Choosing to pack your bags and spend a semester, a year, or even your entire college degree at an educational institution abroad is an amazing opportunity to learn about new cultures through full cultural immersion, practice your language skills, and gain amazing life skills.
It’s a unique experience that makes college life extra rewarding and will be something you remember for the rest of your life.
However, studying abroad is a big prospect financially, and budgeting for life in a different country brings a whole new level to managing your finances. This can be a daunting prospect for many students and is even offputting to some.
But while planning your finances for a year of study abroad might be on a whole new level to deciding on spending money for your Spring Break in Mexico or budgeting for a short vacation cruise from Tampa, with a little planning it doesn’t have to be an overwhelming task. Here’s a guide to help you plan and budget for studying abroad.
8 Essential Tips on How to Budget for Studying Abroad
1. Research Your Destination
Before you begin your overseas study adventure, you should take the time to discover everything there is to know about your chosen destination, particularly when it comes to the cost of living. Look at factors like rents, public transport costs, the price of groceries, healthcare provision, and what the local entertainment costs are like.
You should also do some research into student-friendly options to discover if there are discounts or offers that you can take advantage of to help you make your budget go further.
2. Create a Budget
Unsurprisingly, the most important part of budgeting for student life abroad is creating a budget! A detailed document that outlines your estimated expenses and income sources will help you plan for life effectively and work out where you need to save, where you might need to find extra sources of income, or where you can splash out a little!
List all your potential expenses, from tuition fees and accommodation costs to travel expenses and weekly food shops, and always err on the side of conservatism to avoid nasty financial surprises. It is always better to end up with more money left than you were expecting! It is also a very good idea to allocate a portion of your budget for emergencies or unexpected costs, just in case.
3. Explore Financial Aid Options
There are a wide variety of grants, funds, and financial aid options that students moving abroad can take advantage of, which can be a huge help when it comes to making your experience more affordable.
From scholarships and fellowships offered by institutions back home for government funding or financial aid offered by the university or college you are attending, there are plenty of ways to boost your funds and help cover tuition fees, textbooks, and even living expenses.
4. Track Your Spending
Tracking your spending helps you stay on top of your budget and lets you be dynamic about your projected expenses. By keeping track of what you spend you can be more mindful about staying within budget, as well as making adjustments to your initial estimates if they are more or less than you expected. Reviewing your monthly spending helps you find areas where you can cut back, as well as identifying aspects where you can afford to be more generous to yourself!
5. Plan for Travel and Leisure Activities
One of the best things about studying abroad is the chance to explore new destinations and have incredible and different cultural adventures. However, all this having fun and broadening the mind does cost money, and it is important to consider how much you will want to spend on leisure and entertainment when you are putting together a budget.
Before you go it is worth taking a look at the affordable transport options that exist in your chosen destination and setting yourself a budget for fun that will allow you to travel and enjoy yourself while still staying solvent. Luckily, as a student you will have access to a variety of deals and discounts on transportation, attractions, and events, meaning you can usually make your money go further.
6. Be Mindful of Currency Exchange Rates
Don’t forget that the value of the money you spend as an international student will fluctuate as the exchange rate changes in relation to your savings back home. This can have a surprising impact on the cost of living and your tuition fees if you are paying from an account back home, so it is always worth being mindful of currency exchange rates and considering taking steps to avoid losing out, or to take advantage of favorable rates.
If the exchange rates go significantly in your favor, consider transferring a chunk of money across to a bank account where you are studying, to help make your studies and your lifestyle even more affordable.
7. Consider Visa Fees and Immigration Costs
When setting your budget for your time studying abroad, don’t forget to consider the costs associated with applying for and obtaining the various permissions that allow you to study in the country, as well as the costs of entering and leaving the country.
In some cases, these costs will be minimal or non-existent, but for some destinations, the costs of securing a visa can be significant. You may need to pay admin fees, visa fees, and in some cases even take language exams, which also cost. So be sure to research visa requirements in detail in advance, and allocate the required funds to your overall financial plan.
8. Think About Healthcare and Insurance Costs
Making sure you are covered for healthcare and insurance is an important consideration if you plan to study abroad. While some countries have publicly-available health services that international students can access, others require students to demonstrate that they have adequate international student health insurance to cover them for any medical expenses they might incur during their time in the country.
Some countries even have mandatory health insurance schemes designed specifically for international students, which will be accessed through your academic institution. When you are setting your budget, make sure you investigate all these options to find out what you need to stay healthy and safe during your time abroad.
9. Seek Financial Guidance and Support
When you are planning your time overseas, managing your finances can seem daunting. You shouldn’t be embarrassed to ask for help and seek guidance and support to make budgeting and financial planning easier. There are a variety of sources of support, from financial advisors to university counselors and study abroad offices, and these experts can help you with advice and practical resources to make navigating the tricky financials of overseas study a far easier prospect.
Studying abroad can be an expensive business and comes with additional financial elements that make budgeting a more complex task. However, with a little forward planning and some careful research, budgeting for your overseas studies doesn’t have to be overwhelming and can be a useful part of your student adventure!
5 Countries Where to Study Abroad
Choosing where to study is an important part of financial planning for your education abroad. As you might expect, certain places are more expensive than others, and a year spent in Milan, Italy will likely involve a significantly higher financial outlay than a year spent in Mexico City, Mexico.
Finding a balance between affordability and academic excellence is a vital part of the process. Here are some of the most affordable places to think about when choosing where to study abroad that also offer a high level of further education.
1. Germany
The quality of Germany’s higher education system is renowned across the globe. With world-class institutions and surprisingly affordable tuition fees, it represents a fantastic destination for international students looking for affordable but high-quality education.
Germany’s system of public universities means that some international students can even benefit from tuition-free degrees, with only minimal administrative fees to take care of. Despite being an advanced European country with fantastic infrastructure and excellent public services, the cost of living in Germany is relatively affordable, particularly when compared to other European countries.
If you choose a university in one of the smaller cities or towns, you can combine an excellent quality of education and fascinating cultural immersion with a low-cost, high-quality lifestyle, making it an excellent value proposition for aspiring international students.
2. Spain
Spain is another great option for international students looking for somewhere affordable to study. In a similar way to Germany, Spain’s public university system means that tuition fees are far lower than in countries like Sweden or the UK, particularly for students from other EU countries, who can access even more favorable rates.
Outside of the big metropolitan areas of Barcelona and Madrid, the cost of living in Spain is extremely attractive, with food, accommodation, transportation, and entertainment all comparing favorably with most other countries in Europe.
Additionally, Spain itself is a wonderful place to live and explore, with a superb climate, a rich cultural heritage, fascinating history, and a dynamic, vibrant attitude to day-to-day life. It is a great opportunity for students to improve their Spanish, or for Spanish speakers from Latin America to get a European education without struggling with a language barrier!
3. Poland
While Poland might not be the first European destination that springs to mind when it comes to travel and exploration, it is an increasingly popular destination for international students. It has a well-established network of quality universities and a thriving student culture, as well as a wide range of degree courses taught in English.
Cost of living and tuition in Poland is significantly lower than the rest of Europe or the US, which means that international students in Poland will be able to live comfortably without breaking the bank. Poland is a fascinating and under-the-radar place to explore, with a rich history and a fascinating culture, and the locals are extremely welcoming to newcomers looking to get to know more about the country.
It offers a great and compelling mix of value for money and academic excellence, so it is no surprise that international students are increasingly casting their eyes to Eastern Europe in search of alternative places to learn.
4. Portugal
Portugal has a reputation as one of the most affordable and enjoyable places to live in Europe, and the same factors that make it a great place to move as a digital nomad or a remote worker make it a fantastic option for international students.
Accommodation and food costs in Portugal are far lower than in all other Western European countries, and the climate, culture, and landscape are all extremely attractive. The educational establishment in Portugal is perhaps not as well-known as in other places like Italy or France, but it has some superb universities which offer an excellent education with affordable tuition fees. As a result, it is a good idea to look at as a destination for overseas study.
5. Taiwan
If you are looking for a destination to study overseas that isn’t in Europe then you could do far worse than take a look at Taiwan. Emerging out from under the shadow of its larger neighbors, it is a wonderful and unusual place to go to university and has a number of benefits when it comes to affordability for international students.
For starters, it is comfortably the cheapest place to study in Asia, both in terms of tuition fees and in terms of cost of living. Secondly, it offers a wide variety of study options that are taught in English, which is important for international students in Asia as the language barrier can be a significant challenge.
These English-language degree courses include some of the most popular and attractive, such as engineering, technology, and business. Thirdly, the society and culture itself is a heady mix of vibrant modernity and ancient tradition, as well as delicious cuisine and some of the most impressive natural wonders in the region.
With all this going for it, it is hardly surprising that Taiwan has become such a popular destination for overseas students looking to learn in the heart of Asia.
In conclusion…
Studying abroad offers an unparalleled opportunity for personal and academic growth, as well as cultural enrichment that lasts a lifetime. While the investment may seem daunting, careful planning and budgeting can make the experience not only feasible but also immensely rewarding.