Simple Advice For Handling Your Finances Whilst Studying Overseas

How do you manage finances while studying abroad?

Managing finances while studying abroad requires careful planning and discipline, as you’ll be dealing with new expenses, exchange rates, and potentially higher costs of living. Here are some practical tips to help you manage your finances effectively while studying abroad:

1. Create a Comprehensive Budget

• Estimate Your Costs: Before you leave, research the cost of living in your host country, including accommodation, food, transportation, and other essentials. Factor in tuition fees, travel expenses, and any potential health insurance costs.
• Categorize Expenses: Break down your budget into categories such as rent, groceries, transportation, entertainment, and savings. Allocate a specific amount to each category.
• Track Spending: Use budgeting apps like Mint, YNAB, or a simple spreadsheet to track your expenses and ensure you stay within your budget.

2. Understand Exchange Rates and Fees

• Monitor Exchange Rates: Keep an eye on currency exchange rates, as they can fluctuate. Use apps or financial news sources to track changes and convert money when rates are favorable.
• Minimize Conversion Fees: Avoid frequent currency conversions, as banks often charge fees for these transactions. Consider opening a local bank account in your host country to reduce fees.

3. Choose the Right Bank Account

• Open a Local Bank Account: If you plan to stay for an extended period, consider opening a local bank account. This will help you avoid foreign transaction fees and give you easier access to your money.
• Use Student-Friendly Accounts: Some banks offer special accounts for international students with low fees and favorable terms. Research your options and choose an account that best suits your needs.
• Notify Your Home Bank: Inform your home bank about your travel plans to avoid having your account flagged for suspicious activity. Check if your bank has partnerships with banks in your host country, which can reduce withdrawal fees.

4. Be Smart with Credit Cards

• Use a No-Foreign-Transaction-Fee Card: If you need to use a credit card abroad, choose one that doesn’t charge foreign transaction fees. This can save you a significant amount on every purchase.
• Pay in Local Currency: When using your credit card, opt to pay in the local currency rather than your home currency. This avoids dynamic currency conversion fees, which can be expensive.
• Limit Credit Card Usage: Rely more on cash or a debit card for everyday purchases to avoid overspending and accruing debt.

5. Save on Accommodation

• Research Housing Options: Compare the costs of on-campus housing, off-campus apartments, and homestays. On-campus housing is often more convenient but may be pricier.
• Consider Sharing Accommodation: To reduce rent costs, consider sharing an apartment or room with other students. This not only lowers your expenses but also helps you make friends and adjust to the new environment.
• Check for Student Housing Grants: Some universities offer housing grants or subsidies for international students. Investigate if you’re eligible for any financial assistance.

6. Cook at Home and Meal Plan

• Save on Food Costs: Eating out frequently can quickly drain your budget. Learn to cook simple meals at home, which is often cheaper and healthier.
• Buy Groceries Wisely: Shop at local markets or discount grocery stores and look for student discounts or deals. Buying in bulk can also help reduce costs.
• Meal Prep: Prepare meals in advance to avoid the temptation of eating out when you’re busy or tired.

7. Use Public Transportation

• Get a Student Pass: Many cities offer discounted public transportation passes for students. This can be a cost-effective way to get around.
• Walk or Bike: If your campus and essential services are nearby, consider walking or biking instead of using public transportation or taxis. It’s a great way to save money and stay fit.

8. Apply for Scholarships and Financial Aid

• Research International Scholarships: Look for scholarships specifically for students studying abroad. Many universities and organizations offer financial aid to help offset the costs of international education.
• Check Eligibility for Grants: Some countries or institutions offer grants to international students based on financial need, academic merit, or specific fields of study.

9. Work Part-Time

• Understand Visa Regulations: Check if your student visa allows you to work part-time. If permitted, look for on-campus jobs, internships, or freelance opportunities that fit your schedule.
• Balance Work and Study: Ensure that your work commitments don’t interfere with your studies. Prioritize jobs that offer flexible hours or are related to your field of study.

10. Stay Insured

• Get Health Insurance: Health care can be expensive abroad, so make sure you have adequate health insurance coverage. Some countries require international students to have specific insurance plans.
• Understand Your Coverage: Know what your insurance covers and what it doesn’t, so you can avoid unexpected medical bills. Consider travel insurance for additional coverage.

11. Plan for Travel Costs

• Travel Smart: If you plan to travel during your time abroad, look for student discounts on transportation and accommodation. Use budget airlines, trains, or buses, and consider staying in hostels or using platforms like Airbnb.
• Book in Advance: Plan and book your trips well in advance to take advantage of early-bird discounts and avoid last-minute price hikes.

12. Avoid Unnecessary Expenses

• Limit Entertainment Spending: While it’s important to enjoy your time abroad, be mindful of your spending on entertainment. Look for free or low-cost activities like student events, cultural festivals, or exploring local landmarks.
• Say No to Impulse Purchases: Avoid buying souvenirs or non-essential items on a whim. Set a limit on your discretionary spending to keep your budget in check.

13. Seek Financial Advice

• Consult Your University: Many universities offer financial counseling services for international students. Take advantage of these resources to help manage your finances.
• Talk to Locals: Ask local students or your host family for tips on saving money and getting the best deals. They often know where to find the best bargains and how to navigate the local financial landscape.

14. Prepare for Currency Fluctuations

• Budget for Exchange Rate Changes: Be aware that currency fluctuations can affect your budget. Build a buffer into your budget to accommodate potential changes in the exchange rate.
• Use Currency Exchange Services Wisely: If you need to exchange money, use services that offer competitive rates and low fees. Avoid exchanging money at airports, where rates are typically worse.

15. Plan for Repatriation Costs

• Budget for Your Return Home: Don’t forget to plan for the costs of returning home after your studies, including airfare, shipping personal belongings, and any final bills or expenses.
• Set Aside Savings: Save a portion of your funds throughout your stay to ensure you have enough to cover your return journey and any post-study expenses.

Conclusion

Managing your finances while studying abroad requires careful planning, discipline, and adaptability. By creating a detailed budget, understanding local financial practices, and making informed choices about spending and saving, you can make the most of your international education experience without financial stress. Remember, the habits you develop while managing your finances abroad will benefit you long after you return home.

How can I get finance to study abroad?

Securing finance to study abroad can be challenging but achievable with the right approach. Here are some options to help you finance your international education:

1. Scholarships

• University-Specific Scholarships: Many universities offer scholarships specifically for international students. These can be based on academic merit, financial need, or specific talents (such as sports or the arts).
• Government Scholarships: Many countries provide government-funded scholarships for international students, such as the Fulbright Program (USA), Chevening Scholarships (UK), and Erasmus+ (Europe).
• Private and Non-Governmental Organizations: Numerous NGOs, foundations, and private organizations offer scholarships to students from specific countries or studying particular subjects. Examples include the Rotary International Scholarship and the Joint Japan/World Bank Graduate Scholarship Program.
• Country-Specific Scholarships: Some countries offer scholarships for their citizens to study abroad, such as the DAAD Scholarships (Germany), the Australia Awards, or the China Scholarship Council (CSC).

2. Grants and Fellowships

• Research Grants: If you’re pursuing graduate or postgraduate studies, you might be eligible for research grants from your home country, your host country, or international organizations.
• Field-Specific Fellowships: Certain academic fields, especially in STEM (Science, Technology, Engineering, and Mathematics), offer fellowships that cover tuition and living expenses.

3. Student Loans

• Government-Backed Loans: Some governments offer student loans for citizens studying abroad, such as the US Federal Student Loans or Canada Student Loans Program.
• Private Loans: Banks and financial institutions in your home country or host country may offer private student loans. Be sure to compare interest rates, repayment terms, and eligibility requirements.
• International Student Loans: Some companies specialize in providing loans to international students, such as Prodigy Finance, MPower Financing, and Global Student Loan Corporation. These loans often don’t require a co-signer but may have higher interest rates.

4. Savings and Personal Funds

• Family Savings: Many students use personal or family savings to cover the cost of studying abroad. If your family plans to support you financially, create a budget to determine how much you’ll need and for how long.
• Part-Time Work Savings: Consider working part-time or during school breaks to save money before going abroad. This can help reduce the amount you need to borrow or seek in scholarships.

5. Part-Time Work and Internships

• On-Campus Jobs: Many universities offer part-time work opportunities for international students, such as research assistantships, teaching assistantships, or jobs in the library or cafeteria.
• Off-Campus Employment: Depending on your visa, you may be allowed to work off-campus. Jobs like tutoring, freelancing, or internships can help cover your living expenses.
• Paid Internships: Some degree programs offer paid internships as part of the curriculum. These not only provide valuable work experience but also help you earn money while studying.

6. Crowdfunding

• Online Platforms: Crowdfunding platforms like GoFundMe, FundMyTravel, or Kickstarter allow you to raise money from family, friends, and even strangers to help finance your studies abroad.
• Social Media Campaigns: Use social media to share your crowdfunding campaign, telling your story and explaining why studying abroad is important to you. Be clear about how the funds will be used.

7. Sponsorships

• Corporate Sponsorships: Some companies sponsor students to study abroad, especially if the field of study aligns with their industry. In return, you may be required to work for the sponsoring company after graduation.
• Community Sponsorships: Local businesses, community organizations, or religious groups may be willing to sponsor a portion of your education, especially if you commit to giving back to the community in some way.

8. Education Savings Plans

• 529 Plans (USA): If you or your family have been contributing to a 529 education savings plan, these funds can be used to cover eligible expenses for studying abroad.
• Registered Education Savings Plan (RESP) (Canada): Canadian students with an RESP can use these funds for eligible educational expenses abroad.

9. Exchange Programs

• Study Abroad Programs: Some universities offer exchange programs where students can study abroad for a semester or year while paying tuition to their home institution, which can be more affordable than enrolling directly in a foreign university.
• Government Exchange Programs: Programs like Erasmus+ (for European students) or government-sponsored exchanges can cover part or all of your expenses while studying abroad.

10. Financial Aid from the Host Country

• International Student Grants: Some countries or universities offer financial aid specifically for international students, such as grants, bursaries, or tuition fee waivers.
• In-Country Scholarships: Once you’re enrolled, you might become eligible for scholarships or awards offered by your host institution based on academic performance or extracurricular involvement.

11. Military Benefits

• Veteran’s Education Benefits: In some countries, such as the United States, veterans and their families can use GI Bill benefits to cover the cost of studying abroad.
• ROTC Programs: Some military programs offer scholarships in exchange for a commitment to serve after graduation.

12. Research and Apply Early

• Start Early: Begin researching and applying for scholarships, loans, and other funding sources at least a year before your planned departure. Many scholarships and grants have early deadlines.
• Tailor Your Applications: When applying for scholarships or grants, tailor each application to highlight your achievements, goals, and how studying abroad fits into your long-term plans.

Conclusion

Financing your study abroad experience requires a combination of resources, including scholarships, loans, savings, and possibly part-time work. By researching your options, planning ahead, and applying to multiple sources of funding, you can make your dream of studying abroad a reality. Remember, persistence and early preparation are key to successfully securing the necessary funds.

How to budget as an international student?

Budgeting as an international student is crucial to managing your finances effectively while studying abroad. Here’s a step-by-step guide to help you create and stick to a budget:

1. Calculate Your Total Income

• Identify All Sources of Income: List all sources of income, including scholarships, student loans, savings, family contributions, part-time job earnings, and any financial aid.
• Convert to Local Currency: If your income is in a different currency, convert it to the local currency using current exchange rates to get an accurate picture of your available funds.
• Set a Monthly Income: Divide your total income by the number of months you’ll be abroad to determine your monthly budget.

2. List Your Fixed Expenses

• Tuition Fees: Include the cost of tuition and any mandatory fees associated with your education.
• Rent and Utilities: Factor in the cost of accommodation, whether it’s on-campus housing, an apartment, or a homestay. Don’t forget to include utilities like electricity, water, gas, and internet.
• Health Insurance: Include the cost of health insurance, which is often mandatory for international students.
• Transportation: Budget for transportation costs, including public transportation passes, bike rentals, or car expenses (if applicable).
• Phone and Internet: Account for your mobile phone plan and internet costs, which are essential for staying connected.

3. Estimate Variable Expenses

• Groceries and Food: Estimate your monthly food expenses, including groceries, occasional dining out, and snacks. Cooking at home is generally more cost-effective than eating out.
• Books and Supplies: Budget for textbooks, course materials, stationery, and other academic supplies. Look for used books or digital versions to save money.
• Personal Expenses: Include costs for personal care items, clothing, entertainment, and any other discretionary spending.
• Emergency Fund: Set aside a portion of your budget each month for unexpected expenses, such as medical emergencies or urgent travel.

4. Plan for One-Time Expenses

• Initial Setup Costs: Account for one-time expenses like buying furniture, kitchen supplies, or winter clothing if you’re moving to a new climate.
• Travel Costs: Budget for flights, visa fees, and any travel you plan to do during your studies. Remember to include trips home or vacations during breaks.
• Student Fees: Some universities charge one-time fees for things like orientation, gym access, or student organizations.

5. Use Budgeting Tools and Apps

• Budgeting Apps: Utilize apps like Mint, YNAB (You Need a Budget), or PocketGuard to track your spending and ensure you stay within your budget.
• Spreadsheets: If you prefer manual tracking, create a spreadsheet to monitor your income and expenses. Google Sheets offers free templates that you can customize.
• Bank Alerts: Set up alerts with your bank to notify you when you’re approaching your spending limits or if your account balance is low.

6. Monitor and Adjust Your Budget

• Track Your Spending: Regularly review your spending to see where your money is going and identify areas where you might be overspending.
• Adjust Categories as Needed: If you find that you’re spending more in certain categories, adjust your budget accordingly. For example, if transportation costs are higher than expected, you might need to reduce spending in another area.
• Review Monthly: At the end of each month, review your budget and make any necessary adjustments for the following month. This helps you stay on track and avoid surprises.

7. Save Where You Can

• Use Student Discounts: Take advantage of student discounts on everything from transportation to entertainment, software, and even groceries.
• Cook at Home: Cooking your meals is usually cheaper and healthier than eating out. Plan your meals and buy groceries in bulk to save money.
• Buy Used or Share: Purchase used textbooks or share with classmates. Look for second-hand furniture, clothes, and electronics instead of buying new.
• Limit Luxuries: While it’s important to enjoy your time abroad, try to limit spending on non-essential items like frequent dining out, expensive coffee, or unnecessary shopping.

8. Be Smart with Credit Cards

• Use Wisely: Only use credit cards for purchases you can afford to pay off in full each month to avoid interest charges and debt accumulation.
• Avoid Cash Advances: Cash advances on credit cards often come with high fees and interest rates. Use your debit card or local bank account for cash withdrawals instead.
• Monitor Your Credit: If you have a credit card, keep track of your credit score and avoid missing payments, as this can affect your financial future.

9. Plan for Currency Fluctuations

• Budget a Buffer: Exchange rates can fluctuate, so it’s wise to budget a little extra to account for changes that may affect your spending power.
• Use Local Currency: Whenever possible, use local currency for transactions to avoid dynamic currency conversion fees.

10. Seek Financial Advice

• University Resources: Many universities offer financial counseling services for international students. They can help you with budgeting, managing debt, and finding additional financial resources.
• Talk to Other Students: Fellow international students can provide valuable insights into managing finances in your host country. They may know about cost-saving opportunities or financial aid options.

Conclusion

Budgeting as an international student requires careful planning, tracking, and discipline. By understanding your income and expenses, using tools to monitor your spending, and making smart financial decisions, you can manage your finances effectively while studying abroad. Remember to review and adjust your budget regularly to ensure it meets your needs and helps you achieve your financial goals.

How do I arrange my abroad study funds?

Arranging funds for studying abroad requires careful planning and a combination of resources. Here’s a step-by-step guide to help you secure and manage your finances for international studies:

1. Estimate Total Costs

• Tuition Fees: Research the tuition costs for the program and university you’re applying to. These fees vary by country and institution.
• Living Expenses: Include accommodation, food, transportation, utilities, and personal expenses. Costs can vary significantly depending on the location.
• Visa and Travel Costs: Account for visa fees, airfare, and travel insurance.
• Health Insurance: Many countries require international students to have health insurance, which can be an additional cost.
• Study Materials: Include books, supplies, and any technology you may need (laptop, software, etc.).
• Emergency Fund: Set aside a small emergency fund for unexpected expenses.

2. Explore Scholarships and Grants

• University Scholarships: Check with the universities you’re applying to for any merit-based or need-based scholarships.
• Government Grants: Many governments offer scholarships for international students (e.g., Fulbright, Erasmus, or Commonwealth Scholarships).
• Private Scholarships: Look for scholarships from private foundations, non-profits, or organizations that support students in specific fields.
• Country-Specific Programs: Some countries provide scholarships to attract foreign students (e.g., Australia Awards, DAAD for Germany, Chevening for the UK).

3. Apply for Education Loans

• Student Loans from Your Country: Many banks offer student loans specifically for studying abroad. Look for options with low interest rates and favorable repayment terms.
• International Student Loans: In some countries, you may be eligible for loans as an international student, though they often require a co-signer or guarantor.
• Compare Loan Options: Compare interest rates, repayment periods, and eligibility criteria across various loan providers.

4. Personal Savings

• Plan Ahead: Start saving as early as possible by setting aside a portion of your income or allowances each month.
• Use a High-Interest Savings Account: Keep your savings in an account that offers a higher interest rate to help them grow over time.
• Family Contributions: Discuss financial support with family members, who may be willing to contribute to your study fund.

5. Part-Time Work and Internships

• Check Visa Regulations: Some countries allow international students to work part-time while studying. Verify if your student visa permits part-time work and how many hours you’re allowed to work.
• On-Campus Jobs: Universities often offer part-time job opportunities, like teaching or research assistant positions.
• Internships: Look for internships related to your field of study, as they can help cover living expenses and provide valuable work experience.

6. Crowdfunding and Sponsorships

• Crowdfunding Platforms: Some students use crowdfunding platforms like GoFundMe, FundMyTravel, or Indiegogo to raise money for their education abroad.
• Corporate Sponsorships: Some companies offer sponsorships in exchange for working for them after graduation, especially in industries like engineering, healthcare, and technology.

7. Budgeting and Financial Management

• Create a Study Abroad Budget: Once you’ve secured funds, create a detailed budget for your time abroad. Include tuition, living expenses, and any anticipated costs.
• Monitor Exchange Rates: Keep an eye on exchange rates, as currency fluctuations can impact your funds. Consider opening a local bank account to avoid high currency conversion fees.
• Track Spending: Use apps like Mint or YNAB (You Need a Budget) to track your spending and ensure you stay within your budget.

8. Seek Advice from Experts

• University Financial Aid Offices: Consult with the financial aid offices at the universities you’re applying to. They may have additional advice or funding opportunities.
• Educational Consultants: Seek guidance from consultants who specialize in international education. They can provide information on scholarships, loans, and other funding sources.

9. Consider Tax Benefits

• Education Loan Deductions: Some countries offer tax benefits or deductions on education loans. Check if your country allows you to claim interest paid on loans for studying abroad as a deduction.

10. Plan for Future Repayment

• Loan Repayment Strategy: Once your studies are complete, have a plan for repaying any loans. Look for job opportunities in the country where you studied, as some countries offer post-graduate work visas for international students.
• Evaluate Loan Repayment Terms: Check whether your loan repayment begins immediately or after a grace period and factor this into your post-graduation budgeting.

Conclusion

Arranging funds for studying abroad requires combining multiple funding sources like scholarships, loans, savings, and part-time work. Start early, research all your options, and create a budget that balances your educational and financial goals.

How much money is required in bank account to study abroad?

The amount of money required in your bank account to study abroad depends on several factors, including the country you’re applying to, the university’s requirements, and the specific visa regulations. Here’s a general breakdown of the key factors and country-specific guidelines:

1. Visa and Immigration Requirements

Most countries require you to prove that you have enough funds to cover your tuition and living expenses for at least the first year of your study. This is typically referred to as “proof of funds.” The exact amount can vary by country:

• United States (F-1 Visa):
  • Proof of Funds: You’ll need to show you can cover tuition and living expenses for at least one academic year. The cost varies by institution, but a rough estimate is:
  • Public universities: $20,000–$35,000 per year (including living expenses).
  • Private universities: $30,000–$60,000 per year (including living expenses).
  • Proof of funds can come from savings, education loans, scholarships, or family contributions.
• United Kingdom (Tier 4/Student Visa):
  • London: You must show you have £1,334 per month for living expenses, for up to 9 months (total: around £12,000), in addition to tuition fees.
  • Outside London: You need to show £1,023 per month for living expenses (total: around £9,200), plus tuition.
  • The required funds must be in your bank account for at least 28 consecutive days before applying for the visa.
• Canada (Study Permit):
  • For studying in Canada, you must show proof of funds for tuition fees and living expenses.
  • You’ll need at least CAD 10,000 per year for living expenses (CAD 11,000 in Quebec) in addition to tuition fees.
  • If you’re bringing a family member, you need an additional CAD 4,000 for the first dependent and CAD 3,000 for each additional dependent.
• Australia (Student Visa):
  • You must show you have at least AUD 24,505 per year for living expenses, excluding tuition fees.
  • If you’re accompanied by a spouse or child, additional funds are required: AUD 6,515 for a spouse and AUD 3,720 for a child.
  • Proof of funds can be in the form of savings, loans, or financial aid.
• Germany (Student Visa):
  • International students need to show they have at least €11,208 in a “blocked account” (Sperrkonto), which allows you to withdraw up to €934 per month for living expenses.
  • Some programs might have additional tuition costs, though public universities are often tuition-free for international students.
• New Zealand (Student Visa):
  • You’ll need to show NZD 15,000 for the first year of living expenses if your program is longer than 9 months.
  • For programs shorter than 9 months, you need NZD 1,250 per month.
• European Union Countries (Schengen Area):
  • Requirements vary, but you typically need around €7,000–€10,000 per year in a bank account to cover living expenses, in addition to tuition fees.

2. Tuition Fees

Tuition fees vary depending on the country, university, and program:

• Public Universities: Often lower-cost, especially in countries like Germany, France, and the Netherlands.
• Private Universities: More expensive, especially in the U.S., U.K., and Canada.
• Cost Range:
  • U.S.: $20,000–$50,000+ per year.
  • U.K.: £10,000–£38,000 per year.
  • Canada: CAD 15,000–CAD 40,000 per year.
  • Australia: AUD 20,000–AUD 45,000 per year.
  • Germany/France: €0–€20,000 per year (public universities are often free or low-cost).

3. Living Expenses

Living expenses depend on the city and lifestyle. Major cities like London, New York, Sydney, or Toronto have higher living costs compared to smaller towns.

• U.S.: $10,000–$20,000 per year.
• U.K.: £9,000–£15,000 per year.
• Canada: CAD 10,000–CAD 15,000 per year.
• Australia: AUD 20,000–AUD 25,000 per year.
• Germany/France: €7,000–€12,000 per year.

4. Health Insurance and Other Costs

Many countries require international students to have health insurance, which can add to your budget:

• U.S.: $500–$2,000 per year.
• Canada: CAD 600–CAD 1,000 per year (depending on the province).
• Germany: Around €110 per month for health insurance.
• Australia: AUD 500–AUD 700 per year.

5. Loans, Scholarships, and Financial Aid

If you can’t cover all expenses through personal savings, consider:

• Education Loans: Many banks and financial institutions offer student loans for international studies. These loans often cover both tuition and living expenses.
• Scholarships: Many universities, governments, and private organizations offer scholarships. These can significantly reduce your financial burden.
• Assistantships or Work-Study Programs: Some countries and universities offer part-time job opportunities or assistantships to help you earn money while studying.

6. Currency Exchange Rates

Consider the impact of exchange rates, as fluctuations can affect the value of your funds. To avoid risks, some students open local bank accounts in the destination country or use international banking services.

Conclusion

The amount required in your bank account to study abroad varies by country and program, but generally, you need to show proof of funds to cover both tuition and living expenses for at least the first year. On average, you may need $20,000 to $50,000 or more in your account, depending on the destination and institution. Be sure to research specific visa and university requirements for accurate estimates.