Studying abroad is an exciting and transformative experience but comes with challenges, especially when it comes to finances. This is where money management tips for students abroad come in. For many international students, it is their first time handling money independently and balancing tuition fees, living expenses and unexpected costs. In this guide, we’ll share actionable money management tips, helping you take control of your finances while still enjoying the perks of student life abroad.
Financial independence is a critical part of studying abroad. Poor money management can lead to unnecessary stress for both students and their families. It is important to be aware of simple strategies early on that will help you to stay on top of essential expenses like tuition and rent, build financial security for emergencies, and finally enjoy your time abroad without overspending.
International Student Hacks to Manage Your Money Abroad
Create a Realistic Budget:
Important money management tips include calculating your weekly/monthly/yearly expenses. This will help you plan your financials well before you start your study abroad. Knowing how much money you have is crucial, whether your funding comes from family support, scholarships, part-time work, or savings. Typical expenses include fixed expenses like tuition fees, rent, and transportation costs. Other expenses would include variable expenses like groceries and entertainment.
Plan to set aside 10-20% to save for emergencies. You can look at the official study abroad pages of the country that you are planning on studying in for helpful insights. For example, UCAS has an entire section on Money & Student Life for incoming international students arriving to study in the UK. Additionally, it is helpful to talk to friends and family who might already be living in the host country to understand the living costs.
Open a Local Bank Account:
Opening a local bank account a few days after arriving in the country is essential for an international student. This helps you avoid hefty international transaction fees and makes it easier to pay for daily expenses. When choosing a bank, look for student-friendly accounts with no monthly fees. It is important to check for features like online banking and free international transfers. Most countries will have their country-specific banks tailoring services for students.
Needs vs. Wants:
Even the smallest expenses can quickly add up, so be mindful of how you can save money while also enjoying the study abroad experience.
- Track your expenses using Excel or budgeting apps
- Cook at home most of the time instead of eating out
- Take advantage of student discounts on transportation, entertainment, and shopping
- Buy second-hand books on Facebook Marketplace or use digital resources for academic materials
- Limit impulse purchases by sticking to a shopping list
- Look for apps like UNiDAYS or Student Beans that offer discounts specifically for students
- Ask your University about the different student bursaries or subsidies they offer
Explore Part-Time Jobs:
Most students take up part-time jobs to earn extra money while they study. Balancing work and study can be a little tricky, but it is worth it to gain professional skills and financial independence. Popular student part-time jobs include tutoring or teaching assistant roles, retail or hospitality jobs and freelance jobs like graphic design or writing. Before applying for part-time jobs, check your work rights to ensure your eligibility to work.
Plan for Emergencies:
This is a key component of the money management tips international students cannot skip. Be prepared for unexpected expenses like medical bills or travel costs. Always put aside 10-20% money monthly to account for any unexpected costs that might derail your budget. Ensure that you sort out your medical insurance before coming to study, if possible, and keep some cash handy to use in case of an emergency. Remember to keep digital backups of all important documents like your passport, insurance policies, and banking details for easy access during emergencies.
Save on Currency Exchange:
Frequent currency exchange can be costly and add up to a big amount. To minimise these costs, find out about low transfer fee services, compare exchange rates before converting money, and avoid exchanging money at airports, as they often charge higher fees.
Long-Term Budgeting Habits
Long-term money management tips include setting financial goals and taking time to understand financial literacy (credit scores, investment, interest rates etc.). These long-term habits will benefit you even beyond your studies.
Concluding Remarks
Managing money as an international student requires discipline, planning, and smart decision-making. By following these money management tips for international students, you can minimise financial stress and focus on making the most of your time abroad. From creating a budget to building an emergency fund, every small step will help you stay in control of your finances while enjoying a fulfilling student experience abroad. Remember, the good money habits you can develop now, as a student, will set the foundation for financial success in the future.
