Managing Finances Better While Studying Abroad

In an increasingly globalised world, more students are choosing to broaden their horizons by studying abroad. Studying overseas can be transformative, offering many benefits, from academic excellence in a global setting to cultural immersion and personal growth. 

According to India Today, around 8.5 lakh Indians pursued education in foreign countries, a number projected to grow by 8% annually.

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As exciting as it sounds to study abroad in countries like the USA, UK, Canada or Australia, it comes with a fairly heavy price. A combination of high tuition, living expenses, and potential currency fluctuations can create significant financial strain. 

However, investing in your future starts with smart financial planning.

Here are a few smart and practical tips, from budgeting essentials to clever strategies that can significantly boost your financial security

8 Smart Tips to Save Money While Studying Abroad

Let’s look at some ways that you can save money while studying and relieve your financial burden while studying abroad:

• Budget Your Expenses & Plan for Contingencies:

Crafting a realistic budget is the foundation of intelligent financial management abroad. Allocate funds for essentials like rent, food, transportation, and utilities. Additionally, budgeting for textbooks and occasional entertainment should be considered. 

Research to determine the average costs in your destination city and factor in a buffer of 10-15% for emergency expenses.

• Obtain Medical Insurance:

Medical emergencies can be financially devastating. Investing in the best health insurance for students studying abroad that provides coverage for doctor visits, hospitalisation, and medications is essential. 

Remember, prevention is key – bring along some essential over-the-counter medications you might need. 

For instance, Health insurance in the USA typically costs around INR 10K to 13K (or $140 to $165) monthly, and making this one-time investment can save you thousands of dollars in a medical emergency. 

• Use Student Discount Cards:

Embrace your student status! Many restaurants, cafes, museums, and transportation services offer significant college student discounts. Be on the lookout for student ID cards or inquire about student discounts when making purchases. Utilise student discounts to stretch your budget further and experience the local scene at a reduced cost. 

TOTUM Card: This UK’s leading student discount card offers deals on everything from fashion and technology to restaurants and travel. It comes in free and paid versions, with the paid option providing access to exclusive discounts and a free tastecard for restaurant savings.

• Get a Local Bank Card:

Opening a local bank account for Indian students studying abroad can save you money on foreign transaction fees and simplify managing your finances—research banks with student-friendly features like low fees and widespread ATM networks. Consider fees associated with account maintenance and international withdrawals before choosing a bank.

Nationwide FlexStudent, HSBC, NatWest, and Santander are bank accounts for Indian students studying abroad. All offer student accounts with varying features and benefits. Research their websites or visit a branch to compare options.

• Seek Affordable Accommodation: 

Accommodation is often a significant expense. Explore options beyond traditional dorms. Consider shared apartments, homestays, or student residences with lower costs. Research different neighbourhoods for affordable student housing. 

Accommodation in Canada costs between INR 2L and 13L annually (USD 2500 and USD 16,500), depending on your preferences and location. 

• Use Public Transportation:

Public transportation is typically cheaper than taxis or ride-sharing services, so you can save money while travelling. Invest in a monthly bus, subway, or train pass for significant savings. Explore walking or cycling for short distances. Public transportation saves money and lets you experience the local culture and witness the city firsthand.

In Australia, the student pass in Adelaide Metro Card costs approximately INR 1500 per month (AUD 28.60).

• Consider Part-Time Work:

Working part-time can ease your financial burden and provide valuable work experience. Check visa regulations regarding student employment in your host country. Explore options like tutoring fellow students, freelance writing, or remote work that aligns with your skills. Extra income allows you to explore more of the city, reduces financial stress, and helps build your resume.

In Singapore, private tutors usually charge between INR 1800 and 2500 (SGD 20 to 30) an hour. If you conduct 3-5 sessions weekly, you could earn INR 7,000 to 12,000 weekly.

• Seek Scholarships and Grants:

Scholarships and grants are a fantastic way to offset the financial burden of studying abroad. Your university, government agencies, private organisations, and even your home country offer research scholarships. These can significantly reduce tuition fees, living expenses, or travel costs. The application process can be competitive, so start early and tailor your applications accordingly.

In the USA, numerous scholarships, such as the Fulbright Scholarship, are available to help reduce your educational costs. Similarly, you can benefit from scholarships like the Commonwealth and Chevening Scholarships in the UK.

Spend smartly, not rashly.

Going away to university is often the first time many students are in charge of their own finances. However, considering these tips and thinking carefully before making purchases, you should be able to manage your finances effectively. 

Financial management in college isn’t an exact science, but as long as you apply these general principles, you should be fine.