The "Cost of Living" refers to the amount of money needed to maintain a certain standard of living in a specific area. This includes expenses like housing, food, transportation, and healthcare. For example, living in a big city like New York can be much more expensive than living in a smaller town, as rent and grocery prices vary widely. Understanding the cost of living is important for budgeting and financial planning. It helps individuals and families determine how much they need to earn to cover their basic needs. Tools like cost of living calculators can help compare expenses between different locations, making it easier to make informed decisions about moving or job opportunities.