Countries like the United States, United Kingdom, Australia, and Canada are dream study destinations of many but some leave this dream behind in fear of expenses that come along with it. But what if we say that you can plan your study abroad journey on a budget and keep your dream of studying abroad intact? Scholarship, education loans, and fellowships can largely take care of your tuition fees and you can get a part-time job or internships to meet your daily expenses. One prominent skill you need to learn in your study abroad journey is the art of managing money well and using it in a positive way. In this blog, we will be telling you how to manage money while studying abroad!
This Blog Includes:
- How to Manage Money While Studying Abroad?
- Be careful of the college costs
- Learn about the foreign currency
- Get into a habit of making a budget
- Open your local bank account
- Time to learn some cooking
- Look for cheaper accommodation
- Use credit cards but with care
- Look for cheaper phone call services
- Be smart and spend like a local
- Cycle it out, guys!
- Get a side job and manage your expenses!
How to Manage Money While Studying Abroad?
Let’s discover some amazing financial tips and tricks to know how to manage money while studying abroad as an international student:
Be careful of the college costs
Our first tip for how to manage money while studying abroad is to be careful and consider the college costs. Do your homework ahead of time to check whether you qualify for any financial help or scholarships. Additionally, in addition to the initial scholarships, some institutions provide rewards for outstanding students in the form of cash or allowances. Aim to perform your best in school so that you are eligible for such rewards. Apart from tuition, books and supplies are costly, so seek used or online books on Amazon, Chegg, and other sites. Even better, consider becoming a member of the local library or weekly book or flea markets, where you can buy books/second-hand books at a stealer price.
Learn about the foreign currency
Our first tip for how to manage money while studying abroad is to grab and inculcate knowledge about foreign currency and foreign exchange. People frequently compare the price of a product in India and convert the amount in foreign currency incorrectly. Prices don’t work that way across borders! You can’t expect apples in India to be the same price as apples in New York. Sure, some items are cheaper here than they are elsewhere, but the opposite is also true. Inflation acts differently in each economy, therefore it’s important to know the basic economic and financial indicators of the country you’ll be studying in.
Get into a habit of making a budget
Exploring, food, accommodation, transport, international student lifestyle, and other expenses consume a significant amount of money from your funds when you go overseas for your study. Because the amount saved seems to be substantial, most of us do not bother to spend it on minor things. And it is here that many students make critical mistakes. It’s essential to understand your present financial situation and create a realistic budget plan and always get into a habit of budgeting. Include items such as monthly rent, energy bills, groceries, transportation, data charges, recreation, study materials, and travel in your budget. It’s a good idea to set aside some money each month for unforeseen circumstances or emergencies.
Open your local bank account
The next pro financial tip on how to manage money while studying abroad is of opening a local bank account in the foreign country where you are studying. Whatever you do, don’t rely on your home bank account for anything since the bank costs will be expensive. When you arrive, it’s a good idea to create a local bank account to keep your money safe and make it easier to access your funds. It is almost compulsory in many countries.
Psst!! For students in Germany, there is a blocked bank account that only releases a specific amount of money each month, which is considered the monthly cost of living. This helps in the control of your spending.
Time to learn some cooking
Learn to cook—one of the most useful how-to manage money while studying abroad is advice you can receive. It not only inculcates discipline in your lifestyle, but it also allows you to save a significant amount of money. When you have to plan out every meal on your own, ordering food and eating takeouts is not the solution. You can plan your dinners for the entire week for less than the cost of 2-3 takeouts by preparing a handful of recipes in huge amounts on weekends. You may also personalize your diet and live a healthy lifestyle by cooking for yourself.
Look for cheaper accommodation
One of the major concerns for foreign students is finding a place to live. Outside of your university tuition cost, you must hack your way into the greatest available accommodation for yourself. Living off-campus is less expensive than living on a university campus, assuming you find the right place. You can also opt to live with many housemates, reducing your rent significantly.
Use credit cards but with care
This is a possibly dangerous yet useful hack, so proceed with caution! Credit cards are a popular way to save money while also establishing credit with institutions. Every credit card has a spending limitation or limit that you can spend and then pay back to the bank. So, here’s one of the best ways to save money while studying abroad financial advice for international students: to obtain credit cards that pay you back when you use them. These rewards can take the shape of cash or points, which can then be redeemed for fantastic deals and save you a lot of money. You may also acquire an airline credit card, which allows you to collect ‘air miles,’ which you can use to earn big discounts on your travel tickets.
Look for cheaper phone call services
If you’re a student studying abroad, you’ll need to call both locally and internationally. As a result, if you don’t pay attention, your phone bill will quickly skyrocket. While there are free online calling apps such as Google Duo, Whatsapp, Skype, and others, these apps require mobile data or WiFi, which isn’t always available. The greatest way to save money when studying abroad is to carefully use low-cost phone services and select the finest deals. You’ll be surprised at how much money you save on calls to your home country when you use services like Rebtel, GoogleFi, and others.
Be smart and spend like a local
This is probably one of the major things we tend to ignore while finding ways for how to manage money while studying abroad. Be aware of how the locals manage their monthly costs at job, university, or at your student residence. You’ll learn how to travel around the city without breaking the bank at farmer’s markets, and you’ll discover department shops that sell household basics at wholesale costs. When it comes to toiletries and cooking equipment, stock up for the month because buying in bulk is usually more cost-efficient.
Cycle it out, guys!
If you’re studying abroad, you’re probably living within a 2-kilometer radius of college, if not on campus. As a result, riding your bike to college makes it logical. You won’t have to wait for the bus every day, you won’t have to pay for cabs if you miss the bus, and you won’t have to walk as much. In many Western nations, bike parking and bike lanes are available on city streets. And, you know what? You’ll be helping the environment as well!
Get a side job and manage your expenses!
Our last and final pro financial tip on how to manage money while studying abroad would be to get a part-time job. In most countries, you can work up to 20 hours per week during term breaks and full-time during the rest of the year. Simply determine whether your student visa allows you to work and seek employment accordingly. This additional money might help you better manage your costs while also improving your job abilities. Just keep in mind that you may be required to pay tax on your earnings, so verify the rules for foreign students in your new country.
We hope this blog covered all the aspects of managing money while studying abroad. If you still have doubts regarding finances while studying abroad, reach out to experts at Leverage Edu. We will definitely help you out!