How to Manage Money While Studying Abroad?

Money management actually refers to the process of handling all your finances, starting from budgeting to spending. It also dictates how someone is overseeing their capital usage. Undoubtedly, it is a very crucial part of a student’s life, especially if they are living in a foreign country.

Money management also provides a good opportunity for students as it helps them in learning how to spend money prudently. It also plays a vital role in helping students how they can meet all their future endeavours.

Managing your finance is one of the most important things to prioritise, especially if you are studying abroad. This is because if you are shifting to a different country, it will have different currency and pricing methods.

Here are some tips that students can follow to learn the art of managing money while studying abroad:

1. Use Your Student Pass

One of the biggest advantages of being a student is that you can avail of endless discounts and coupons. So, as soon as you set foot in the university, ensure to grab your student ID.

Simply by showing your student ID, you can get a lot of discounts on movie tickets, shops, transportation, restaurants, and other cultural events. Not just that! Even there are some websites that offer huge discounts to students while purchasing any items from them. So, don’t forget to check them out.

2. Open an Account in Your Local Bank

Transferring funds from an Indian bank to an international one every now and then can levy huge charges. So, after you move on to a foreign country, the first thing that you should do is open your account in a local bank there.

As services might differ from bank to bank, you can preferably choose one that provides maximum advantages to students. If your college has tie-ups with any banks, you can even choose that as well.

3. Prepare a Monthly Budget Plan

Most students overspend when they first come abroad. Therefore, it is imperative to prepare a monthly budget plan as per your financial status and stick to it while making any expenses.

It must include your grocery, utility bills, transportation, monthly rent, travelling charges, recreation, study materials and other expenses. By doing so, you can even save some funds for your emergency purpose.

4. Get Cheap Accommodation

Usually, rents are quite higher in foreign countries. So, either live on the university campus if it provides you with some student accommodation services, or you can even live off-campus.

The latter will definitely be the cheaper option as you can cut your costs by sharing your room with more roommates to live in.

5. Learn to Cook Yourself

If you try to buy fresh ingredients from the market and cook your dishes at home, that would be healthier and more affordable. This is another easier way following which you will be able to learn how to manage money while studying abroad.

If you lack time, then instead of eating out, you can cook some dishes in large quantities and keep them in the fridge. While takeout, you can reheat them and have them.

6. Prioritise Your Spending Smartly

In order to manage and save your money smartly, you need to understand your needs and requirements. Accordingly, you should make a priority list following which you should spend.

You can also minimise your expenditures following these easy ways: purchasing through community stores, joining a library, buying digital copies or used books, getting passes for local transport, etc.

7. Choose Cheaper Phone or Broadband Services

Making calls is necessary, whether local or international. So, you need to find a broadband or phone plan that seems convenient and affordable for you.

So, do research and find the one that seems suitable. There might be a possibility that you are paying for some add-ons which you actually don’t require at all. So, you can spare them and save some money on them.

8. Shop During Sales

During the first few months, you need to buy some essential things to settle down with comfort. 

Instead of buying these necessities from regular stores, you can opt to buy them during garage sales or Black Friday sales.

During these sales, you get crazy deals which make your shopping much cheaper.

9. Determine What’s Essential and What’s Not

Another problem that many college students often face is determining what is a “must have” for them and what is just “nice to have.” Items that you need in your everyday living are essential, like food, toiletries, books, clothing, etc.

While there are some non-essential items as well that you might not need for everyday living, like iPad, bikes, etc. You can restrict your spending on these items.

10. Work to Earn Some Additional Income

During term breaks, you can work either part-time or full-time to support your lifestyle. By working, you will not only gain some workforce skills but also will get some additional income to manage your expenses in a better way.

Thus, you can find a suitable job for you to support your lifestyle.

11. Commute Using a Bicycle or a Bike

If your campus is nearby, then you can either grab a bicycle or a bike to ride down to it. Try to limit commuting via a taxi as it might be too expensive to handle.

Rather a better and healthier option would be to opt for convenient public transport. In case you have to travel very frequently, consider signing up for a metro or bus pass.

So, whether you are planning to study overseas or already studying there, you can always use these effective tips on how to manage money while studying abroad.

Money management not only helps students in building good habits, but it can also help them in staying out of debt. Here are some more reasons that clearly state why money management is important for students:

• It helps the students in keeping track of their budget and stays on track.
• It also helps them in setting goals and makes informed decisions regarding their saving and spending habits.
• With careful money management, they can save money for other things as well, like, providing for housing costs, college tuition, books and supplies, etc.
• This also helps them in saving enough money for a financial emergency or for other financial requirements that are worth the long run.
• It can also help in boosting students’ credit scores which might also help them in borrowing money in future.
• It also helps students establish clear financial goals by assessing their present financial situation.
• They are also able to take control of their money and finances, which might help them in saving for the future.
• It also develops an investment strategy in students so that they can build their wealth.

So, if you want to set a bright future for yourself and improve your financial condition, then money management is essential.

The information mentioned here will not only make your university experience an exciting and comfortable one, but they will also help you to bear your expenses in the right way.