Budget management for new semester: A guide for international students
One of the most important (and overwhelming) parts of starting a new semester in the United States or Canada is coming up with a smart study abroad budgeting plan. Creating a solid budget in advance can ensure a smoother transition for international students, allowing for a more enjoyable study abroad experience.
How much should I budget for study abroad?
Study abroad costs for international students vary significantly depending on the university and city you’ll be studying and living in. Therefore, student budgeting should account for all potential expenses, including:
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- Tuition and fees (varies based on university and field of study)
- Student essentials (e.g., textbooks and laptop)
- Housing (e.g., on-campus versus off-campus options)
- Meals (e.g., university meal plan versus groceries and dining out)
- Transportation (e.g., public transit versus a car or bike)
- Travel (e.g., trips back home and exploring nearby cities)
- Other costs related to personal needs
Use your university’s cost of attendance as a starting point for calculating your study abroad budgeting needs. Keep in mind that colleges tend to underestimate true costs. So, it’s best practice to overestimate your expenses to ensure ample funds are available throughout the year.
How do students afford to study abroad?
According to the Institute of International Education’s 2024 Open Doors Report, over 54% of international students primarily rely on personal and family funds to pay for higher education in the U.S. Fortunately, there are many ways to help ease the burden, including applying for international scholarships and finding a research or teaching assistantship with your university. As an F-1 student, you can supplement your income with a part-time on-campus job or look into international internship opportunities that meet work visa requirements.
An international student loan can also help fund your study abroad education. MPOWER Financing offers funding for up to 100% of education expenses, including living expenses, for eligible schools in North America.
Study abroad budgeting tips for new international students
Here are some practical budgeting tips for students new to the U.S. or Canada.
- Make smart housing choices. Compare on-campus and off-campus housing options. On-campus housing often comes with the benefit of included utilities. Plus, it’ll be cheaper to get to class. But you might find lower rent off campus. Just be sure to factor in expenses like electricity, internet and commuting costs.
- Use public transportation or buy a bike. If you’re studying in a major U.S. city, like New York City or Vancouver, you likely have access to reliable and affordable transit systems. However, if public transit isn’t readily available, investing in a bike (and lock) can be a budget-friendly option for short commutes.
- Track food spending. Dining out is almost a way of life in North America. Your food budget can quickly spiral out of control between tipping customs and the sheer availability of fast food items. To save money, cook meals at home or use the university meal plan if you’re already paying for it. Be sure to check out local international grocery stores, which often offer pantry staples at a lower price.
- Take advantage of free activities. Most universities host free events, from movie nights to cultural festivals. Join a club or check your school’s events calendar regularly to stay in the loop. You can also search for free entry for students to museums and other entertainment venues in your local area.
- Use university resources. Most schools offer free or discounted services for students, such as access to gyms, pools, medical services, mental health counseling and professional workshops. So, always look within your university before assuming you’ll need to pay for services elsewhere.
Budgeting tips for students returning to school in the U.S. or Canada
As a returning international student, you’ve likely settled in and can now reflect on previous semesters. Use this information to identify where you overspent or underestimated costs to refine your study abroad budgeting plan. Additionally, you’ll want to think about:
- Planning for visitors. Friends and family might want to visit to explore your new home. Be prepared for higher spending during their stay, such as dining out and sightseeing costs. Look for opportunities to save money by choosing low-cost activities, like hiking or visiting public museums.
- Creating a safety net. You probably planned for essentials when you first arrived. But life is unpredictable, so setting aside funds for emergencies is necessary. Whether replacing a stolen laptop, dealing with unexpected medical expenses or simply overspending on your study abroad adventure, having an intentional financial buffer can reduce stress overall.
- Using student discounts. This is one of the most overlooked budgeting tips for students. Your student ID can unlock discounts with many retailers, transit systems and entertainment venues. So, always carry your student ID and ask if a student discount is available before paying for anything.
The importance of budgeting for college students
A little time and effort spent study-abroad-budgeting now could save you big time throughout your international education. By planning for key expenses and seeking out funding opportunities – such as international scholarships and study abroad student loans – you can focus on enjoying your time abroad. And remember, your budget is meant to be a tool, not a source of stress. It will take time to adjust and figure out what you do and don’t need when starting a new semester in the U.S. or Canada.
