Tips to Manage Money While Studying Abroad

It is critical that you understand what expenses will be necessary, such as rent and utilities, and set money aside for these so that you will always have a roof over your head. Because you are in a new financial system with a new currency, it can be difficult to estimate how much money you will need for miscellaneous expenses such as transportation, healthcare, books, and so on.

However, it is critical to set aside a specific amount for this, or you may end up spending more than you can afford. Once you've planned for all of these expenses, you'll be able to assess how much money you have left over for entertainment and other social activities.

It is critical to clear all fixed expenses first, since this will leave you with the funds to allocate to other expenses. 

Intelligent Banking

The first thing to do is to check if your home bank has a local branch in the city you are residing in or a partner bank with which they work, and under what terms do they have a partnership with the local bank. If your bank does not operate in the city you reside in you will need to use ATMs to access your funds, which are operated by other financial institutions.

In case you are using ATMs you will be charged a withdrawal fee and a percentage of the sum you have withdrawn; therefore, it would work out less expensive to open a local bank account and have your funds transferred to it. Using online banking can help you keep an account of your transactions and the balance in your account. Online banking will allow you to transfer funds without any additional fees.

In case you are using a debit card try to withdraw money and use hard cash, as it is easier to track your sending. If you are using a credit card, it is important to enquire about the additional fees applicable with the bank and inform them that you will be using the card in a foreign country, as some banks have a warning system for frauds on purchases made in foreign countries and this may lead to your card being blocked by the bank.

Some merchants may offer to charge you in your home currency for purchases, but they usually use a higher conversion rate, so it will work out more expensive at the end of the day and it is better to decline such offers.

Spend Locally

It will take some time for you to adjust to the way various merchants do business when you are abroad. For example, if you live in the Middle East, you will be able to bargain and negotiate on the cost of things because prices are not fixed. However, in Western countries, this is not possible because most commodities have fixed and non-negotiable prices.

Contact a local to learn where to locate the best bargains. Large shopping malls and shopping centers are typically more expensive than the local market. Many communities arrange flea markets with locally created goods; they are generally inexpensive, and you can get nice buys on clothing and other fascinating stuff.

Managing Social Activities

As you are in a new nation, you will be tempted to go out and meet new people; nevertheless, this can be costly if you are not careful. You should organize your social activities and set aside a predetermined amount of money for entertainment.

Most entertainment and social events are unexpected and unpredictable, making it difficult to establish how much to set aside for them.

However, it is important to set aside a certain amount for a set period of time and try to stick to it. Instead of going out to meet people, you can sometimes invite them to your place, which is less expensive.

Set Up a Source of Income

Many students take up part time jobs during their course to cover any additional expenses. These jobs are usually available as soon as you begin your course as many of the graduating students would have quit them to move elsewhere in search of more permanent jobs. These are usually simple jobs that do not take up much of your time, as your main concern will be your course.

Most countries have a maximum number of hours you can work a month as a foreign student, it is important that you inform yourself about such rules, as a violation of these rules can have some serious repercussions.

You can also opt to freelance jobs, which will pay you on a project basis. This will allow you to work at your leisure and will not affect your studies. Usually, after your second semester you will be able to apply for paid internships which is also a good way to make some money to take care of your expenses.

Use Student Discounts

Many countries provide student discounts on a variety of items, which can significantly reduce your costs. Students are usually given discounts on public transportation and other public utilities. To learn more about these offers, contact your university. 

Be Money-Smart with Our App

A good credit score can help you secure lower interest rates on loans and credit cards.

Get Free Credit Score