countries are not accepted in
the U.S. The first step to establishing a credit history is opening a bank account.
There are many other reasons for setting up a U.S. bank account, including:
•
Most U.S. companies demand a U.S. bank account for salary direct deposit.
•
Relying entirely on your credit card will only last so long, as most international credit cards
have a daily and monthly withdrawal limit (though this can be waived by your bank through a
prior arrangement).
•
Phone, internet, and cable subscription companies only accept U.S. bank accounts.
•
Only a few U.S. internet shopping sites accept foreign credit cards.
There are two main types of bank accounts:
•
Checking (with NO interest)
•
Savings (with interest)
Most people open a checking account first. When opening an account, make sure you understand the
banking terms, particularly with regard to minimum balance and overdraft facility. In most cases, it is
preferable to open an account with no minimum balance; otherwise you always have to maintain a
specified minimum amount on the account. An overdraft provision might be beneficial in some cases,
such as when a monthly salary is not received on time but all bills need to be paid on time.
You will want an ATM card linked to your checking or savings account to allow cash withdraw from any
ATM across the country at any time. Most cash withdrawals are capped at $300. In order to avoid a
service fee, it is best to withdraw from your bank’s ATMs. If you expect to travel across the U.S., it is
advisable to research the territory in which your bank operates.
Almost all banks require a Social Security Number or a Tax Identification Number in order to open a
bank account (see below for how to obtain a Social Security Number). If your Social Security Number
is being processed, you can request the bank to verify your passport and open the account with this.
Later, you will then have to inform the bank of your assigned number.
Some popular banks include:
•
Bank of America
•
Case Bank
•
U.S. Bank
•
Wells Fargo
Page 9 of 14 San Francisco 2011 Social Security Number
When living in the U.S., you need a Social Security Number (SSN), equivalent to the Norwegian
personnummer. This is also necessary in order to get your California driver license (see Transportation
section). You will need to wait 10 business days after entrance into the U.S. to apply for a Social
Security Number due to processing time to register your entrance. In order to apply for a Social
Security Number, you must file an Application for a Social Security Card (SS-5).
The form should be handed in at the nearest Social Security Office and it is free of charge. Additional
documents that need to be provided along with SS-5 are:
•
•
•
Immigration status: Passport and the I-94, Arrival/Departure Record, as proof of identity. The
I-94 is attached to your passport at entrance to the U.S.
Work eligibility
Second form of picture identification, e.g. Norwegian driver’s license
If you are an exchange visitor, you must provide your IAP-66, or DS-2019, Certificate of Eligibility for
Exchange Visitor (J-1) Status. If you are in the U.S. as a student or an international visitor, you will
also need an original, signed letter from your sponsor showing that you are authorized to work.
Note: You cannot apply for a Social Security Number if your U.S. visa does not allow you to work in the
U.S.
Utilities
Housing-associated utilities refer to electricity, gas, water, and garbage services, all usually billed on a
monthly basis. Electricity and gas is provided to the San Francisco Bay Area by Pacific Gas & Electric
Company. In May 2010, San Francisco consumers paid $0.239 per kilowatt-hour of electricity and
$1.22 per therm of piped gas. It is extremely difficult to approximate the cost of monthly PG&E bills for
a 1-bedroom apartment or 3-bedroom house since it all depends on the amount of energy consumed,
but costs will start at a minimum of $30 and $70, respectively. The average electricity and gas bill of a
San Francisco residence is over $100. There is also an initial hook-up fee.
Water and garbage service providers vary from city to city, but water costs average $40 and up and
garbage costs average $25 and up. Rent often includes the costs of water and garbage. Phone, Cable, and Internet Services
Before you make any commitments, make sure to spend some time investigating the different services
and deals provided by phone, cable, and internet companies. Also make sure to understand the
subscription length and any cancellation fees. Be prepared to pay several minor fees that are not listed
in the brochure. Depending on subscription type, these include:
•
Activation fee
•
Foreign phone usage fee (enables the phone to make and receive calls from foreign callers,
including text messages)
•
Value Added Tax (8.5 percent)
•
Cable modem/wireless router/HDTV converter deposit
If you bring your own phone from Norway, make sure it is tri-band compatible because the U.S. uses a
different GSM system than Europe.
Page 10 of 14 San Francisco 2011 You will need to buy a SIM card in the U.S. and then enroll in a phone plan. Most subscriptions consist
of a minute plan, or a pre-determined of minutes per month that you can talk for that start around $40
per month (if exceeded, higher rates apply). Be aware that minutes include both making and receiving
a phone call.
For short term phone solution, ask for a pre-paid phone plan. Depending on your phone selection, the
phone may cost anywhere from $10 up to $200, and you pay $2 a day for unlimited talking in the U.S.
Some popular prepaid service providers include:
•
•
•
GoPhone by AT&T
VirginMobile
T-Mobile
For international calls, you can purchase a pre-paid phone card from a range of online sites or use
Skype. This is a great way to keep in touch with friends and family back home. Skype is a piece of
software for your computer that allows you to talk to other Skype users free of charge. It is also
possible to buy “Skype out” credits and call regular telephones for the local fees.
Below is a list of the major phone companies in Silicon Valley:
•
•
•
•
AT&T: AT&T does also offer phone services incorporated in their internet deals.
Comcast: Comcast offers phone services as a part of their cable and internet package deal.
T-Mobile: Reception can be spotty in places like Stanford University. No deposit is required for
customers without a Social Security Number.
Verizon Wireless: Apple teamed up with Verizon for its iPhone 4 because AT&T kept having
service delivery problems.
If your residence is already wired for landline service, AT&T can arrange to activate your land phone
line for local and long distance calls. Other long distance carriers are MCI and Sprint. If your residence
is not wired for phone service, AT&T will install and maintain your wiring for a charge, or you can
arrange to have the wiring installed yourself.
Some companies offer three-in-one packages that combine cable TV, high-speed internet, and phone
services. Besides saving you money, a full package can lower the amount of monthly bills and make it
more manageable. You can choose from a wide selection of TV packages, from basic (80 channels) to
Premium or Gold (500 channels). High speed internet connection does also stretch from regular 128
KB per second (download and upload) to 8 MB per second (download and 1 MB upload). Be aware that
the 8 MB will really only give you 1-2 MB per second during peak hours. Due to state licenses, different
areas have different suppliers. Most of Silicon Valley is serviced by either AT&T or Comcast.
Schools
California is known for its exceptionally high quality university-level education as well as its sub-par
kindergarten-12th grade school system. There are two types of education systems, public and private.
Public schools are primarily funded by tax payer dollars, although tax payer funding has declined over
the past three decades.
Private schools, which include parochial schools, are primarily funded through tuition. If you, your
spouse/partner, or your children will be attending school in the San Francisco Bay Area, it is important
to understand how the school systems work before even arriving.
Page 11 of 14 San Francisco 2011 The San Francisco Bay Area is home to the highest ranking public university in the nation – UC
Berkeley – and one of the more elite private universities – Stanford University. These universities
contribute to companies’ continued innovation, and researchers and students are behind an unusual
entrepreneurial activity between universities and industry. In particular, Stanford University took an
early active role as a facilitator and investor of student and faculty start-ups. While many universities
have campuses in the greater Bay Area, the major universities you should know about are:
•
•
•
•
University of California,
University of California,
University of California,
(graduate level only)
University of California,
Berkeley
Davis
San Francisco
Santa Cruz
•
•
•
•
•
San Francisco State University
San Jose State University
Stanford University
Santa Clara University
University of San Francisco
If your child/children will be attending public elementary, middle, or high schools, your housing
location will determine the school so the quality of schools should play an important role in your
decision of where to live. This is key to understanding why housing prices might be particularly
expensive in a particular area, such as Palo Alto – which has arguably some of the best public schools
in California, if not the nation. When you have signed a housing lease or purchased a property, you
can go to the nearest school during the academic year or to the nearest School District Office during
the summer to sign your child up for school. You will need to show your children’s passports and proof
of your residency such as a utilities bill.
If your child/children will be attending a private school, bear in mind that private school tuition varies a
lot. A private elementary school annual tuition can range from $3,000 to $10,000 per child and a
private high school annual tuition can range from $15,000 to upwards of $20,000. Two schools in San
Francisco of interest to many Norwegian families include:
•
The French American International School
•
The Scandinavian School of San Francisco
For more information please contact:
Innovation House
470 Ramona Street
Palo Alto, CA 94301
www.innovationhouse.no
www.facebook.com/innovationhouse
Twitter: @innorhouse
Innovation Norway
20 California Street
San Francisco, CA 94111
Tel: +1 415 986 0765/0770
sanfrancisco@innovationnorway.no
www.innovationnorway.no
Page 12 of 14 San Francisco 2011 Appendix
Page 13 of 14 San Francisco 2011 CalTrain Fare Costs:
Page 14 of 14 San Francisco 2011