Studying abroad is one of the most rewarding investments you can make, but it doesn't take long for the "sticker shock" of living in a new country to set in. Between tuition and visa fees, the costs are high before you even board the plane. However, after a decade of advising students on their international journeys, I’ve seen that the difference between a student who thrives and one who faces constant financial stress isn't how much money they started with; it’s how they managed it once they landed.
Managing your finances in a foreign currency requires more than just skipping a daily latte. It involves strategic choices about where you sleep, how you travel between cities, and even how you handle your banking. This guide provides a comprehensive roadmap to stretching your budget without sacrificing the experiences that make studying abroad so transformative.
FTop Tips to Save While Studying Abroad
1. Build a Robust, Realistic Budget
Most students fail at budgeting because they make it too vague. Simply saying you’ll spend "£400 on food" isn't enough. You need to account for the setup costs that hit in the first month, things like bedding, kitchen supplies, and security deposits, which can easily derail a poorly planned budget.
The "Sheet" Method: Tracking Every Penny
While apps are great, I always recommend starting with a Google Sheet or Excel file. This allows you to visualise your entire semester or year at once. Divide your budget into fixed and variable costs:
- Fixed Costs: Rent, utilities (if not included), phone plan, insurance, and tuition instalments.
- Variable Costs: Groceries, social outings, weekend travel, and those "emergency" pharmacy runs.
Recommended Budgeting Tools
If you prefer digital tracking, YNAB (You Need A Budget) is excellent for students because it forces you to "give every dollar a job." PocketGuard is another great alternative that shows you exactly how much "spendable" money you have left after accounting for your bills. In the UK, many students use Revolut or Monzo, which automatically categorise your spending and help you see where your money is actually going in real-time.
|
Expense Category |
Estimated Monthly Cost (London) |
Estimated Monthly Cost (Berlin) |
Estimated Monthly Cost (Melbourne) |
|
Accommodation |
£800 - £1,200 |
€500 - €800 |
AUD 1,200 - 1,800 |
|
Groceries |
£200 - £300 |
€200 - €250 |
AUD 350 - 450 |
|
Public Transport |
£100 - £160 |
€30 - €60 |
AUD 150 - 200 |
|
Public Transport |
£150 - £250 |
€150 - €200 |
AUD 200 - 300 |
2. Strategic Housing: Beyond the Dormitory
Housing will be your single largest expense. In cities like Manchester, staying in university-managed halls might cost £500-£700 per month, which often includes utilities and Wi-Fi. However, as you move into your second year or if you're in a high-cost city like London or New York, you need to get creative.
- Shared Housing and Flatmates: Renting a room in a shared house (a "flatshare") is the standard way to save. Platforms like SpareRoom (UK), WG-Gesucht (Germany), and AmberStudent are vital resources. By splitting a three-bedroom apartment with two other students, you can often save 30% to 50% compared to living in a studio or a high-end private student complex.
- The Homestay Advantage: For students who want cultural immersion and lower costs, homestays are an overlooked gem. Living with a local family often includes breakfast and dinner in the monthly price. This not only slashes your grocery bill but also eliminates the need to buy furniture or kitchenware.
3. Mastering Local Banking and Avoiding Fees
One of the biggest "silent" expenses students face is foreign transaction fees. If you use your home country’s bank card for every purchase, you could be losing 3% to 5% on every transaction due to poor exchange rates and bank fees.
- Open a Local Account Immediately: As soon as you have your proof of enrollment and a local address, open a student bank account. In the UK, banks like HSBC, Barclays, and Santander offer student accounts that often come with perks like a free four-year railcard. Alternatively, "neo-banks" like Wise or Revolut allow you to hold multiple currencies and exchange money at the mid-market rate, which is significantly cheaper than traditional banks.
- Watch Out for ATM Fees: In many countries, using an ATM that doesn't belong to your bank can cost $5 or more per withdrawal. Plan your cash needs and use your bank’s app to find fee-free ATMs near your campus.
4. Eat Like a Local, Not a Tourist
Convenience is expensive. Ordering delivery through apps like UberEats or Deliveroo adds service fees, delivery fees, and tips that can double the price of a meal. A student in London who buys lunch daily might spend £200 a month, whereas meal prepping at home costs about £60.
- Bulk Buying and Discount Grocers: Identify the "budget" supermarkets in your area. In Europe and the UK, Aldi and Lidl are significantly cheaper than stores like Waitrose or Marks & Spencer. For bulk items like rice, pasta, and spices, look for local ethnic markets (Asian or Middle Eastern markets are usually fantastic for fresh produce at lower prices).
- The "Too Good To Go" App: Download the Too Good To Go app. It allows you to buy "Magic Bags" of surplus food from cafes, bakeries, and grocery stores at a fraction of the retail price. It’s an excellent way to get high-quality food while helping reduce food waste.
4. Eat Like a Local, Not a Tourist
Convenience is expensive. Ordering delivery through apps like UberEats or Deliveroo adds service fees, delivery fees, and tips that can double the price of a meal. A student in London who buys lunch daily might spend £200 a month, whereas meal prepping at home costs about £60.
- Bulk Buying and Discount Grocers: Identify the "budget" supermarkets in your area. In Europe and the UK, Aldi and Lidl are significantly cheaper than stores like Waitrose or Marks & Spencer. For bulk items like rice, pasta, and spices, look for local ethnic markets (Asian or Middle Eastern markets are usually fantastic for fresh produce at lower prices).
- The "Too Good To Go" App: Download the Too Good To Go app. It allows you to buy "Magic Bags" of surplus food from cafes, bakeries, and grocery stores at a fraction of the retail price. It’s an excellent way to get high-quality food while helping reduce food waste.
6. Save on Academic Essentials
New textbooks are a notorious money pit. A single medical or engineering textbook can cost over £100. Always check your university library first, as many offer digital versions for free.
- Buy Used: Use sites like AbeBooks, eBay, or Facebook Marketplace to find students who finished the course last semester and want to sell their books cheaply.
- Rent Your Books: Services like Chegg allow you to rent textbooks for a semester at a fraction of the cost of buying them.
- Shared Subscriptions: If your course requires expensive software (like Adobe Creative Cloud), check if your university provides a free license before buying your own.
7. Maximise Your "Student" Status
Your student ID is essentially a discount card for the world. Never buy anything online without checking for a student discount first. Websites like UNiDAYS and Student Beans offer 10% to 20% off at major retailers like Apple, Nike, and ASOS.
For international travel and local culture, get an ISIC (International Student Identity Card). It is recognised globally and offers discounts on everything from museum entries in Paris to hostels in Tokyo. In many European cities, students under 26 get free entry to national museums. Always keep your ID with you.
8. Supplementing Your Income
If your visa allows it, a part-time job can significantly ease your financial burden. In the UK, students on a Student Visa can typically work up to 20 hours per week during term time. In Australia, the limit is 48 hours per fortnight.
-
On-Campus Opportunities: The best jobs are often on campus. Universities hire students for roles in the library, as campus ambassadors, or even as research assistants. These roles are usually flexible around your exam schedule and pay well above minimum wage.
- Freelancing and Tutoring: If you have a specific skill, platforms like Upwork or Fiverr allow you to freelance. Alternatively, tutoring in your native language or a subject you excel at can pay significantly more per hour than retail work. For instance, a student tutoring math in Sydney can earn AUD 40-50 per hour, compared to AUD 23 per hour in a cafe.
Further Reading:
-
Fully Funded Scholarships For Indian Students
- Best Education Loan Providers in India
- UK Part- time jobs for international students
-
Part-Time Jobs For International Students In USA
Conclusion
Managing finances wisely is essential for international students. Knowing how to save money while studying abroad can help international students manage their expenses and enjoy their experience without financial stress. By budgeting, choosing affordable accommodation, cooking at home, and taking advantage of student discounts, students can significantly cut costs while making the most of their study abroad experience.
If you’re wondering how to save money while studying abroad, these tips will help you navigate expenses effectively and enjoy student life without financial stress!
Frequently Asked Questions:
How much emergency money should I have while studying abroad?
Ideally, you should have enough to cover at least one month of basic living expenses (rent and food) plus the cost of an emergency flight home. Having a "buffer" of £1,000 to £1,500 ($1,300 to $2,000) provides a necessary safety net for unexpected medical bills or sudden changes in housing.
Is it cheaper to live on campus or off campus?
This depends heavily on the city. In high-cost cities like London or New York, off-campus shared housing is usually cheaper. However, in smaller "college towns," university dorms can be more economical because they include utilities, internet, and sometimes meal plans, which simplifies your budgeting.
Can I work on a student visa?
Most countries allow international students to work part-time, but there are strict limits. You must check your specific visa conditions. Working more than the allowed hours is a serious violation and can lead to your visa being revoked and deportation.
What is the most effective way to save on international phone calls?
Don't use your home SIM card for calls. Use data-based apps like WhatsApp, Zoom, or FaceTime over Wi-Fi. For local data, buy a local "Pay As You Go" SIM card or use an eSIM provider like Airalo or Holafly until you can set up a local monthly contract.
