Studying abroad is a dream come true for many, but it can also be a financial nightmare if you don’t plan and manage your money wisely. However, with the right money management tips for students, you can easily navigate the world of finance and make the most of your time in a new country.
Careful budgeting can help you to easily manage the cost of living when studying abroad and make your experience more enjoyable.
Start by calculating your income and expenses. This will allow you to set a realistic budget, and it will give you an idea of how much money you have left after settling into your new living situation.
If you’re looking for a way to increase your income, consider working part-time while studying. Most countries allow international students to work up to 20 hours a week, and this can help you to make ends meet while still getting to enjoy the new culture.
If you are planning to study abroad and worried about managing finances, we can help you. In this article, we will show you how to manage finances as an international student. Apart from that, we will also share some amazing money management tips for students.
Why Managing Money for Students Is Important When Studying Abroad?
The financial challenges of international students can have an impact on their academic performance, mental and physical well-being, and post secondary success. Moreover, poor financial management can prevent students from completing their degrees and finding employment after graduation.
Making a budget and using it effectively are essential money management skills. They can help you live within your means and avoid unnecessary debts while studying abroad.
Developing a budget can also help you save money for emergencies and unexpected expenses. This will be especially important when living on a student budget, where your income is limited, and you have many new expenses. You can also use money management tips for students to save money when studying abroad.
Managing Finances Using Student Budget
If you want to manage finances when studying abroad effectively, the first thing you need to do is make a student budget. It is one of the best money management tips for students. A student budget is a plan that helps you keep track of your income and expenses. This way, you can make sure you don’t spend more than you have coming in.
A student budget is a great first step to managing your money, and it’s a skill that you can carry with you throughout your life. It’ll help you feel more in control of your money and prevent unexpected financial burdens from weighing down on you as an international student or young adult.
Expenses and Costs to Include In Your Student Budget
International education can be expensive, especially if you’re paying with loans. That’s why it’s important to set up a budget to keep your spending in check. Here are some things you need to include in your student budget.
- Essential Costs
When creating a budget, it is important to list all expenses. Firstly, you need to identify and list all the essential costs and expenses. These are necessary things that you need to prioritize in your budget. Here are some essential expenses incurred by most international students.
- Tuition fees
- Visa application fee
- Accommodation cost
- Books and academic supplies
- Cost of utilities (electricity, gas, water, etc.)
- Mobile phone
- SIM card plans
- Wi-Fi and TV
- Non-Essential Costs
Non-essential costs are expenses that can be categorized as things you want but are not necessary. Streaming subscriptions, coffee runs, and clothes can fall into this category. Here are some non-essential expenses incurred by most international students.
- Dining out
- Haircuts and beauty products
- Household supplies
- Gym memberships
- Sports club
- Hobbies (music gigs, movie tickets, games)
- Night out, clubbing and partying
- Music and movie streaming services subscription
- Leisure activities, trips and travels
Calculating Student Budget
After you create a list of all the expenses you need to add to the budget, it is time to calculate the income and expenses. Here are some steps you need to follow in order to calculate your student budget.
Step 1: Calculate Your Total Income
If you’re planning to go to college overseas, it’s important to know how much money you can afford. This will help you set up a budget to stay within your means while still having enough to enjoy life. Your total income is made up of everything you receive. It will include loans, grants, scholarships, contributions from parents, savings, salary from a part-time job, etc.
Step 2: Deduct Your Essential Costs
A student budget must include the essentials, including food, housing, transportation and tuition fees. Once you list down and calculate the total essential costs, you need to deduct them from the total income.
Step 3: Calculate Your Disposable Income
Disposable income is the net amount you save after deducting essential costs from total income. This is the remaining money that you can spend on non-essential items. Make sure you follow money management tips for students to use the money wisely and save something aside for unforeseen circumstances.
10 Best Money Management Tips for Students to Manage Their Finances
Studying abroad can be expensive, and international students often struggle with finances. However, there are ways to manage your finances while you study abroad. Here are some effective money management tips for students that will help you to make the best out of your student budget.
- Create A Budget
It’s important for international students to have a budget that works for their lifestyle. Having a budget can help you save money while studying abroad and manage any unexpected expenses. It is one of the best money management tips for students. When creating a budget, start by identifying all of your sources of income. This includes financial aid such as scholarships, loans, family support, savings and a part-time job. Once you have these sources of income, create a list of all your expenses. This can be done using a spreadsheet or an app.
- Look For Financial Support
When studying abroad, it is essential to look for financial support. There are many ways to find scholarships and grants to help you pay for your studies. The first thing you should do is research the scholarships that are available in your field of study. These scholarships may be offered by the government, universities, or private organizations. Once you have found these scholarships, you can apply for them. Make sure that you fill out each application and submit it on time.
- Find The Cheapest Way to Travel
While it may be hard to budget for an entire semester abroad, there are ways to save money and maximize your travels by using the best money management tips for students. You can do this by making wise decisions and taking advantage of special deals and discounts. For example, you can also book their flights during the off-season, when fares are lower. Apart from that, you can use public transport like buses and trains to travel locally. You can also invest in a bike to travel around.
- Set Up A Local Bank Account
Having a local bank account can be a great help to overseas students as they can easily pay their bills, withdraw cash from ATMs and use debit cards. It also saves them money on conversion rates and foreign transaction fees. Another reason why it’s a good idea to set up a local bank account is that it can help build a local credit history. If you want to open a local bank account in UK, we can help you. At Remigos, you can easily open a UK bank account from the comfort of your home. You can enjoy features like free international wire transfer, mobile banking and a free debit card with the help of Remigos.
- Work While You Study
Working while studying abroad is one of the best money management tips for students. It can also give you valuable social and professional experiences. Students who work part-time while studying abroad can help reduce the financial burden on their student loans and save some of their money for the future. This will allow them to focus on their studies instead of worrying about their finances.
- Take Advantage of Student Discounts
One of the best money management tips for students is to take advantage of student discounts. These offers can help you save on your groceries, subscriptions, and travel expenses. Many large big-box stores and online merchants offer a variety of discounts for students. You can also subscribe to Amazon Prime Student for six months free. This includes faster shipping, Prime Video, and a variety of other services.
- Cook at Home
Cooking at home is a great way for overseas students to save money and avoid spending large amounts on takeaways. The main benefit of these money management tips for students is that they can make healthier meals and avoid chemicals, salt and fats, which are usually used in pre-made food. The other advantage of cooking from scratch is that it helps you control what goes into your food. Moreover, this means you can tailor your dishes to suit your dietary needs.
- Go For Shared Accommodation
Shared accommodation is one of the best money management tips for students. Student housing is the largest expense for most students, so it’s crucial to choose wisely. You can opt for university dormitory-style rooms, catered accommodations or a private apartment with an ensuite bedroom. The best place to find shared accommodation is on your university’s website.
- Get Local Transport Passes
One of the best money management tips for students is to get a local transport pass. You can purchase a metro card, a subway pass or even a bus ticket that is valid for the entire city. It is a great way to save time as you can skip the line at bus and train stations. You can also show your student ID to get discounts on local transport passes.
- Be Smart With Your Money
While studying abroad, it is important to be smart with your money. This will help you stay financially stable and prevent unexpected expenses from arising. Here are some money management tips for students to manage finances when studying abroad.
- Use second-hand books or digital copies
- Join a library
- Avoid using credit card
- Shop during the holiday season
- Purchase from local stores
- Choose social activities wisely
- Use a bike to travel locally
- Pay your bills on time
Best Part Time Jobs in UK for International Students
The cost of studying in the UK can be quite high, including rent, food, grocery bills and miscellaneous expenses. Moreover, this is why you should follow the best money management tips for students. Part-time jobs can help international students recoup some of the costs, ease financial stress and also give them work experience.
Here are some of the best part time jobs in UK for students.
- Waiter/ waitress
- Teaching Assistant
- Retail Worker
- Dog Walker
- Prep Cook
- Customer Service Executive
Best Part Time Jobs in London for Students
Most London universities have on-campus placement cells, which offer a range of support to students seeking part-time work, including helping you to write a CV that will be attractive to employers and finding opportunities that suit your study schedule.
Here are some of the best part-time jobs in London for international students.
- Call Centre Agent
- Marketing Intern
- Teaching Assistant
- Student Midwife
- Catering Assistant
- Nursery Assistant
Studying abroad is a life-changing experience, but it also involves a huge financial investment. Whether you’re paying your own tuition or getting an allowance from parents, it’s important to follow money management tips for students. The best thing you can do to manage finances is to create a budget. It can be difficult to estimate how much money you’ll need for school, especially during the first semester. This is why it’s also crucial to set a budget and stick to it. Write down all the money you regularly receive each month and deduct all the expenses. Moreover, it will help you to know how much money you can use for other non-essential expenses.