Budgeting Finances While Studying Abroad

As a budget-conscious college student, saving enough money to study abroad while still in school might be difficult. However, studying abroad does not have to be prohibitively expensive. Once you've decided on your program and location, you can figure out how much money you'll need for your study abroad experiences. Whether you're participating in an international program in Los Angeles or Seoul, there are strategies to manage your spending effectively. Here are some tips for preparing for living abroad while staying within your budget.

Estimate Monthly Expenses 

After you've evaluated your lifestyle overseas, you can calculate how much you'll spend every month. It's wise to play it safe and overestimate your weekly expenditures. Students often spend money on meals, transportation, necessities, and residential products. Consider purchasing a local mobile plan or SIM card with minutes to quickly communicate with classmates and any business or school contacts while overseas.

Weekend and travel expenditures should also be factored in. Many study-abroad participants enjoy exploring their new city by visiting tourist attractions and taking short trips, all of which should be incorporated into total expenditures.

Make a Plan Before Departing

It is critical that you create a realistic budget plan based on your calculations and research rather than spending depending on how much money is presently in your account. Once you've prepared a reasonable pre-departure budget, you may move on to budgeting for your in-country expenses. To create a budget plan and simplify your spending before you depart, consider using a spreadsheet to outline all your expenses. Your first month and pre-arrival spending can be hard to predict, so a spreadsheet can help.

Categorize things and expenses. Instead of listing every expenditure, group them into categories like pre-departure necessities, transportation, or class supplies. After you've classified them, you can calculate how much you have to spend on living costs, entertainment, travel, etc.

Set aside money for unforeseen expenditures. Don't plan on coming home with $0 in your bank account. It would be wise to put aside a financial buffer or "safety net" for unexpected expenses and emergencies.

Prepare an Emergency Fund

Even with the best preparation, unexpected costs can occur. Something may go wrong, like the price of the things you intended to purchase going up or something breaking and necessitating a replacement. Whatever the case, saving money for a "rainy day" is a good idea so you don't feel trapped if something unforeseen happens.

Research and Save Money

One of the most admirable aspects of current technology is the abundance of methods to save money via research and various applications. Discover whether your favorite neighborhood restaurant has a rewards program or a point-earning system. When visiting tourist destinations, contact them to check if they have student discounts. Planning trips in advance helps you save money on hotels and airlines that offer special bargains.

Track Your Spending While Abroad

Use an online document or financial tracking app to manage how much money you spend when living overseas. A tool like this might help you determine whether or not a purchase you want to make is sensible and feasible. You can keep an eye on how much money you have left by paying attention to where you spend it.

Whenever you withdraw cash from an ATM or bank, be aware that you will incur a fee. This cost should be taken into account when managing your finances, so it's a good idea to learn some tips and tricks for handling expenses while traveling abroad.

Schedule an appointment with an SAF counselor to learn more about study abroad possibilities and put your financial knowledge to the test!