How to Manage Your Finances for Studying Abroad

Know your financial management when exploring overseas education

Studying abroad is the dream of many, but this turns into a reality only for a few. Sometimes it’s the financial constraints, while seldom it is the qualification that becomes a barrier for a higher study aspirant. Those who are lucky to land in a foreign country often land in the situation of being broke in the middle of the month, which leads to cost-cutting, less food intake, increased tiredness, personal debts, other charges, and dissatisfaction. These consequences can wear out any person’s focus on his/her studies, which is the sole purpose they went. 

People often tend to ignore these basic amenities, leading to the misfortune of empty pockets with the remaining month staring at them. This situation doesn’t arise for those who are financially strong and have also paid their fees in advance, rather but pinches more for those who are studying on financial aid. Majorly, all abroad universities provide financial aid, in the form of scholarships, fee waivers up to 100%, and some metric criteria on percentile attainment. But to avail of this, students have to perform well enough to be in the cream layer of the list of selected students. Apart from that, letter of recommendation is a compulsion in the universities. This helps them to decide which student is well enough to represent the university keeping its prestige and legacy balanced and prospering positively.

Now, as we all have faced problems when it comes to money management and budgeting, here are some tips for those studying abroad who have the experience of empty pockets in the middle. 

10 Tips for managing finances when studying abroad

1. Create a monthly budget plan

Creating a monthly budget plan is essential for students studying abroad. Begin by listing all your anticipated expenses, including groceries, utility bills, transportation, rent, travel, recreation, and study materials.

Allocate specific amounts for each category based on your financial situation. Stick to your budget to avoid overspending and to ensure you can save some funds for emergencies. By managing your finances effectively, you can focus more on your studies and less on financial stress.

2. Utilization of student benefit cards and schemes

Almost all countries provide special discounts, waivers, and different schemes for students, but seldom do students know about them. They tend to be every student’s right, one he/she must be aware of. This should be the task of the government and different student bodies to let them know of their basic rights.

These discounts and credits help a student studying abroad in managing financial status throughout a month/quarter-year without being stuck in the even-break situation. 

Different government and privatized transport systems also support student discounts/waivers, helping and encouraging more and more people to study and not worry about travel costs.  

3. Getting passes for traveling or using bicycles

Apart from using travel discounts, students should also use travel passes, like subway/metro passes, bus passes, local train passes, and cab passes if available. However, this should only be opted for when the institute is far from the stay, which is not within walking distance. This helps in the budgeting of the travel costs, making it only a monthly expense, not a regular one. Apart from this, students, if possible can also opt for bicycles, to commute, ensuring a pollution-free, inexpensive, and fit way of traveling to places.

4. Understanding exchange rates

Exchange rates can be a real pain in the back, as they depend on the total import-export and the stock exchange, being variable. This leads to the miscalculation of the exchange rates followed by charges on it. This makes a dent in the desired money to be drawn out, leaving the person with less money than needed and more frustrated.

A person living abroad should keep the knowledge of exchange rates updated, the charges, and the closing rate. They should also keep a list of the days the home currency was less compared to other days. Then they will receive more than the usual amount. 

5. Understanding the withdrawal rules and policies

One of the common problems faced by students studying abroad is that they don’t know the bank rules withdrawal limits and charges. This leads to miscalculated extra money getting wasted in the exchange charges fixed by the bank alliances monitoring international monetary transactions.

One should be aware of these charges, and not waste a single penny. They must keep a spreadsheet maintaining what are the corresponding charges with the different bank ATMs, not leading to another mid-month financial crisis. Opting to be in touch with a financial expert can work wonders, as they can figure out ways to prevent over-expenses. 

6. Local bank accounts

Opting for an account in the local bank can also help in getting rid of those extra charges we have to pay unwillingly for the sake of intra-currency exchange, which tags along with the exchange rates. 

Local bank accounts deal in the nation’s currency the student is currently dealing in. All one needs to do is to transfer the money from the home bank account to the foreign local bank account, converting them at once, with no hassle of every monthly transfer. Also, they must ask their parents/guardians/benefactors to transfer the expenditure money in that account only, bearing the nominal inter-country costs themselves, so that they can provide a hassle-free transaction to their pupil/ward anytime he/she needs it.

7. Obtain Insurance

Medical expenses abroad can be quite costly, so it’s advisable to obtain insurance coverage for the duration of your stay as a student. Having comprehensive health insurance ensures that you are protected against unexpected medical emergencies, which can be financially devastating without proper coverage.

In addition to covering hospital and doctor visits, a good insurance plan can also include benefits such as prescription medication, mental health services, and emergency evacuation if needed.

8. Cooking food at home and staying healthy

Eating out can be a real unwanted expense, as the prices are very undesirable, while the urge to eat is not. This may be tackled by the cooking of food at home itself. Procuring fresh food and ingredients, making healthy food, and eating it. This is a much-preferred way, compared to eating out. You can control your calories in this way, and eat as much healthily as you want. 

One such advantage of not eating out is not falling ill. If you fall ill or even catch a cold, you will have to fish out extra expenses for doctors and medicines, which are often pocket-pinching. So one should cook healthy and energetic food to stay fit.

9. Cost of living

A person needs to have a good place to sleep, to eat, and to study. This often leads to misunderstandings, leading to residence-related over-expenses which can be a real mess. One needs to understand the financial crunch and has to act accordingly. 

Finding shared condos and apartments is a relief. Paying guests is also very common these days, covering the food, lodging, and all other extra costs in a single amount, which had to be borne by the students living in apartments themselves. 

10. Budgeting and Savings

Budgeting is a must in these students’ lives, as this helps in saving money from getting wasted on unusual and unwanted things one must never spend on. These help in maintaining the emergency fund, not leaving the student out of cash when in dire need.

One can also opt for part-time jobs during vacations, to fish out extra essential expenses. They have to maintain their travel-back-home expenses so that they have enough savings for any emergency. This is why it’s also said that one must save from the expenses and keep it aside for future emergencies or in times of dire need. These methods, when applied in a student’s life, can be a real financial aid to them. These situations tend to force them to become indebted for squabbles, making them lose attention from the sole purpose they went there for, studies. Students should keep their minds focused on studies only, not on how to get some dime to eat. 

Conclusion

In conclusion, budgeting while studying abroad is necessary for financial stability and a successful academic experience.

Students can better manage their finances by making an accurate budget, prioritizing costs, and taking advantage of student discounts.

Exploring part-time work, keeping an eye on currency exchange rates, and maintaining an emergency fund and insurance can all help you avoid financial stress.

With careful planning, students may concentrate on their studies while entirely enjoying their time abroad.