Studying abroad is one of the most exciting things you can do, but with it comes a few more financial challenges. Creating a solid budget is key to avoiding stress and staying focused on your studies.
Whether you’ve applied to study abroad or are thinking about doing so in the future, this guide will give you the information you need to understand how to budget for overseas studying, as well as how specialist money transfer providers can make the process easier.
Understand the cost of studying abroad
In addition to your loans for study, you’ll be paying for housing, food, transport, insurance, books and visa fees – not to mention leaving some money aside for emergencies.
Ask yourself a few questions about your ideal experience when you are travelling abroad:
- Will you need a maintenance grant/loan or need to receive money from home? In which case you should remember the impact that exchange rates can have on this and think about comparing providers to make sure you’re getting a good deal on transfers.
- How much will you want to travel when you are abroad? Chances are you won’t want to stay in just one place, but factoring in more travel will mean spending on transport, accommodation and potentially insurance.
Creating a system for tracking your budget
It’s a good idea to create a spreadsheet that helps you understand the typical amount you are likely to spend on regular purchases, groceries or accommodation each month, and then compare this with the finances you are likely to have available. Don’t forget some of the more significant upfront costs for things like flights and rental deposits.
A good way to break down the different spending categories could be as follows:
- Rent and utilities
- Food and groceries
- Transportation
- Health insurance and medications
- Study materials
- Travel and leisure
- Emergency savings
Know where your funding is coming from
If you’re studying abroad, figuring out your funding can be a bit more complex than if you’re studying at home. However, depending on where you are looking to study there are some options available to help ease this process.
If you are already in higher education in the UK, you’ll want to talk to the university’s study abroad department, which provides information on the funding they can offer students on work placements overseas, including things like scholarships, grants and bursaries.
Prior to Brexit, the UK was part of the EU's Erasmus+ student exchange scheme, but has since been replaced it with the Turing Scheme, which offers grant funding to education providers to support students or people going on work placements in other countries. You can find out more about this scheme on the gov.uk website.
A number of providers exist that let you apply for international funding for study abroad. Comparison sites such as International Student Loan can help you find and compare loans that are available for foreign and study abroad students.
You may be receiving funding from your family or using personal savings, in which case you will likely need to think about how to transfer this money internationally. FXcompared will allow you to compare providers for this purpose.
Plan how and when to transfer money
If you’ll be receiving money transfers from home while you are abroad, taking a few steps to organise this will help you in the long run. It’s a good idea to:
- Set a schedule for when you’ll need funds – for example will you need money once a month or once a quarter?
- Compare providers to get better rates – remember to keep doing this in case rates change in the future. You can easily compare the cost of sending money across borders through FXcompared’s money transfer comparison tool.
Use tools to manage your money abroad
A number of tools are out there that you can use to manage money abroad, including:
- Budgeting apps such as Splitwise can help you split the cost of meals and other events with friends.
- Banking apps with local and international access. Many digital banks may also offer fee-free international money transfers.
- Several apps can also help you track currency movements, helping you see when rates are improving (or, you can use FXcompared to track rates).
Compare money transfer providers for paying student loans abroad
In short, here are the key things to remember when budgeting to study abroad:
- Review your budget monthly and adjust as needed.
- Take advantage of student discounts.
- Always compare providers before you transfer money abroad.
Studying abroad is an investment, and handling your finances correctly is the best way to get the most out of that investment. Whether you are sending money abroad for tuition fees, paying rent or bills, FXcompared can help you take the stress out of comparing money transfer providers. Use our comparison checker to compare rates in seconds.
