- Financial planning is crucial for international students as it helps manage expenses, reduce stress, and allow them to make the most of their study abroad experience.
- Key financial planning tips include creating a budget, securing affordable housing, exploring part-time work options, taking advantage of student discounts, and being smart with health insurance.
- Take help from Prodigy Finance to fund your international education. You can get your study loan processed without any collateral and take advantage of their flexible repayment terms.
Studying as an international student is an incredible opportunity as it opens a pathway to experience new cultures and gain knowledge. To make the most of your journey, financial planning is an important step. With some pre-planning, you can ensure a smooth and successful experience abroad.
This guide is here to help you to make informed decisions about finances in a foreign land. From creating a realistic budget to finding the best ways to save money, this guide covers everything you need to know. By following these steps, you will be able to focus on achieving your academic goals, while enjoying the unforgettable experience of studying abroad.
Top Financial Planning Tips For International Students
International education provides you with various opportunities, but it also leads to a higher cost of education, tuition, and accommodation. It is important to note that some of these financial aspects can, at times, cause a lot of pressure. However, these expenses are manageable with a little bit of planning, and it is possible to make the most of an overseas education.
Assessing Your Current Financial Status
Evaluating your current financial position means being aware of how much money comes in and goes out. First of all, make a list of everything coming your way financially, from savings to scholarships and contributions from home. Then, list all of your expenses, like tuition, rent, utilities, and groceries, among others.
Now, deduct the necessary expenses and figure out how much extra money you have. This will help you decide whether it is possible to reduce costs or if you require additional assistance. This is useful while preparing for a budget and planning on how you should wisely spend and save your money.
Finance Your International Education
Studying abroad is a dream come true, but it is important to be smart with your money. Check out all the options that you have to finance your education. Look for financial aid or rely on your savings or family funds to meet some of the costs.
Sometimes, a loan is the way to go for pursuing international education. So, research different lenders to find the best interest rates and repayment options. Remember, borrowing is a big decision, so only borrow what you absolutely need.
If you need a loan, Prodigy Finance can help. They offer loans to international students, which makes it easier to get financing without the need for collateral or a co-signer. Prodigy Finance understands the difficulties faced by international students and offers flexible repayment options to fit your situation.
Set Up Your Local Bank Account
It is really nice to have a bank account in the destination country where you have moved. It lets you easily access your money without any hassle and avoids the charges for currency conversion.
So, find a bank near you that offers services to students in your area. You will probably require your passport, your student visa, and evidence of where you are currently residing. With these documents, the bank can set you up with an account and debit card for everyday spending.
Explore Affordable Accommodations
Accommodation expenses are one of the major drains on your budget when studying abroad. Dorms or residence halls offer convenience and a chance to meet classmates quickly. However, they can be pricier. Going for off-campus apartments can give you more independence, but you’ll still need to consider rent, utilities, and commute costs.
Consider living in shared apartments, which can be more affordable while still providing a community experience. Sharing an apartment with other students cuts living costs and also helps you make new friends
Join online Facebook groups where you can easily find accommodation availability and their prices. These groups are usually filled with posts from other students seeking people to share an apartment or for temporary tenancy. You can also find accommodations through rental websites like Nestpick, DigsConnect, and AmberStudent.
Be Smart With Health Insurance
Most schools require international students to have health insurance. Understanding all the inclusions and exclusions in your health insurance policy can help you avoid unexpected costs. Your school might offer a basic health plan, so check if it covers your needs. If not, compare additional plans to find coverage for extras like prescriptions or specialist visits.
Consider your health history – if you have pre-existing conditions, choose a plan that provides enough coverage. By using your health insurance wisely, you can manage your medical costs better and ensure that you are protected when you need medical care.
Find a Part-Time Job
Working part-time can be a great way to make some extra cash without affecting your studies. When looking for work, try to find something that fits your class schedule, like a job on campus, tutoring, or doing freelance work. Before you start job hunting, make sure you check the rules on your student visa to see if you're allowed to work.
It’s important to balance your time between working and studying. A part-time job provides financial support as well as work experience that is helpful in enhancing your resume.
Save on Daily Expenses
For international students planning their finances for the first time, reducing expenses plays a key role. Cooking at home and taking public transportation can lead to big savings over time.
Students may also hunt for discounts on groceries and entertainment. They can pick cheap phone plans with international call credits, or message using social media apps via WIFI to cut data costs. Keeping check of your spending often lets you track where your money goes and helps you make better choices.
Make Use of University Resources
Take advantage of all the services your university offers. Talk to college counsellors about financial aid and scholarship options. They are experts at finding financial aid opportunities and might know ways that help lessen your expenses.
Your university career centre can assist with job opportunities and internships. Many universities provide academic support like tutoring centres and writing labs for free. Additionally, your university may provide free or low-cost health services, counselling, and mental health support. Keep looking for ways to minimise your spending, as every little bit saved will help you make your budget last longer.
Responsible Use of Credit Card
Credit cards are a convenient way to pay for things while you are abroad, but it is important to use them carefully. If you use your card for necessary everyday purchases such as groceries and pay it off completely each month, it can actually help build a good credit score. This shows how trustworthy you are with borrowing money.
Credit cards can be risky, however, and you should not spend more than you can afford to pay back. Use your card wisely and pay it off in full to avoid getting into financial trouble.
Understand Exchange Rates
Exchange rates determine how much your home currency is worth in the local currency. For instance, if your home currency weakens against the currency of your study destination, you may need to pay more for tuition fees and cover daily expenses. According to a report by Wise, international students have overpaid US $437 million as a money transfer fee. When transferring funds from your home country to your study destination, fluctuations in exchange rates can impact the amount you receive.
As an international student, understanding the impact of exchange rates is important for managing your money effectively. It helps to create an accurate budget and allocate funds effectively for rent, food, and other expenses. Exchange rates are dynamic and can fluctuate due to economic factors. So, monitor these rates to avoid getting any surprises and make the most of your resources while studying abroad.
Conclusion
The experience of studying abroad can be truly enriching and rewarding. You can make the best of your overseas stay by simply planning your finances. The tips above will help guide you towards practical management of your finances, saving methods, and gaining financial freedom during your study abroad period.
If you need any help with financing your international education, Prodigy Finance can be a valuable resource to help you achieve your academic goals. They also offer flexible repayment options to international students and help them by providing competitive interest rates.
FAQs
How to calculate a student budget?
To figure out a student budget, keep track of what you earn and spend. This covers money from scholarships, grants, loans, help from home, or part-time jobs. Don't forget about regular costs like rent, bills, school fees, food, getting around, hobbies, and travelling. You can also create a spreadsheet to keep a close eye on your savings and expenses.
Can I start a business as an international student?
You have several opportunities to start a business while studying in another country. You could teach younger kids, sell used books and other items, make and sell crafts on sites like Etsy, or offer your skills on freelance websites. Starting a YouTube channel is always an option too. You can also look for internships.
Which country provides better work opportunities on a student visa?
There's no one best country for everyone - it depends on what you're looking for. Some counties that let international students work part-time are Australia, Canada, USA, UK, and Germany, among others.
Can I build a strong credit score as an international student?
Yes, but it might be challenging. First, check your credit report to know your existing score. To build a credit score, get a student credit card, use it responsibly, and pay your balance in full each month to build your credit history. You can also request a family member or close friend with a high credit score to make you an authorised user of their card.
Do international students need to file taxes?
It depends on the country's tax laws where you are studying. In the US, international students are liable to pay taxes depending on their compensation, stipend, or any other income.
Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Prodigy Finance loans are offered to eligible borrowers and these loans are governed by English law.
