Most people are a little surprised when they find out that the national currency of Ecuador is the US dollar. I did a little research on the topic and found that Ecuador began using US currency in 2000 to help stabilise their economy.
But probably the most surprising thing about the US currency in Ecuador is the popular use of the US Sacajawea dollar coin and the fifty-cent piece. When the dollar coin was introduced in the US, it quickly died in popularity. Now it seems most of these coins have ended up in Ecuador! I do not recall using the fifty-cent piece other than with the tooth fairy back home in the US.
Of course, using US currency is a big plus for those who have moved to, or are planning to visit Ecuador, but I have found that using the dollar coin is also a big plus when you live in the damp coastal areas. In Ecuador, it is very difficult to turn in our used ripped or damaged bills, even the banks reject money that has been torn, so the use of coins makes it easier to keep your money safe and undamaged. The damp salt air can be hazardous to your paper bills! Ecuador is a cash based society, so carrying around a credit card is useless unless you go to a major city or a shopping mall. The nearest mall to us is about an hour's drive away and the nearest major city is Guayaquil, about 2 1/2 hours away.
Now to address the other burning questions regarding the cost of living in Ecuador. I mentioned in a previous post that the cost of living here is much lower than in the United States and now that we have lived here for three months, I can give some detailed examples. Our internet, which is comparable to the service we had in Henryville, Indiana is $35 a month. It's not super fast, but it meets our needs. Milton, from the internet company, comes around to the house on his motorcycle to collect our internet fee each month. Directv is roughly $7 a week. You can go to the local hardware store and prepay for Directv service. Gasoline is $1.48 a gallon. Ecuador is a member country of OPEC and the price for gasoline has remained steady for some time. Our house in completely electric and we pay about $35 per month for electricity. The company puts the bill in the slats in our front gate each month and we pay at the local CNEL office in Manglaralto. The billing works the same for our water as well. We pay about $15-20 per month, but we have a pool to maintain so I am sure it's lower for others. We also buy bottled water for drinking purposes at $2 for a 5-gallon jug. This lasts us about a week and a half because we work hard to stay hydrated. It's very easy to get sick in the tropics if you don't drink lots and lots of water. I carry water with me almost everywhere I go.
Perhaps the biggest change in our spending compared to living in the US is the amount we pay for food. We try to go to the big grocery store for staples about once a month. We mostly buy cleaning supplies, pet food, toiletries, frozen meat, and basics like sugar and flour. Then every few days at home in Manglaralto, we go to the local tiendas (shops) for fresh fruits and vegetables, eggs, and bread. We walk to the nearby town of Cadeate for our bread as it is known for its bakeries. We will also buy a whole chicken in Cadeate as well. Now that the shop owners know us and realise we live here, the prices have dropped and I believe we may be getting the local prices for things. All in all, our grocery bill has been cut by at least half from when we lived in the US. The following is a photo of some produce we bought a week ago. We paid about $3.60 for all of the items in the picture.
We have a fish vendor come to our door about twice a week on his motorcycle with huge fresh shrimp and fish, which he will fillet for us. The shrimp are about $7.50 per pound for the large ones and a whole fish can cost about $30, but that will feed us for about four meals.
Eating out at a restaurant is also super cheap. We have had delicious meals for no more than $10 an entree. Lunch specials are usually about $3. There are lots of choices as well. We have a favorite Peruvian restaurant, a pizza place, sushi, Italian, Thai, Asian, etc....There are many choices; however, there are no fast food restaurants in our area. We really haven't missed that, though.
Another added bonus of eating fresher foods and walking to go shopping is that we have lost a bit of weight. Both Bill and I are now having trouble fitting into the shorts we brought with us. I see a shopping trip for clothes in our near future.
There is also an increase in "gringo" products coming to our area. Many people from the US and other countries come to Ecuador and share their speciality foods. We have a French baker in the nearby town of Olon, a Russian couple started a cheese, beer, and bread store also in Olon, and a brewery in Montanita makes really good beer and ciders.
The cost of medical care and medicine is probably the most amazing difference here in Ecuador. In the US, I took a prescription and even with my insurance co-pay, had to pay $50 a month. I can get ninety days of the exact same medicine at the local farmacia (pharmacy) with no prescription for $16! Bill had to make a quick trip to the emergency room two months ago after fainting, and the cost was absolutely free. We did pay $21 for the medicines that the doctor suggested he take. Once we obtain our residency, we will be able to get health insurance for about $80 per month. When we turn 65, our health care will be free. You can find many doctors who can speak English as many have been trained in the US. You can search the internet for many first-hand experiences regarding health care, elective surgeries, and other health care topics, but so far, our experiences have been very positive.
On the flip side (I have to tell the whole truth, after all!), there are several categories of consumer goods which are quite expensive in Ecuador. Cars are cost prohibitive. Importing your own car can cost double the value of the car by the time you add import taxes. Buying a car in Ecuador limits the brand of car you can choose. We see lots of Hyundai, a few Toyotas, and Chevrolets, and Great Wall, a Chinese-made car. Bill and I decided that since the cost of buses and taxis is very cheap, and both systems are readily available, we are going to go without a car. We are delighted to have no car payments, insurance issues, taxes, or repairs to pay for. So far it been a great decision (see the previous paragraph about weight loss!).
Appliances also tend to be quite expensive here as well. You are also very limited to the brands which are offered. Computers and televisions are very expensive. We stopped by a computer/appliance store last weekend and the price of a laptop on a payment plan was going to be over $2000! Recently Ecuador signed a trade agreement with Europe and there is hope that appliances and technology prices will drop.
Finally, I'd like to comment a little on income in Ecuador. Along the coast, the average salary for a worker is about $20 per day. We've met people who clean houses, make concrete blocks, sell popsicles on a bike, wash clothes, landscape, clean pools, run restaurants, work in a hospital, guard banks, ...you name it. And even though the average wage is VERY different here in Ecuador than in the US, most every person we've met seems happy, has pride in his job, and has a smile and a wave for us.
Even though no one makes a huge amount of money here and water can be in limited supply due to a recent drought, the Ecuadorian people have a tremendous amount of pride in their appearance and their possessions. Mothers work hard to keep their families' clothes spotless, taxi drivers are constantly wiping down their cars, and the local tienda owners are busy keeping their shops tidy. A retired friend of ours loves to use the word "tranquilo" when describing his life here in Ecuador. I think that perfectly sums up the country we are growing to love more each day.
