You should know
- The importance of having a budget while studying abroad.
- Budgeting tips.
- How to access currency exchange rates for your host country.
- Ways to access your money while abroad.
Budgeting
While you are enjoying your adventure abroad, it is easy to overspend. Therefore, prior to departure, it is a good idea to develop a budget. Your study abroad adviser prepared a Financial Planning Worksheet, which provides information on billable and non-billable estimated costs for your study abroad program. This form includes educational costs, housing meals and transportation, but you also need to consider individual spending items like optional excursions, souvenirs and going out. Using the Financial Planning Worksheet and researching additional expenses in your host country will help you better prepare for staying within your budget while abroad.
Here are tips for managing your finances while abroad:
- Understand the funds available to you while abroad through financial aid, scholarships and personal contributions.
- Calculate how much money you will spend on incidentals outside of your program each week and plan accordingly.
- While you are abroad, there will be opportunities to travel outside your host city and country; however consider staying and learning more about the local environment. Not only will you cut down on travel expenses, you may find a deeper connection to your host city and culture than you thought possible!
Managing your money abroad
It is important to know the exchange rate for U.S. currency. There are several websites that provide current rates, and this may determine how you choose to budget your money. Exchange rates change regularly, so it is best to check weekly.
It is a good idea to bring some cash with you when you travel. You may need this for incidentals during your in-country travel before you are able to access your money. Research your country to determine common payment methods. It may be easier to pay with credit or debit cards, or you may find that your country has a more cash-based economy. When using international ATMs, money is dispensed in local currency, minus international transaction fees. Be sure to call your bank before you depart to notify them that you will be out of the country. Not doing this could lead to the bank freezing your account and denying you access to funds. You will also want to ask about any international transaction fees.
Credit cards can be invaluable in a financial emergency, and you may wish to take one with you. However, it is easy to overspend and service and credit fees can accumulate. Be sure to record your credit and debit card numbers and the 24/7 international phone numbers for all cards you will be taking abroad with you and keep this information in a secure location. Also, leave a copy with your emergency contact. If your card is lost or stolen, contact your bank or credit card company immediately to have it deactivated.