As college tuition continues to rise at U.S. universities, American students are looking for ways to cut the costs of higher education. Increasingly, students are finding more favorable tuition rates at colleges overseas, which means more and more American students are leaving home to study internationally.
Studying abroad offers dozens of advantages, from increased independence to cultural exchange, but even with the tuition savings, international students need to be careful with how they spend their money. Though the cost of college may be lower, unexpected factors can drive monthly expenses higher than students expect, which means students need to learn how to manage their finances effectively while they pursue their degrees.
The choice to become an international college student is a difficult one. Before any student makes the decision, they should take a few crucial steps to strengthen their financial position before and during their studies abroad.
Research Cost of Living
The cost of living is the amount of money required to cover basic necessities like accommodation, food, transportation, and healthcare. Various factors impact these costs, such as local economic activity or regulations. Students can find information about regional living costs online, using tools like cost of living calculators that compare costs between a student’s hometown and their intended destination. This information makes it easier for students to draft effective budgets that keep them financially safe for their entire college career.
Understand Exchange Rates
Most countries have their own currency, and all international travelers must convert their money into the local currency to make purchases. Unfortunately, exchange rates aren’t always favorable; in almost every case, more of one currency converts to less of another currency, and plenty of students find that what they thought would be a functional budget is not nearly enough after conversion. Though exchange rates fluctuate, they typically don’t shift rapidly, and students can get a sense of the value of their dollar in their destination country with online research.
Develop Credit
Most developed countries use some system for scoring an individual’s credit. A favorable credit score may be necessary for students looking to fund their overseas studies with loans or secure certain types of housing. Students can begin building their credit at home before they become adults, but U.S. credit scores don’t travel. Students who expect to remain overseas for several years may need to build their credit from scratch in their target country.
Open a Local Bank Account
The first step to developing credit is opening a local bank account, and there are additional advantages to having a bank account located in one’s destination country. It is much faster and easier to deposit and extract money from a local account, and accounts at local banks will not impose currency conversion fees that can drain savings. Many financial institutions create accounts expressly for students, with lower fees and services that could be useful to those focused on studying rather than earning income.
Maintain Emergency Savings
It is one thing to choose to study abroad; it is quite another thing to lack enough funds to go back home. International students should carefully guard their emergency savings, making sure to keep at least enough on hand to pay for a plane ticket home. There are several reasons students might need a last-minute flight, from global catastrophes to family crises, and it will be comforting to have the ability to get home fast.
Find Student Discounts
Because students rarely have overflowing bank accounts, many businesses at home and abroad will offer students generous discounts on products and services — and international students should absolutely take advantage of every opportunity to save money. In fact, whenever students need to make any kind of purchase, they should research or inquire about the opportunity for a student discount. Many shops will happily offer small discounts when asked, even if they don’t have a formal student discount in place.
Generate Income
Student loans, scholarships, and grants might cover the essentials of living and studying in a foreign country, but students who want to do more than attend classes while abroad may want to work to earn a bit more spending money. Working while studying also provides students with opportunities to broaden their professional network and gain valuable skills that can support their careers after graduation. To account for shifting school schedules, students might look for temporary work options, which provide income without any long-term commitment.
Tuition isn’t the only concern for students pursuing higher education. Though schools overseas may have lower costs for courses, there are other expenses students need to consider to maintain financial health as they earn their college degrees. With the right preparation, it is possible to survive and thrive as an international student — and gain all the benefits of an international college experience.
SEE ALSO: Getting Into a U.S. College As An International Student
