As an American student spending autumn in London for work experience, I knew it was going to be expensive, with a weak dollar adding to already high prices in the capital.

Now my friends back at Boston University want advice on where to shop, what to see and how to survive. The best advice I can give them is: bring much more money than you ever think you will need.

The “sticker shock” of buying groceries when I first arrived was palpable: my first trip to Sainsbury’s came to $150 (£71). A pint costs more than $6. For a student not making any money, let alone making any money in sterling, these sums are staggering. A weekly budget can bring tears to the eyes: $80 on food, $40 on Tube fares and, inevitably, an untold amount in that nebulous area known as “discretionary spending”, which can range from a night at the cinema to a drink with friends. Dinners in Soho are just too expensive to enjoy with any regularity.

Although the shock of paying $7 for a small coffee at Starbucks has worn off a little, the cost is still there.

I do enjoy London though. The people are friendly, occasionally; the Indian food is delicious; the historic sites and museums are inspiring; and the football fascinates me. However, I think, in a few weeks’ time, I will be glad to be back in the land of dollars, buying things in my native currency and knowing that even an overpriced coffee will cost me only $3.50.

Explore Economics

• Autumn Budget 2007

• Budget 2008

• World Economic Forum

• The Times MPC

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