How much should you save before studying abroad?
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The answer isn't one scary number. It's a plan you can build step by step. This guide breaks down what you actually need to save, what each country requires as proof of funds.
It's the question that keeps most students up at night: how much money do I actually need before I go? Take a breath - the answer isn't one giant number, it's a plan you can build piece by piece. In 2026, part of that plan is meeting the proof-of-funds thresholds that several countries now expect you to show before they grant a visa.
Let's break it into the pieces you can actually budget for, one at a time.
The three costs to plan for
Every study-abroad budget comes down to three buckets, nothing more mysterious than that:
Tuition: The headline cost, and the one that varies most by country and course.
Living costs: Rent, food, transport, insurance, phone, the occasional flight home.
One-off setup costs: Visa fees, travel, a deposit on accommodation, warm clothes if you're heading somewhere cold.
A useful rule of thumb, from anyone who's done this before: your first year abroad usually costs more than you expect, because setup costs and deposits all land at once. Budget generously for month one, and you'll thank yourself later.
Proof of funds: What 2026 actually requires
Here's where things have shifted, and where a little research now saves you a scramble later. Several popular destinations have raised the amount you must prove you can access before they'll issue a visa. These figures are set by governments and change periodically, so always confirm the current requirement on the official immigration site before you apply. As a 2026 snapshot:
Canada
For study permit applications, a single applicant outside Quebec needs to show living-cost funds of CAD 22,895 for the year, on top of first-year tuition and travel, per Immigration, Refugees and Citizenship Canada (IRCC). This figure took effect for applications submitted from 1 September 2025 and replaced the older CAD 20,635 amount. A Guaranteed Investment Certificate (GIC) is one common way to demonstrate these funds, though it isn't the only accepted method, bank statements, an education loan, or a sponsor can also count.
United Kingdom
For a Student visa, you'll need to show living costs of £1,529 per month if studying in London, or £1,171 per month outside London, for up to nine months, confirmed on GOV.UK's student visa money page. That works out to roughly £13,761 for London and £10,539 elsewhere, plus any unpaid first-year tuition shown on your CAS. The funds generally need to sit in your account for 28 consecutive days.
Australia
The student visa financial-capacity benchmark for a single student is AUD 29,710 for living costs, on top of first-year tuition and travel, per the Australian Department of Home Affairs. This figure has risen in recent years, so check the current amount before you apply.
United States
The US works differently: there's no fixed government figure. Instead, your university issues a Form I-20 based on its estimated cost of attendance for one year (tuition, fees, living, insurance), a process outlined by Study in the States, run by the US Department of Homeland Security. You demonstrate funds covering that amount, and you present the evidence at your visa interview. Scholarships and assistantships reduce what you need to show; you cover the gap.
Roughly what a master's costs in 2026
Numbers help more than vague worry, so here's a starting point. Treat these as rough planning ballparks, not gospel, for tuition plus living, per year:
United States: Often USD $35,000–50,000 a year, higher at top private schools.
United Kingdom: Around £23,000–50,000 for a typically one-year master's.
Canada: Roughly CAD 18,000–50,000 a year.
Australia: Roughly AUD 47,000–80,000 a year, with high living costs in the big cities.
Treat these as starting points, then swap in your own programme's real numbers the moment you have your offer, they'll always beat a generic estimate.
How to build your savings target
You don't need every dollar sitting in the bank before you go - you need a clear target and a plan to close the gap. Here's how to get there in three steps:
Add it up. First-year tuition + living costs + setup costs = your year-one total.
Subtract what's covered. Scholarships, family contributions, and any savings you already have.
Identify the gap. Whatever's left is what you need to fund another way.
Once you can see the gap clearly, it stops being scary and becomes a to-do list, and to-do lists are a lot less intimidating than open questions.
Where a loan fits in
For most international students, savings and scholarships cover part of the cost, and a loan fills the rest. That's exactly what a student loan is designed to do: bridge the gap between what you've saved and what your degree costs.
A loan can also help you meet proof-of-funds requirements, since an approved education loan is generally an accepted way to demonstrate financial capacity. With Prodigy Finance, there's no cosigner and no collateral, eligibility is assessed on your future earning potential rather than your family's income or a guarantor. Loans include a mandatory in-school payment of USD $100 a month while you study, already factored into our representative APR of 11.80%*. Funds for tuition are sent directly to your school, and repayment begins after a grace period once you've finished studying. Because eligibility can vary by intake, the fastest way to get an accurate answer for your situation is the eligibility checker.
The bottom line
Don't aim for a vague "enough" figure. Work out your year-one total, check the current proof-of-funds requirement for your destination, subtract what's already covered, and make a plan for the gap. A clear number is far less daunting than an open question. This is the first real step towards getting on the plane.
Want to see what a loan could look like against your own numbers? Try the Prodigy Finance loan calculator.
FAQs
What if my savings fall short of what I planned?
Does an approved loan actually count as proof of funds?
Can I combine a scholarship with a loan?
When should I start sorting out my financing relative to my visa application?
