So, I was researching the US minimum wage because a friend is thinking about moving there, and I found some pretty interesting things I thought were worth sharing.

The first thing that caught my attention: in the US, there isn't a single minimum wage like here in Brazil. The federal rate has been $7.25 per hour since 2009 (that's right, frozen for over 15 years), but each state can set its own. So you have people earning $7.25 in some states and others earning up to $17.50 in Washington, D.C. It’s quite different from what we have here.

Talking numbers: if you work 40 hours a week at the federal minimum wage, that’s around $1,160 per month. Converting to reais (with the dollar at around 5.20), that’s about R$6,000. It seems like a lot when you look only at the number, but that’s where the catch comes in.

The most developed states have much higher rates. California is at $16.50 per hour, Washington at $16.66, and New York varies between $15.50 and $16.50 depending on the region. But guess what: these same states have the most expensive rents in the country. In Washington, D.C., the minimum wage is the highest ($17.50), but a basic rent easily costs around $1,600 to $1,800.

Who earns this amount? Mainly folks working in restaurants, fast food, supermarkets, cashiers—entry-level jobs. It’s important to remember that those working with tips can earn a much lower base because tips supplement their income.

Now, the real deal about living on minimum wage in the US: in most places, it’s practically impossible. The cost of living without rent alone is around $1,185 per month, and when you add rent, internet, transportation, and other bills, that $1,160 simply doesn’t add up. Even in states with higher minimum wages, the cost of living keeps pace.

Comparing to Brazil: our minimum wage is R$1,518, and in direct reais, it seems much less than the $6,000 converted from the American figure. But when you analyze what you can actually buy with that money in each country, the story changes a lot. One dollar in the US buys fewer things than what you can get with the equivalent amount in reais here. Also, everything there is decentralized among states and cities, whereas here the federal government sets a single rate for the entire country.

The point is: if you’re thinking about moving to the US and will depend on minimum wage, it’s best to research carefully which state you’ll go to because the difference is huge. California, New York, and Washington offer higher wages, but you’ll spend almost everything on housing. Smaller states might have the federal minimum wage, which makes the finances even tighter.

This decentralization of the US minimum wage is very characteristic of the American system itself, quite different from how it works here.