Landing in a new country can feel like a whirlwind, especially when you start juggling dollars, credit scores and tax rules. Before you unpack, let's get the money side sorted so you can focus on the excitement of a fresh start.
First thing: open a US checking and savings account. Choose a bank with low fees and easy online access – many chains let you set up the account from abroad with a passport and proof of address. Once the account is live, set up direct deposit for any salary you’ll earn. Direct deposit not only speeds up pay, it also builds a transaction history that banks love when you apply for credit later.
Credit works differently here. Your UK credit score won’t transfer, so treat your first US credit card as a fresh start. Apply for a starter card – often a secured card or a card from a bank where you already have an account. Use it for small, regular purchases and pay the balance in full each month. This simple habit will quickly boost your US credit score, which impacts everything from renting an apartment to car loan rates.
Speaking of loans, if you plan to buy a home or a car, know the typical US interest rates. A 30‑year mortgage at 7 % can add up to a lot over time, so shop around and consider a larger down payment to shave off interest. For a car, a 750 credit score usually lands you a rate under 5 % in 2025 – aim for that by keeping credit utilization below 30 %.
Budgeting is your safety net during the transition. Start with a simple monthly budget: list fixed costs (rent, utilities, insurance) and variable costs (food, transport, entertainment). A $4,000‑a‑month budget is a common reference point – adjust the numbers to match your city’s cost of living. Use a spreadsheet or a budgeting app; the goal is to see where every dollar goes.
Emergency funds matter more than ever when you’re abroad. Aim to keep three to six months of living expenses in a high‑yield savings account. Some US banks offer rates close to 7 %, which can make a real difference over time. If you have UK savings, consider transferring the bulk into a US account to avoid currency conversion fees, but keep a small buffer in the UK for any tax obligations you might still have.
Tax season will feel unfamiliar, but you don’t have to navigate it alone. The US taxes worldwide income, so any earnings you keep in the UK may need to be reported. A quick chat with a cross‑border tax adviser can save you penalties and help you claim foreign tax credits.
Investing? Start simple. If you’re comfortable with risk, a 70/30 split – 70 % stocks, 30 % bonds – gives growth potential while keeping some stability. Many US brokers let you open an account with as little as $100. Remember, the US also offers tax‑advantaged accounts like the Roth IRA – you can contribute after‑tax dollars now and withdraw tax‑free in retirement.
Finally, keep an eye on insurance. Homeowner or renter insurance rates can jump if your credit score dips, so maintain good credit habits. A deductible of $2,500 often balances premium costs and out‑of‑pocket risk – adjust based on what you can afford in an emergency.
Moving to the US is a big step, but with a solid financial foundation you’ll settle in faster and enjoy more of what your new life has to offer. Use this checklist, stay consistent, and watch your financial confidence grow alongside your adventure.
If you're moving from the UK to the US, your ISA doesn't vanish— but the rules around it definitely change. This article explains what you need to know before you pack your bags, from keeping your existing ISA to new tax headaches across the pond. We break down exactly what the US thinks of your ISA and share tips to avoid unpleasant surprises. You'll also learn whether you can keep saving and what happens if you come back. It's the practical guide every UK saver should read before making a move.
Read More >>