How to Budget 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 impossibly expensive. 

Once you've decided on your program and location, creating a realistic budget is very important as you prepare to study abroad. 

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 and steps for preparing to live abroad within a budget.

Make a Plan Before Departing

Instead of just spending whatever's in your bank, it's a good idea to plan out your spending based on some research.

To make budgeting easier, especially for your first month of expense, try using a spreadsheet to organize your budget.

It helps to group your expenses into categories. But instead of listing every single thing you buy, think about bigger groups like:

• Food and groceries
• Things you need before you leave (like visa fees or travel insurance)
• Getting around (transportation)
• School supplies
• Bills

After you've sorted them, you can figure out how much you'll have for things like daily living costs, fun activities, and any extra travel.

Read about how to pay for study abroad—the program costs before you're actually abroad.

Estimate Monthly Expenses

Once you've thought about your expenses overseas, you can figure out how much you'll spend on each item every month. 

This will depend on where you're studying abroad and the costs of living there. To be safe, it's always smart to overestimate your weekly spending.

You might find way to save money while you're abroad too. For example, consider getting a local mobile plan or SIM card and using public transportation often.

Remember to also include weekend and travel costs. Many students enjoy exploring their new city by visiting sights and taking short trips, so factor those into your budget!

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.

Once you're living overseas, definitely keep an eye on how much money you spend. Whether you use a spreadsheet or a budgeting app, a tool like this can help you make smarter purchases. By paying attention to where your money goes, you can easily see how much you have left.

Also, be aware that you will usually pay a fee whenever you take out cash or swipe a card! This cost should be part of your financial planning. It's a good idea to learn some tips for handling money when traveling to help reduce these extra charges.

There is a way to avoid foreign transaction fees.... Consider getting a travel credit card as we mention in our smart spending tips article!

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