How to Manage Money While Studying Abroad

There are many life skills you will pick up as an international student. How to manage money while studying abroad is near the top of the list. While an education overseas is not exactly free, you can be mindful of your expenses to make it easier on the pocket. Gradstar Global‘s student specialists narrow down our top tips to stay on top of your budget in this guide!

What Will You Be Spending Money on as an International Student?

The two big components of money matters for international students are tuition fees and living expenses. Tuition fees are usually upfront payments. You clear these at the start of the semester. The more active form of money management you will be doing as a student is handling your living expenses.

A student’s living expenses cover a few components – in general, these are:

• Accommodation

• Groceries and meals

• Utilities

• Transport

• Phone bills

• Social activities

• Personal expenses – clothing, personal hygiene, etc.

How much you will be spending on all of this overall will depend on a variety of factors. Understanding your living expenses and planning ahead is one of the key parts of budgeting as an international student!

Money Management Tips for International Students 

1.    Understand Your Living Expenses

To understand how to manage money while studying abroad, you need to know your living expenses breakdown. When applying for a student visa to countries like Australia, the UK, and Canada, you will need to provide proof of funds. To study in the USA, you need to provide this information during the university application stage itself. This documentation proves whether you are financially able to cover your tuition and living expenses while studying abroad.

While you may set funds aside for your day-to-day expenses, your spending can run away from you. This is especially the case in a foreign country where you’re handling unfamiliar currency. Doing research and setting your budget ahead of time can really help with your money management later on.

One of the reasons for this is the diversity in living expenses you can experience in the same country, and even in the same city. The cost of living can depend on factors like:

The City

Larger and more metropolitan cities tend to be pricier than more suburban or countryside cities. If affordability is a big consideration for you, look for universities in more affordable cities.

Location within the City

If you are living closer to the city center, chances are the costs of living are higher. Farther out from the city center, the cost of living is likely to be lower. You might find, for example, that renting an apartment close to campus costs you more than one closer to the suburbs. It may be friendlier for your pocket to commute a longer distance to class than rent closer to campus.

Accommodation

Generally, single-person apartments will cost more than shared houses for students. Splitting rent with two or more people is not at all uncommon for international students looking to manage their spending. If you are staying with friends, you may be able to split on things like groceries as well.

Staying on-campus can be pricier than off-campus, too. You may have access to a range of on-campus options, including single and shared rooms. The cost structures of these will vary, as will student housing that private companies offer close to your campus.

Ultimately, your budget will help you decide which type of accommodation works best for you.

Your Lifestyle

Your personal preferences and lifestyle also impact your monthly spending. If you are eating out often, you can expect your expenses to be higher than if you prepare your own meals. If you are staying on-campus, you may be on a meal plan, which may cost you more than doing your own groceries and cooking.

Ultimately, your lifestyle will determine your budget for each month and how to manage money while studying abroad. You may be happy to cut back on things like clothes shopping but not be willing to miss out-of-town trips with friends. To keep your lifestyle within budget, you have to understand how much money you have for the month, how much you are spending, and where.

Your monthly spending can look different depending on many factors. You can estimate your budget range using some handy tools like the ones below:

Australia: Study Australia Cost of Living Calculator

Canada: Arrive’s Cost of Studying Canada Expense Calculator

UK: UCAS Budget Calculator

USA: Cost of Attendance Page on University Website

2. Set Up a Local Bank Account

One of the first things you will do as an international student arriving in your destination is set up a student bank account. Student accounts come with a variety of perks that can help you manage your money.

With a local student bank account, you can make direct transfers for things like utility and rent payments and your phone bills. You will also be able to directly receive your paychecks from part-time jobs or paid internships. If you are a scholarship holder, the award amount goes directly to your account. Plus, your family or other sponsors can transfer tuition fees and other amounts to this account for easy access.

You can set up a current account for your day-to-day expenses, and a savings account to build your savings long-term. Locking a part of your budget up in your savings helps you manage your spending without depleting your funds. You also have the security of knowing that there is an amount you set aside for things like travel or rainy-day emergencies.

Many banks also package their student accounts with great benefits, like waiving maintenance fees and withdrawal charges. Having a credit card at your local bank and using it mindfully can also help you build up a good credit score. In the long term, it can help you rent or buy a home in your destination if you aim to explore post-study immigration. Thanks to having a local account, you also won’t have to worry about foreign currency conversion fees.

The perks and benefits of your local student account will depend on your bank. So, when choosing your bank, make sure you research your options well before committing.

3. Take Advantage of Student Discounts

One of the perks of being an international student in study abroad destinations like the UK and Canada is the student deals! You can get a student discount on pretty much anything. Look into the student pass options for public transport that let you get around at discount rates. Services like Spotify, Apple Music, Hulu, Doordash, Lenovo, Samsung, etc. all offer exclusive student deals!

Especially in student cities, you will find student discounts and deals practically everywhere. Movie theatres may give out half-price tickets to students on specific days, galleries and museums can offer free entry to students, etc.

Another huge advantage for international students especially is discounts on air travel! You can explore more of the world or make more budget-friendly trips home thanks to student deals.

When it comes to how to manage money while studying abroad, one of our biggest tips is to keep an eye on the student discounts. From public transport and accommodation price reductions to bookstore and café discounts, you can save a lot with student deals. Often, all you will need is a student ID to validate your student status and you’re good to go!

4. Use a Money Manager App

Even when you are being careful with your purchases and expenses, your spending can run away from you. Sometimes it’s hard to add up how much you are spending overall until you’re already past the red. A money manager app can make life a lot easier so you’re always on top of your spending.

You can set aside your budget for the month and input every purchase you make to deduct from this total. You’ll find that just the practice of accounting for all your spending will make you more critical and mindful with money management. At all times you will know exactly how much wiggle room you have with your funds and how much you’re spending. You can then allocate your expenses on priority.

Some great options for budgeting on the go include:

• Your bank’s mobile banking app. Many banks offer a budget-tracking option to automatically tally your funds against your spending

• Mint

• PocketGuard

• Money Manager Expense & Budget

• Splitwise (great for shared expenses – e.g., when splitting bills with a roommate)

5. Earn Money Abroad as an International Student

Part-time student jobs are often the answer international students come to when figuring out how to manage money while studying abroad. With a valid student visa, you can work part-time during semesters and full-time over the holidays in student jobs.

Subclass 500 – Australia

• 24 hours per week (48 hours per fortnight) during semester-time

• Full-time during holiday breaks

Study Permit – Canada

• 20 hours per week

• Full-time during holiday breaks

Student Visa – the UK

• 20 hours per week

• Full-time during holiday breaks

USA

International students in the USA can only work part-time on campus. After their first year, they can apply for CPT or OPT (professional subject-specific training with DSO-authorization)

There are a variety of part-time opportunities out there for students to look into to help foot the bills. A few popular options include:

• Retail Jobs

• Pet Sitter/Walker

• Hospitality and Food Service

• Tutoring

• Administrative Assistant

• Freelancer

• Research Assistant

• Teaching Assistant

• Delivery Driver

• Event Staff

Working part-time as a student has plenty of perks that go beyond the financial independence. You develop crucial soft skills – like communication, time management, and strategic planning – which you can transfer to your future career. Employers value candidates who already have some work experience to their name when entering the workforce.

The salary ranges can vary depending on the job type and where you are working. You can always approach the career support services at your university for tips on how to secure a great part-time job.

6. Stay Up-to-Date with the Exchange Rate

It’s very important to keep an eye on the exchange rate between your home country’s currency and the destination’s currency. Before transferring funds for tuition fees or living expenses, be sure you’re aware of the strength of both currencies to avoid making losses during the conversion. This also helps you estimate exactly how much you will need to cover your expenses if you are receiving funds from home. You want to be sure that you are not left with a deficit because of exchange rate fluctuations.

Rounding Up

How to manage money while studying abroad is a challenge practically every student on a budget will face. But with the right math and tools, you can keep yourself and your pocket on track. It’s always a good idea to consider your living expenses as part of the factors weighing on your university decision. Alongside tuition fees, living costs are a big component of your spending as an international student. Planning ahead and tracking your expenses are ultimately the best ways to manage your money while study abroad!