Starting from the pre-application preparation phase to getting ready to travel post-acceptance and finally, settling in a new country needs some serious financial planning. Your considerations should include tuition fees, travel costs, accommodation, living costs, medical insurance, and many other miscellaneous expenses that add up to a huge sum. Unless you meticulously plan your finances, your overseas academic tenure can be stressful, leading to a poor GPA and a compromised career prospect. That would be awful and undesirable.
So, you can embrace all the varied opportunities that studying abroad brings to your platter without getting broke, here are some well-grounded, practical money management strategies for you to follow.
Understand The Key Expense Overheads:
Research well to understand all the costs involved in moving to a foreign country to study. Besides your tuition fees, you must factor in every other expense required to live independently, including housing and food, grocery and utilities, travel from your home country to the host country, local travel, medical and travel insurance, and entertainment. Further, there are visa fees as well that you need to account for. And, you cannot overlook issue of fluctuating exchange rates either while planning your finances. Awareness of the current currency exchange rates and the fees involved is crucial in your study abroad budget.
List the Various Sources of Funds
Now that you know where you will have to spend money while studying overseas, list all your sources of funds like education loans if you are borrowing, financial support from family, scholarships, sponsorships if any, grants, etc. Once you have started your education abroad, you can explore part-time work options to supplement these fund sources. Seeking an education loan in your home country is more cost-effective than trying to get one on foreign shores. Further, in the case of an education loan, you need to consider the repayment conditions. As for scholarships, most universities offer entrance scholarships to deserving students. Explore such options or the possibilities of applying to need-based ones after joining the program of your choice. You can also explore scholarship programs awarded by private organizations or the government of your home country.
Planning Your Finances in Advance is the Key:
Effectively matching your fund sources with your expense overheads forms the basis of sound financial planning required to fuel your study abroad dream. While you cannot do anything about the tuition fees except apply for scholarships, creating a budget for every other expense head by allocating realistic limits to each will help you stay on track money-wise. A practical tip is to identify the necessary monthly expenses like the rent, food, essentials, and travel. Once you have earmarked specific amounts for these heads, you can decide how much you can afford to spend on an occasional fancy restaurant meal or entertainment.
Remember to monitor where your money is flowing through budgeting apps or spreadsheets and review regularly to spot any areas that may require adjustments.
Opt For A Local Bank Account in Your Host Country:
While in some countries like Germany, it is mandatory to have a local blocked bank account that allows you to withdraw a specific amount towards your living cost every month, others do not have such specifications. However, it makes sense to get a checking account with a local bank to avoid high remittance charges that could be levied by the bank of your home country for every small transaction you make. Besides, if you engage in part-time work while studying, it would be easier for you to deposit your wages into the local bank account.
Make Thrifty Lifestyle Choices:
Your lifestyle choices impact your overall living costs. You do not need to live stingily, but keep in mind that a penny saved is a penny earned. Spending only on the essentials and judiciously planning your leisure expenses can keep you safe and comfortable money-wise.
You can cut back on accommodation costs if you opt to stay at campus housing. However, oftentimes, campus housing is not available, thus leaving you with no other option other than renting an apartment. Sharing your apartment or living in a homestay accommodation can substantially reduce your rent expenses. Further, staying near the city centre will be much more expensive than staying downtown.
Likewise, using public transport like the bus or the underground is a far economical choice than using cab services for commuting. In a lot of countries, international students are issued a discounted travel pass for usage of public transport. Alternatively, cycling to your classes is a choice that is both healthy and easy on the pocket.
Another efficient money-saving lifestyle choice is to cook your food instead of relying on takeaways. Although campus dining is subsidized for students yet, a home-cooked meal will suit your palette besides saving some cash. Truth be told, buying fresh from the local market and cooking yourself can help you save 30 – 50% of your food budget.
Need books for your studies? Check out the second-hand bookstores in your locality, or better still, take notes at the campus library. You can also take a reading membership at the local public library for your reference work.
Supplement Your Financial Resources with An Additional Income:
Most foreign education destination allows international students to work part-time for stipulated hours once their program commences. Of course, working part-time will not help you support your academic dreams fully. However, such jobs can be a source of some extra cash to tide you through, not to forget the valuable work experience that you thus gain. You can work a variety of roles, both on and off campus. Although specific countries, like the USA, restrict international students from engaging in regular part-time off-campus jobs, in other countries like Australia and Canada, you are free to find a job that doesn’t hamper your studies. In the USA, international students can engage in Curricular Practical Training or Optional Practical Training, that are paid traineeships in their areas of study, which furthers their chances of getting post-qualification employment opportunities.
On-campus, you can work as a library assistant, support executive at the student office or in the campus cafeteria, etc. If you are a graduate student, you can apply for a Graduate Assistantship, Research Assistantship or Teaching Assistant position.
Off-campus, you can work in retail stores, petrol pumps, as babysitters, or as an English language trainer, provided you have the required certification, and so on.
Make Good Use of The Student Card:
Often, universities issue student cards that can get you to access campus facilities like the library, fitness centre, sporting activities and a host of other services. Find out if your student card has off-campus business tie-ups which can get you handsome discounts at departmental stores, movies, cafes, cultural establishments, etc.
When In Rome, Spend Like A Roman
Well, not exactly! But, finding out the places where the local people get their fresh produce from, getting to know the shortest city routes, the times of the year when sale is live at retail stores for your essentials, or happy hours at pubs and cafes will help you save a penny here and there that may add up to quite an amount at the end of the day.
Finally,
Just out of home, in a new country, you may feel overwhelmed trying to manage finances while the fun side of being on your own beckons. It is important to take money matters into your hands at this juncture by being mindful about expenses, or else you may find yourself in a tight spot before the month ends. Make the most of your time as a student overseas by exploring the locale, trying the local cuisine, and doing everything students do while keeping a tight leash on your money.
The expert team of counsellors and mentors at UniApplica can help you with effective budgeting even before you start your admission application process, besides providing destination-specific money management tips that can make your study abroad experience smooth sailing. Call us today for more details.
