How to Budget for Study Abroad

As a college student on a budget, it can be tough to save up money to study abroad while in school. However, studying abroad doesn’t have to break the bank. Once you’ve selected your program and destination, you can focus on figuring out how much you’ll need for your study abroad adventures.

Read on to learn how you can budget for study abroad and how to make the most of your money with our top money-saving tips!

The art of balancing your budget and spending responsibly is a challenge. Not only will you need to consider in-country spending costs, but you’ll also need to consider things such as travel insurance, visa fees, return flights, accommodation (if not provided with your program), and more.

After planning how much you’ll spend getting to your study abroad country and essential living expenses, you can start budgeting for your study abroad experience! From here, you’ll have to consider your lifestyle. Consider whether you’re an introvert who likes the simpler things or an extrovert who’s always keen to keep the itinerary flowing.

It’s best to overestimate how much you’ll be doing and spending, in order to minimize the chances of maxing out your budget.

Ask yourself the following questions to help decide how much you’ll need to budget for studying abroad:

• How frequently will you travel?: Studying abroad is an exciting venture, and turning down travel opportunities domestically or in nearby countries will be hard. Consider how often you’ll plan trips, and then research transportation and general accommodation costs.
• What activities will you engage in?: When studying abroad in a new city, the state of bliss when meeting new people, trying new cuisine, and watching cultural cogs turn can be consuming. It can be hard to resist navigating every inch of your second home.
• Eat out every day, or cook from home?: Some countries have a strong restaurant culture, where inexpensive street food and eateries lie on every corner. Others may have a higher cost of living, so you may need to tap into your cooking abilities.

Once you’ve considered your lifestyle abroad, you can now estimate how much you’ll be spending. Again, it’s best to play it safe and overestimate how much you’ll be spending!

Some of the main things which you’ll need to consider when estimating your monthly costs include:

• Rent: Study abroad housing is often covered by the program cost, however, some students will need to organize housing themselves. If you need to secure accommodation on your own, you’ll need to consider how the rent affects your budget and the rest of your plans.
• Groceries & household items: In addition to your food, you’ll also need to pay for toiletries, bedding, cleaning items, and more.
• Cell phone plans: Whether you opt for an E-sim or a physical SIM card in-country, it will be cheaper to buy a plan abroad than using your data from home. The good news is, that many pay-as-you-go plans abroad are substantially cheaper than in the US.
• Transportation: Think about your proximity to school and how you’ll get around. If you live close to your school or in a central location, walking can be your go-to. However, you may need to purchase a monthly bus or train pass if you live further away. Students often have discounts on public transport, so be sure to take advantage of those.
• Studying resources: Schools and colleges often provide resource materials for students, however, this isn’t the case for every institution. Some institutions may require students to cover their fees when it comes to purchasing materials required for the curriculum.

It’s important that you create a realistic budget plan based on your calculations and research, rather than spending according to how much money you currently have in your account. Once you’ve created a realistic pre-departure budget plan, then you can proceed to budget for your in-country lifestyle.

Here are some ways that you can create a realistic budget plan and simplify expenses before you leave:

• Put all your expenses in a Google sheet: It’s hard to estimate how much you’ll spend before you get there and during your first month. Put your expenses such as flights, visa, first month’s rent, deposit, transportation cards, and more in this sheet to give you a clearer picture of your budget for the following time studying abroad.
• Categorize items & costs: Instead of listing every expense you can think of, sort them into categories, such as pre-departure essentials, transportation, or class materials. Once you’ve categorized these, you can then consider how much you have to spend on living expenses, entertainment, travel, and so on.
• Set aside a portion for unexpected expenses: Don’t budget anticipating returning home with $0 in your bank account. It’s important that you set aside a buffer or a “safety net” for unexpected costs and emergencies.

Studying abroad doesn’t have to break the bank, you can apply for scholarships and grants to help minimize costs abroad. You may be able to find financial support at your local college, university, or your study abroad program, however, you can also access financial support right here at Go Overseas.

Thousands of dollars worth of scholarships go unclaimed each year, and this is because many students don’t know where to find them. Not only do we offer opportunities for study abroad scholarships, but we also give out tips on how to increase your chances of winning them.

Study abroad scholarships can cover tuition fees, living expenses, airfare, and other costs which can set you back. Better yet, you aren’t expected to pay them back!

Whether you like to write out every detail of your spending yourself or prefer to have automated tools do it for you, visual reports on your spending habits will allow you to know where you need to cut back or have some room to splurge.

If taking frequent weekend trips to visit nearby destinations is in your plans, it’s wise not to spend the extra money that can be put towards those fun excursions.

Consider downloading spending apps such as Splitwise, Monese, Goodbudget, or Plum to keep track of your spending. Some of these apps can be linked to your bank account and card, providing an accurate overview of your budget and spending habits.

Spending a few dollars here and there can add up, and it’s also easy to forget how much you’re spending with so many expenses to cover. Downloading a budget app will make your life much easier when it comes to managing your finances.

There’s nothing worse than being careful with your spending only to be hit with a whopping fine, hidden fees, or medical expenses. Accidents and unexpected expenses can happen anywhere in the world, so it’s best to prepare a safety net. You may find yourself requiring medical treatment, missing a flight, or having to pay an extra $200 for oversized baggage, for example.

It’s important to prepare a safety net in the event of unexpected costs. Should you encounter unexpected costs, this can ensure that you can continue your travels and study abroad experience sustainably. Allowing yourself around a $1,000 buffer can keep you afloat in the event of an issue during your time studying abroad.

If your budget allows it, consider grabbing some travel insurance, too. Your study abroad program may offer health insurance, but this insurance won’t cover you in the event of flight delays, cancellations, luggage damage, or other travel-related issues. World Nomads and Safety Wing are just some examples of travel insurance providers that can offer extra cover abroad.

Read more: Study Abroad Insurance: All You Need to Know Before You Go

Traveling isn't free, but that doesn't mean it has to be expensive. Whether booking flights to your study abroad destination or planning trips during your free weekends, consider these tips on how to minimize travel expenditure.

• Book cheap flights: There are many measures you can take to book cheap flights, from booking on specific days of the week to comparing airline prices.
• Become an expert researcher: If you're an investigative expert at home (like finding the best price for that jacket you wanted), you can be one abroad. Instead of flying, use Rome2Rio to find a cheap bus that provides a scenic ride to your next destination or go on a self-guided street food tour in place of high-end restaurants. Today, researching prices, value, and alternative options is easier than ever.
• Prioritize domestic travel over international: Instead of jetting off to other countries while studying abroad, consider traveling domestically. This offers cheaper modes of transportation and greater insight into your new home. It’s better to fully immerse in one country than to barely scratch the surface of multiple!

While applying for scholarships and creating a budget plan are ways to understand how much you have room to spend, there’s no reason not to save money while studying abroad.

Now that you know the steps to manage and keep track of your budget, consider these tips to save money on while studying abroad.

• Befriend locals: Befriending locals will enrich your experience in many ways. They’ll not only share cultural insights, but they can introduce you to inexpensive activities and hidden gems that your wallet will be thankful for. Making local friends and avoiding tourist traps – it’s a win-win!
• Explore by foot or public transportation: Although it may be cold, tiring, or time-consuming, navigating the city or town by foot can be an excellent way to see new things. Instead of whizzing by in an expensive Uber, consider getting around on foot to get your bearings and enjoy the community in your new home.
• Avoid bank fees: Consider getting an international card which can greatly reduce bank and transaction fees. Popular banks such as Monzo, Revolut, Wise, and Starling allow you to make transactions in-country and internationally without having to pay high fees.
• Consider a work-study or paid internship: While studying abroad, you may be eligible to work as a student. If you're qualified for this in your host country, it can be an excellent opportunity to help fund your weekend excursions! Typically, there’s a limit on how many hours someone on a student visa can work. Be sure to check with your host country's visa guidelines and your study abroad advisor, as you don't want to go against any of your student visa rules.
• Take advantage of student discounts: Students qualify for many discounts, whether it be for flights, transportation passes, restaurants, bars, cinema tickets, or anything else. UNiDAYS and Student Beans are popular platforms to see where you can benefit from your student discount.

Planning your study abroad can come with some legitimate concerns about the cost. While you may not be able to travel for free, there are plenty of ways to save money and maximize your budget through clever planning and smart decisions.

By choosing the right study abroad program, creatively managing your expenses, and taking advantage of special deals, you can enjoy your time abroad without breaking the bank!

Read more about studying abroad:

• How to Prepare for Studying Abroad: 10 Things to do Before your Trip
• 5 Ways to Study Abroad for Free or Cheap