8 Tips to Manage Your Finances While Studying Abroad

As a student preparing to embark on an international study adventure, managing your money effectively is critical to ensuring a successful experience abroad. Between tuition, travel, and living expenses in an unfamiliar place, costs can quickly add up and spin out of control if you’re not careful. ‘How to manage money in abroad?’ is a question that resides in every international student’s mind.

However, with some prudent planning and smart habits, you can gain control of your finances and make the most of this opportunity. In this MSM Unify blog, we provide eight clever ways for students to handle money wisely while studying overseas. 

Also read: How To Save Money To Study Abroad?

By following these useful tips, you’ll find yourself in a much better position to enjoy this formative experience without undue financial stress or hardship. Dealing with money will get easier when these tips! The key is starting with the right mindset and approach before leaving home.

Set a budget before your study abroad trip

To avoid financial headaches during your study abroad trip, set a comprehensive budget before leaving home. First, research the cost of living in your destination country and city. Compare prices for housing, food, transportation, and entertainment to get an idea of expenses. Talk to others who have studied abroad in the same location. Their insights can help determine a realistic budget.

Next, calculate your income sources, like student loans, scholarships, personal savings, and parental support. Make sure you understand the details of when and how much funding will be available to avoid surprises. If needed, look into ways to supplement your income through part-time work, freelancing, or tutoring. Major expenses are:

Leave room for unforeseen expenses 

Leave room in your budget for unforeseen costs and currency fluctuations. Meet with a financial advisor to review your budget and look for any unnecessary expenses you can reduce or eliminate.

With diligent planning and budgeting before studying abroad, you can gain this enriching experience without accumulating debt or financial hardship. Careful management of your funds will help ensure you enjoy this opportunity of a lifetime.

Open a bank account in your host country

To avoid unnecessary fees and ensure convenient access to your money while studying abroad, opening a bank account in your host country is highly recommended. Do Your Research

Research banks in your study abroad location ahead of time to compare services, fees, and requirements. Look for banks with English services, low or no monthly fees, and ATM networks that refund fees. Check if they accept foreign customers and what documentation they need to open an account. Here are the documents you need to open a bank account as an international student:

• Passport
• Student visa
• Form I-20 or DS-2019 (Certificate of Eligibility for Nonimmigrant Student Status)
• Proof of enrollment in a U.S. educational institution
• Local address (proof of residence, such as a lease agreement or utility bill)

Be mindful of your cards

Not all cards are ideal for international use. Debit cards can be riskier as fraudsters have direct access to your bank funds. Credit cards offer more fraud protection. Visa and Mastercard are the most widely accepted, while American Express is less common outside the U.S. Know which merchants accept your cards before relying on them.

Determine how much you can afford to spend each week using your cards. Track all transactions to avoid overspending, which is easy to do in the excitement of travel and with the temptation for impulse buys. Record each expense in a budgeting app as you go to stay on track.

Look for Student Discounts

As a student studying abroad, you will want to take advantage of any available cost savings. Many places offer student discounts for those with a valid student ID. Be sure to ask the places you frequent if they offer a student rate or discount. Some tips for taking advantage of student discounts:

• Carry your student ID with you at all times This is typically required to receive the discount.
• Ask about student discounts at places you visit frequently. Many smaller local spots may offer student rates even if not advertised.
• Search online for ‘student discounts’ along with the city and country you will be studying in. You may find additional deals and promo codes to use.
• See if any of your credit or debit cards offer additional student discounts or cash-back incentives. Some cards target college students and may provide extra perks.
• Buy an International Student Identity Card (ISIC). This card provides access to over 150,000 discounts in over 135 countries for a small fee. It can quickly pay for itself if used regularly.

Also read: 10 Tips To Help You Save Money From Your Allowance

Get a part-time job

Consider finding part-time work while studying abroad. Not only will it provide you with extra income, but it is also an opportunity to gain valuable work experience in another country and immerse yourself in the local culture.

Part-time jobs for students typically include:

• Waiting tables or bartending at a restaurant
• Tutoring other students in English or other subjects you excel in
• Retail work at a store or shop
• Freelancing online as a writer, translator, or tutor

When looking for part-time work, check websites aimed at students and expats, like Student Jobs, ERIC, or Indeed. You may need a work permit, so check with immigration authorities about requirements and any restrictions on hours or type of work allowed.

Save on accommodation

Accommodation is often one of the biggest expenses while studying abroad. Look for cost-effective options such as shared apartments, student residences, homestays, or other alternative accommodations like backpacker hostels. Consider the location, rent, and amenities when making a decision. Additionally, try to negotiate rental prices or explore options for part-time work in exchange for reduced rent. Read on ways to save money on rent. 

Monitor currency exchange rates

If you need to transfer money from your home country to your study destination or vice versa, keep an eye on currency exchange rates. It’s important to choose the most favorable time for making transfers and consider using reputable online platforms or banks that offer competitive rates. Remember that exchange rates can fluctuate, so it’s wise to stay informed before making any transactions. By regularly monitoring currency exchange rates, individuals can make informed decisions regarding money transfers between their home country and their study destination.

After reading through various tips to handle your money wisely while studying abroad, you should now feel equipped to make prudent financial decisions during your time overseas. By creating a realistic budget, opening a bank account, using credit cards strategically, and keeping track of exchange rates, you can avoid costly mistakes and focus your energy on this exciting life chapter. Learn on 8 money mistakes to avoid. 

While the experience of studying in another country will no doubt expose you to new cultures and ways of living, maintaining financial stability provides peace of mind. With some forethought and discipline, you can gain invaluable life experiences through study abroad programs without creating lasting financial regrets. The time you spend immersed in another culture will shape you in ways that persist long after returning home.