Studying abroad is an exciting thing, but managing your finances as an international student can be a new challenge.
Between tuition, daily expenses, and a currency that might feel a bit unfamiliar, money matters can sometimes feel overwhelming.
Let’s go through some practical and easy-to-follow tips on budgeting, saving, and spending wisely.
Key Takeaways:
• Start with a basic budget covering income, fixed, and variable expenses.
• Use student discounts and low-fee services to cut costs.
• Building an emergency fund can be a safety net for unexpected expenses.
• Review and adjust your budget to stay on track without sacrificing social fun.
Setting Up a Budget: Your Essential First Step
The first step to financial independence is creating a budget.
It doesn’t have to be complicated.
Just a simple breakdown of how much you’ll need each month for essentials like rent, food, and transportation, and a bit for savings.
1. Calculate Your Monthly Income and Expenses
- Income: For most international students, income is limited to a part-time job, a monthly allowance from family, or scholarship funds. Calculate exactly how much you expect each month so you’re clear on what you have to work with.
- Fixed Expenses: This includes things like rent, utilities, and health insurance. These will stay more or less the same each month, making them easy to budget for.
- Variable Expenses: Groceries, entertainment, transportation, and clothing. These can vary each month, so it helps to be mindful of them.
When you write this out, you’ll have a clear sense of where your money needs to go—and where you might be able to save.
2. Use a Budgeting App for Tracking
Digital tools make tracking your spending easier than ever. Apps like Mint, PocketGuard, and YNAB (You Need a Budget) can help by automatically categorizing your expenses. This is especially useful if you don’t have a lot of time to write everything down.
Finding Affordable Housing Options
Housing is usually the largest expense for international students, so finding an affordable place to live can really make a difference in your budget.
1. Look for On-Campus Housing or Shared Apartments
On-campus housing is convenient and often cheaper than private rentals. Alternatively, sharing an apartment with other students can help lower costs. Many universities even have Facebook groups or websites where you can connect with potential roommates.
2. Explore Short-Term Rentals for Flexibility
If you’re not sure where you want to live long-term, short-term rentals like those on Airbnb can give you some breathing room to decide while you explore your options.
Saving on Food and Groceries
Food is another area where costs can add up quickly, especially if you’re eating out. With a few adjustments, you can keep these expenses low without sacrificing your health.
1. Cook at Home More Often
Cooking at home can save you a surprising amount of money. Plus, it’s often healthier than eating out. Meal-prepping and buying ingredients in bulk can reduce costs even more. If cooking feels daunting, start with simple recipes—you don’t have to be a chef to make great meals!
2. Shop Smart at Local Markets
Local markets can be a great place to buy fresh produce at lower prices. Also, supermarkets often have discounted items nearing their expiry date—these are perfectly good if used soon and are often sold at half the price.
Income Options for International Students
Balancing school and work can be tough, but a part-time job is one of the most popular ways for international students to manage expenses.
1. Part-Time Jobs On-Campus
Many universities offer on-campus jobs specifically for international students, making the paperwork easier. These jobs might be in the library, cafeteria, or as a research assistant. They often come with fixed hours, so they’re easier to balance with your studies.
2. Freelance Gigs Online
If your student visa allows, freelance work like tutoring, graphic design, or writing can be done online and on your schedule. Websites like Upwork, Freelancer, or even Fiverr are good places to find freelance jobs that suit your skills and schedule.
Making Use of Student Discounts
Student discounts are one of the best-kept secrets for saving money. Many companies, both online and in-store, offer special discounts if you show your student ID.
1. Transportation Passes
Check with local transit authorities for student passes or discounted fares. Most cities with a large student population offer discounts on bus or subway passes, which can save a lot over time.
2. Entertainment and Software Discounts
From streaming services to software tools, there’s usually a student discount available. For instance, platforms like Spotify, Apple Music, and even Adobe Creative Cloud offer reduced rates for students. Always ask or search online for student pricing options before buying anything full price.
Managing Currency Exchange and Fees
One challenge international students often face is dealing with currency exchange rates and banking fees, especially when transferring money from home.
1. Use Low-Fee Transfer Services
Look for international money transfer services like TransferWise (now Wise) or Remitly. These services typically offer better exchange rates and lower fees than banks. Plus, they’re faster!
2. Choose the Right Bank Account
Some banks have special accounts for students, with lower fees or no minimum balance requirements. Additionally, choosing a bank with ATMs near your campus can help you avoid ATM fees. Always ask about any international fees on accounts, as these can sneak up if you aren’t aware of them.
Building Smart Financial Habits
Beyond day-to-day expenses, building smart financial habits can have a long-term impact on your financial health.
1. Create a Small Emergency Fund
It may seem difficult to save as a student, but putting aside even a small amount each month can help you prepare for unexpected costs. Aim to save enough for at least one month’s rent or a ticket home if needed.
2. Stay Informed on Currency Fluctuations
If you receive funds from home, currency rates can impact how much you have each month. Knowing when exchange rates are high or low can help you decide when to request transfers, which can add up over time.
Learning Financial Basics
Financial literacy might seem like a “later in life” thing, but learning a few basics now will set you up for success.
1. Understand Interest Rates and Debt
Credit cards might seem tempting, but they often come with high interest rates. If you do get one, try to pay off the balance each month to avoid extra fees.
2. Consider a Financial Literacy Course or Workshop
Some universities offer free workshops on budgeting and financial literacy. These can be valuable in learning about taxes, interest rates, and even investments, all of which can help you manage your money better during school and beyond.
Staying Social on a Budget
Studying abroad is also about making friends and enjoying new experiences. Staying on budget doesn’t mean you have to miss out on fun.
1. Look for Free Campus Events
Many universities organize free events for students, from movie nights to cultural festivals. Take advantage of these! They’re a great way to meet people and enjoy yourself without spending money.
2. Opt for Budget-Friendly Hangouts
Suggest potluck dinners or game nights with friends instead of going out to eat or to the movies. Not only does this help save money, but it also builds stronger connections.
Regularly Reviewing and Adjusting Your Budget
Once you’ve set up a budget, don’t forget to check in on it regularly. Things like seasonal sales, special purchases, or changes in income can affect your monthly plans.
1. Adjust for Special Expenses
During exams or holiday seasons, you might need more for study materials or travel costs. Adjust your budget accordingly to avoid any stress when these times come up.
2. Set Monthly Goals
Having small goals each month, like saving $20 or cutting down on takeout, can help keep you motivated. Plus, as you get more comfortable budgeting, you’ll find ways to save more without even thinking about it.
Conclusion
Managing your finances as an international student doesn’t have to be stressful.
With a simple budget, smart spending, and a few new habits, you can focus more on enjoying your studies and less on money matters.
