Studying abroad is a life-changing investment. Travelling the world, discovering new cultures and making lifelong friendships are just a few of the invaluable benefits you will experience.
Careful budgeting is key to getting the most out of your international adventure. By staying on top of your finances, you’ll have a more enjoyable and insightful experience.
What is a student budget?
It is a breakdown of all the money you receive and the money you spend. It helps you estimate & plan your expenses so you don’t end up spending more than you have.
Budgeting Tools for Students
Before you fly, you need to do some research. Find out the average cost of living in your dream destination. Websites like numbeo let you compare the cost of living in different cities and countries so you know what to expect before you go.
Once you have a rough estimate of the cost of living in your new country, you can consider other expenses like fees for tuition and rent into an online student budget calculator. This will provide you with a more accurate prediction.
You will understand the true cost of studying abroad only after you arrive in your host country. Once you’re settled in, you can track your spending with a budget spreadsheet.
Approximately 75% of the students surveyed were concerned about finances, and 67% said financial worries were affecting their mental health. International students are often more aware of the absence of friends and family and the additional costs of studying abroad.
Having a budget doesn’t mean your money is in order, but it does mean you have a plan on how to get your money in order. A budget to keep track of your income and expenses is how you control the income and expenses; You know where your money is instead of wondering where it went.
What to include in student budget
Dividing your expenses into essential and non-essential costs is one of the easiest ways to organize your budgeting plan.
- Essential costs are items or services that you need to purchase. You should prioritize these needs in your budget.
- Non-essential costs are items or services that you enjoy but which is not necessarily needed.
Here is a lists of the essential and non-essential costs most overseas students face:
Essential costs includes: Tuition fees, accommodation, utilities, groceries, mobile phone, wifi, tv, insurance, visa application fee, books and academic supplies, transportation etc.,
Non Essential costs includes: Clothing, haircuts and beauty products, gym membership, dining out, household supplies, nights out, music and film subscription services, sports club membership fees and kit etc.,
It makes sense to have a small emergency fund in your budget. Hopefully you never need to use this fund, but it could cover the cost of urgent medical care or an unplanned flight home.
How is a student budget calculated?
- Calculate your total income: It’s money you received from loans, scholarships, income from part-time work, savings & contributions from parents.
- Subtract your essential expenses: Subtract the total cost of your essential expenses from your total income.
- Disposable income: The remaining money which is subtracted from the total money is a disposal income from which you can spend on non-essential items and services.
Top 5 money-saving tips for students during their stay
- Cheapest mode to travel: Buy a bike, take buses instead of trains and book flights well in advance. If you travel frequently, consider investing in a multi-ride card.
- Look for Financial Aid: You may be eligible for a variety of financial aid packages, including scholarships, grants & many more. If you do some research on these things, you might get financial aid from other sources.
- Earn money while you learn: If you feel the pinch, you might consider looking for a part-time job. This is a useful way, but don’t let it get in the way of your education.
- Take advantage of student discounts: Many shops, restaurants and some entertainment venues offer students deals & discounts. Remember to show your student ID before paying so that you might get discounts.
- Cook yourself: Cooking at home is a great way to save money and improve your culinary skills. and buy more frozen rather than fresh.
