How to Manage Your Money While Studying Abroad

Updated on: 07 Sep 2023

The struggle of being a ‘perpetually broke student’ is so much more than a sad cliché. It’s a rite of passage. But no one can deny that a college experience becomes far more memorable when there is some moolah in the pocket. Especially so, when you are an Indian student who has taken an education loan for abroad study. After all, no one wants to drown in debt and repayment plans. So, how do you keep a handle on the money when earning a degree outside of India?

What are the top ways to save money while studying abroad?

When considering another country for higher education, the expenses tend to add up swiftly. The tuition fee is the start. Food, accommodation, travel, books, exchange rates, bit by bit the expenditures stack up high. Therefore, it is vital to handle finances cleverly, smartly, and as early as possible. 

1. Start Planning Even Before Moving Abroad

The first hack to saving funds is to scout for the lowest education loan interest rate. The best way to find out interest rates is to use our state-of-the-art loan eligibility tool and choose loan scheme with collateral if possible. Apart from that you can make a budgetary analysis through EMI Calculator and Estimate future earnings tools which will provide you with a basic idea of the money you will have to shell out each month for the repayment of an education loan to plan accordingly.

Read more about: Indian Government Education Loan Schemes to Help Students Study Abroad

A quick way to find out the rates for different banks is GyanDhan’s partner's page. To get a quote for the lowest interest rates, use GyanDhan’s Loan Eligibility Tool.

These efforts will help you in getting a basic idea of the amount that you will have to shell out each month to repay the education loan, the extra amount to be repaid in interest, expenses while studying, and the amount you’ll pay in EMI after the moratorium period gets over.

Getting a degree abroad also means dealing with currency exchange. With fluctuating rates, it can be hard to pinpoint the optimal time to pay fees. A smart way out is utilizing GyanDhan’s student forex services. The tool aids in wire transfers, Forex Cards, and cash withdrawal at the best possible exchange rate.

Find a Scholarship that fits

Scholarships are rarely given their due. When chosen correctly they can cut your debt, unquestionably. The key is finding a financial aid program that fits; which you can do here.

Read more about: Study Abroad Scholarships for Indian Students

Pick Optimal Forex Solutions.

The international student identity card forex card is a convenient, safe, and economical method of carrying money while studying outside India. The utility of forex cards depends a lot on the respective country’s currency. 

• The optimal forex cards should be picked according to Forex rate, Issuance fees, Atm withdrawal charges, etc. So, a lot of factors come into play while choosing a forex card. GyanDhan comes for the rescue in these convoluted situations, their dedicated student forex services will suggest the optimum International forex card.

2. Once You’re There, Spend Less

Use the first thirty days for experimenting with the conveyance, food, and other services to get a fair idea of how much each cost. After 30 days, create a monthly budget including a buffer for emergencies. 
…and, then slice it

Revaluate and resize the entire allowance of the month by incorporating these tips:

• Cooking on your own is cheaper, healthier and will have you missing the flavors of home a lot less 
• Instead of choosing accommodation away from the college, pick a close-by one. Residing near the school will save you a lot of money on conveyance. (And, cut shorts the travel time which means you can sleep in!)
• Uber's and Lyfts are nice, but they weigh on the pocket, heavily. Switch to public transport as much as possible. Think of the metro or the bus as your best friend. If your flat or room is in the vicinity of the university, try walking or cycling the distance

These tips sound like common sense, but employing them saves a significant amount of funds earmarked for travel and food.

Get a Local Bank Account 

With every use of an ATM or card, an international convenience or exchange fee is charged. A smart choice is to open a bank account in a local branch using the following documents:

• Passport as ID
• Local proof of address 
• Enrolment verification letter

Find Coupons and Discounts

From grocery stores to restaurants, the list of places that offer students either handouts or discounts is ridiculously big. Stick to your student ID card and always be ready to wield it. Besides, keep an eye out for seasonal offs or better plans.

Leverage Money Management Apps.

The upside of being part of Generation Z is that you take to technology like fish to water. Then why not employ money management apps to save a few bucks? Wally and PocketGuard are both excellent choices to streamline spending habits as they let you compare expenditure with incoming money. Both are free and work on iOS as well as Android.

3. Look for Ways of Extra Income

Pinching pennies from living expenses can manage money to a certain limit. The idea is to take a step further and look for ways to augment your finances. Skilled at something or have a hidden talent? Then why not use it to earn a bit of pocket money. Indian students prefer taking part-time jobs like teaching/research assistantships for extra income. Just mind your visa regulations.

Read Also - How to Score an Assistantship/Part Time Job?

4. Take a Long-Term Approach

The best bank for education loan will give you a repayment window of five to seven years, but a better way out is to start early. Try prepaying the interest amount while you’re pursuing education. One way to accomplish it is by saving a portion of part-time earnings. Eventually, they form a lump sum that can be used to prepay the loan. Moreover, the interest charged at this point is simple interest; thus, in the long run, the final repayment amount becomes lower.

Don’t Let the Stress Get to You

The opportunity to study in another country should be a euphoric experience, but financial strain turns it stressful. On top of it, thinking in a new currency makes budgeting hard. By the time you realise those $1.95 coffee cups are too much, the monthly allowance is blown. So, use the tips and strategies revealed above to manage your money the practical way!

• Education loan 
• Study abroad 

First published date: 13 May 2019