Written by Ewen Rousseau, J-1 Exchange Student
Studying abroad is an exciting and transformative experience, but it also comes with financial responsibilities. Whether you're attending university in Europe, Asia, or the Americas, managing your finances effectively while abroad is crucial for making the most of your time and ensuring that your experience doesn't end prematurely due to financial stress. This blog will explore practical strategies for budgeting while studying abroad, helping you to balance academics, travel, and social activities without breaking the bank.
1. Create a Detailed Budget
The first step in managing your finances abroad is to create a detailed budget. This is crucial because without understanding your income (if you have any) and your expenses, it can be easy to lose track of how much you're spending. Here are some things to include in your budget:
a. Fixed Expenses:
These are the costs that don't change each month and can include:
● Rent or accommodation
● Utility bills (water, electricity, internet, etc.)
● Transportation (monthly passes, taxis, etc.)
● Insurance (health insurance, travel insurance)
b. Variable Expenses:
These are expenses that can vary depending on your lifestyle and choices. Common variable expenses include:
● Food (groceries, dining out, snacks)
● Entertainment (movies, concerts, nightlife)
● Travel (weekend trips, public transport)
c. Emergency Fund:
Always allocate some funds for unforeseen circumstances. Emergencies can include medical expenses, travel delays, or last-minute costs. A good rule of thumb is to have at least $200-$500 set aside for emergencies, depending on your location.
2. Track Your Spending
Once you’ve created a budget, it’s important to track your spending. Many students make the mistake of not keeping track of how much they are spending daily. This can lead to overspending and an unpleasant surprise at the end of the month. Fortunately, there are plenty of apps available that make tracking your spending simple. Some popular budgeting apps include:
● Mint: A free app that connects to your bank accounts and categorizes your spending.
● PocketGuard: Helps you monitor your spending and set savings goals.
● YNAB (You Need a Budget): A more advanced budgeting app for those who want to get deep into their finances.
Keeping track of your spending regularly allows you to stay within your budget and make adjustments when necessary. It's also essential to compare actual spending against the budget regularly and adjust it to ensure you stay on track.
3. Open a Local Bank Account
One of the easiest ways to manage your finances while studying abroad is to open a local bank account. Having a local account allows you to:
● Avoid excessive fees on international withdrawals and transfers.
● Easily manage day-to-day expenses and use debit cards for everyday purchases. ● Receive your salary or any money from home without incurring high conversion fees.
Before opening a local account, check the requirements and fees for international students. Some banks offer accounts designed specifically for students, and others may offer discounts on ATM withdrawals or international transfers.
4. Be Smart About Housing
One of the biggest expenses while studying abroad is accommodation. Housing costs can vary significantly depending on the city and country. Some tips to save money on housing include:
● Look for shared accommodation: Renting a room in a shared apartment or house can be a great way to lower your rent costs. Websites like Roomster, Facebook groups, or university housing boards are excellent places to find roommates.
● Consider university-managed accommodation: Many universities offer affordable housing options for international students, and these can be cheaper than private rentals. The benefit of university accommodation is that utilities are often included in the price.
● Explore local neighborhoods: Living a bit further away from the city center can drastically reduce your rent. Research the surrounding neighborhoods and see if they are well-connected by public transport.
5. Save on Food
Food is another expense that can quickly add up, especially when eating out frequently. Here are a few ways to save money on food:
● Cook your meals: Preparing meals at home is far cheaper than eating out. Take advantage of local markets and grocery stores to buy fresh produce and ingredients.
Cooking for yourself also gives you the opportunity to explore local cuisines without the added cost of eating out at restaurants.
● Meal prep: Consider meal prepping at the start of the week to save time and money. This will also help you avoid impulsively buying expensive takeout.
● Eat like a local: In many countries, eating out can be quite cheap if you know where to go. Opt for local eateries instead of touristy spots. Street food can be an affordable and delicious option, especially in countries like Thailand, Vietnam, or Mexico.
● Use discounts and coupons: In many countries, supermarkets and restaurants offer student discounts or loyalty cards. Always ask about discounts when you're out shopping.
6. Travel Smart
One of the best parts of studying abroad is the opportunity to travel. However, travel can be expensive, especially if you visit popular tourist destinations. Here are some strategies to save money on travel:
● Book in advance: If you know you want to travel on a particular date, book your transportation (flights, buses, or trains) as early as possible. Prices tend to increase as the travel date gets closer.
● Use student discounts: Many transportation companies offer discounted rates for students. Websites like StudentUniverse or ISIC Card can provide discounts on flights, buses, and trains worldwide.
● Use public transportation: Public transport is often much cheaper than taxis or ridesharing services like Uber. If you're in a city with an efficient metro or bus system, take advantage of it.
● Look for free or low-cost activities: Many cities offer free walking tours or have free events like concerts, festivals, or museum days. Research local activities before heading out to find cost-effective options.
7. Work Part-Time
Depending on your visa and the country you're studying in, you may be eligible to work part-time while studying abroad. Many countries allow students to work up to 20 hours per week during term time, and full-time during breaks. Part-time work can help ease your financial burden and allow you to spend more on experiences rather than essentials. Here are a few ideas for part-time work:
● Tutoring: If you're proficient in a language, offer tutoring services to local students.
● Campus jobs: Many universities offer part-time positions for students, such as working in the library, cafeteria, or student center.
● Freelancing: If you have a particular skill (writing, graphic design, web development, etc.), freelancing can be a flexible option that allows you to work from anywhere.
8. Use Student Discounts and Offers
As a student, you can take advantage of a wide range of discounts and offers. Many online platforms and stores offer student discounts, so it's worth signing up for student discount programs. Some popular options include:
● UNiDAYS: A platform offering student discounts on a variety of brands, from clothing to technology.
● Amazon Student: A discount program that provides a six-month trial with free shipping, exclusive discounts, and more.
● Spotify, Apple Music, and Netflix: These services offer discounted student subscriptions, allowing you to enjoy entertainment without breaking the bank.
9. Limit Your Use of Credit Cards
Credit cards can be convenient, but they can also lead to excessive debt if not used responsibly. Avoid accumulating interest charges and overspending by using credit cards wisely. If you do use a credit card, make sure to pay off the balance every month to avoid paying unnecessary interest.
Conclusion
Budgeting while studying abroad may seem daunting at first, but with a bit of planning and discipline, it’s entirely manageable. By setting a clear budget, tracking your spending, and being mindful of your expenses, you can enjoy your time abroad without financial stress. Whether you're cooking at home, using student discounts, or working part-time, there are countless ways to stretch your money and make the most of your international experience. Stay organized, be proactive, and you'll have the financial freedom to truly enjoy studying abroad.