Five ways to manage finances while studying abroad

Studying abroad is a common aspiration that crosses the minds of most students, especially when they enter secondary school. Some dream about it while others make it their mission to study in one of the finest foreign universities.

According to the Reserve Bank of India data, expenditure by Indian families on overseas travel and education has witnessed an upwards surge of over 60 percent year-on-year. There is, however, no denying that the entire process of studying abroad requires one to be extremely mindful from day one of research. Questions about the choice of the course, admission procedure, funds, and finances, among others, must be addressed before making an informed decision.

However, what bothers most is the uncertainty and confusion about finances while studying abroad. Money management is a critical part of a student’s life in a foreign country as it can be quite an expensive affair. By planning it well, students can successfully manage their future endeavors with ease and eventually learn how to spend money in a sensible manner.

Here’s a list of 5 points that a student should keep in mind before flying overseas for higher education:

Currency exchange

Money exchange must be taken care of before students set off on their new adventure abroad. Since currency rates keep fluctuating from time to time, you must get your currency exchanged in your home country through government banks and authorised money exchange agencies. These institutions charge low as compared to exchange centers at airports and tourist areas.

Avoid carrying extra cash

Remember, carrying extra cash can also make you a victim of paying unnecessary fines at the immigration counter. Although basic research will give you relevant information about it, some students still fall prey to this and end up paying extra. Keep ample cash, but also be mindful of legal limits.

Forex essentials

A forex card plays a key role when it comes to conducting safe and secure transactions in a foreign country. It is also a great tool to track expenses and keep a check on unnecessary cash movements. Moreover, it acts as an identity card for the students to avail exclusive discounts. Most importantly, it allows you to pre-lock a fixed exchange rate, making you resistant to fluctuations happening there.

Open a student bank account

Opening a student bank account in the host country should be a priority once you step in. It will help you pay semester fees without any hassles and also save you from transaction charges on your international debit/credit cards. A student bank account also offers myriad benefits to outside students, which many of them miss availing due to lack of awareness.

Use a card without transaction charges

Always check whether the credit card you are going to opt incurs any sort of penalties or extra charges for outside transactions or not. It is strongly advisable to choose a card that charges the least or zero fees. This will help you save money while securing payments for expensive purchases and keep a check on the budget.

Apart from the aforementioned guidelines, it is also sensible to look for a job while studying abroad as it will add fun to your overall foreign study experience while increasing your purchasing power. Taking up freelance projects and assignments are also great options as they will help you gain more knowledge in your respective domain and open doors to newer opportunities while studying there.

(The author is Co-Founder, and CEO, University Living.)