Financial Management for Studying Abroad

The essence of studying abroad is to have a unique experience, get an education of a high quality for a given period, and make unforgettable memories. However, financial control in a different country can prove difficult for most international students. Every detail, such as how to change money to local currency and how much money should be set aside for meals, laundry and other incidental expenses, should be properly arranged to avoid stress. Below are some helpful guidelines that will assist international students in properly managing their finances while studying abroad.

1. Currency Exchange Rates

Foreign exchange rates can greatly affect your spending while studying abroad. Helpful tips are:

Research and Compare Rates: Use social media to learn about the exchange rate and determine the right time to change money.
Avoid High Fees: It is useful to open international student-friendly bank accounts like Wise or Revolut, which are cheaper with exchange fees.
Carry Multiple Payment Options: It is crucial to have cash, debit, and credit cards to meet various scenarios without incurring high charges.

2. Realistic Budget

A balanced budget is the key to financial planning when studying abroad. This is where to start:

Expenses List: Sort your spending into two categories variable like food, transportation, etc., and fixed like rent, tuition, etc.
List Your Expenses: Subcategorize your expenses into fixed (tuition, rent) and variable (food, transportation) costs.
Set Limits for Non-Essentials: Set limits for entertainment activities so as not to spend too much money.
Use Budgeting Apps: One can track their spending using mobile applications like Mint, YNAB, and even Microsoft Excel’s Google Sheets.

3. Accommodation

Accommodation is one of the largest cost factors for overseas students. Here are a few strategies to save:

Select Shared Housing: Split the price of renting a home or apartment with other students.
Consider University Housing: Dormitories are cheaper and much nearer to the University.
Explore Homestays: Staying with a host family can be cheaper and allow cultural exposure.

4. Food Expenses

There are also ways to cut costs on food:

Home Cooking: Prepare meals at home rather than dining out. This is far less expensive and healthy.
Shop at Local Markets: Get fresh food and groceries from local shops for better prices.
Take Advantage of Discounts: Students can get a better discount on student cards from many restaurants and supermarkets.

5. Transportation

When calculating transportation expenses, keep the following in mind:

Get a Travel Pass: In many cities, buses, trains, or subways offer special student discounts.
Walk or Bike: Traveling short distances on foot or by bicycle can reduce your spending and increase your well-being.
Carpool: For long-distance travel, share cars with friends.

6. Scholarships and Part-Time Jobs

Make extra money or apply for financial help to offset your costs.

Apply for Scholarships: Many universities and organizations award scholarships to international students. It pays to research and apply early for selection.
Work Part-Time: Considering the visa restriction, it is wise to work part-time either at our school or in nearby companies.

7. Living Habits

Small lifestyle adjustments can result in significant financial savings:

Avoid Luxury Spending: Emphasize experiences rather than luxury things.
Look for Free Activities: Attend free campus, visit museums or go outside for a walk.
Limit Subscriptions: Eliminate subscriptions like Netflix or other media streaming services if you do not frequently use them.