While studying abroad, managing your personal finance is one of the most challenging experiences. You will find yourself in a new country with a new financial system, different currency, and dissimilar pricing methods. Amidst all this excitement comes the question of a mammoth financial investment which takes a huge toll on your pocket. So, studying and living abroad will definitely help you grow as a person and get a step closer to being an adult.
But for this you will have to absorb the art of personal finance management, which involves a great deal of patience, maturity, persistence, and self awareness.
Money management is a critical part of a student’s life in a foreign country as it can be quite an expensive affair. By planning it well, students can successfully manage their future endeavors with ease and eventually learn how to spend money in a sensible manner. So, before starting, you need to manage and know your abroad study expenses like accommodation, food, health coverage, communication and travel.
This is the first thing that you should be aware about studying abroad. You have to look for the tuition fees of different universities on your list. Basically, tuition fees vary according to the country and you can always apply for various scholarships available for International students to bring down your educational expenses when studying abroad.
You can choose from on-campus residence facilities if your institution offers one, else off-campus accommodation options include sharing apartments with a fellow student. Remember, the rentals vary from region to region.
When you stay in a new country, you’ll have to adapt to its culture and ways of living, and this sometimes comes with a cost. For instance, a single international student’s annual budget is approximately indicated at $20,000 and $27,000 per year for Australia, CAD 15,000 for Canada and NZD 13,000 to 16,000 for New Zealand.
The last major expense to take into consideration will be travel costs. Using public transport is the most economical way to travel and a great way to experience the local life. So, to get well with the transportations you need to have good knowledge of travel costs for every route.
Well, it can be difficult to manage your finances as an international student. However, with some basic planning and understanding , you will not only have enough money for utilities and other expenditure, but also to reward yourself once in a while.
So, here is a list of tips on how to manage your personal finance in the best possible way while studying abroad and avoid stressful situations like having to borrow money or being broke.
This is one of the most crucial steps in money management. Make a daily and weekly budget for yourself. You should prioritize your expenses, giving more importance to what you need than to what you want. Knowing what you need will help you plan the budget and knowing what you want will help you include fun and leisure activities into your budget.
The first thing you need to check is if your bank has a local branch. If it doesn’t then you would have to depend on ATMs where in most cases you would be charged a certain percentage of the sum you withdrew along with a withdrawal fee. In these cases, the intelligent thing to do would be to open an account in your local bank account. Online banking is another option that you can resort to.
Different countries have different trading cultures. You would be benefiting if you understand and get to know about them as soon as possible.Try and spend as less as possible in the first few months so you could understand how much it takes for you to just get by. It would do you good to gain some perspective on your spending practices.
When you are studying abroad, it is essential to balance your social and academic life. It is imperative that you have a life outside of college. This will be the scourge of your life abroad. Avoid visiting expensive restaurants and bars in the first few months. Cook for yourself instead of eating out. That way you can save money to go out and socialize when invited by friends and acquaintances.
Get yourself a student card as early as you can. This card will help you avail discounts on restaurants, shops, movie tickets, transportation and various cultural events. In fact, there are many websites that offer great student discounts on events and shopping, do check them out!
Studying abroad is expensive, but smart planning can help you survive very easily.Find ways to save your money and use it smartly. You can also reduce your daily expenditure with simple ways like:
Getting student discount cards
Buying used books or digital copies
Getting passes of local transport
Shopping during sales
Joining a library
Now when you are well aware of the student options available to finance study abroad, you need to get started by taking the right step at the right time before it gets too late. Money management will help you supervise your money while studying.