Many students’ dream is to study abroad, an experience widely presented in popular culture and social media. Besides fun it also allows you to experience other cultures, learn a language, and gain an international perspective. In today’s economy, managing personal finances has become a top concern, especially for students navigating life abroad. Here is where financial literacy becomes an essential skill. Won’t you agree? Knowing how to handle money well can turn a stressful situation into a more enjoyable experience.
During the first experience of being far away from home and family, expenses can quickly add up. But worry not, students can navigate the costs of living, tuition, and unexpected expenses while maintaining control over their budgets.
The Importance of Financial Literacy and Budgeting for Students
Learning how to budget early on helps students manage their money more easily while studying abroad, cutting down on stress so they can fully enjoy their studies and new experiences. Let’s hear from a Brazilian student who shares their perspective on managing finances while studying abroad: “Aprender a controlar meu orçamento foi um grande desafio. Quando fui estudar no Reino Unido, percebi a enorme diferença no custo de vida e tive que aprender rápido a reduzir custos. Por exemplo, com a carga de trabalho de estudante e um emprego meio período, usei ferramentas online para otimizar tarefas acadêmicas, fazendo uma análise crítica de um artigo com exemplos práticos e um texto de referência, o que me garantiu uma avaliação alta. Na era digital, é essencial ter pensamento crítico e otimizar seu trabalho para aproveitar ao máximo a experiência no exterior.” Carolina highlighted that while studying abroad in the UK, she faced the challenge of managing finances and adapting to a higher cost of living as a student with a part-time job. By using online tools, she streamlined tasks like analyzing articles and completing assignments, saving time and achieving high marks. This experience helped her gain better control over her finances and optimize her workload, allowing her to make the most of her opportunities abroad.
Summing up, financial literacy in this context is about being smart with your money to avoid the stress of running out of funds.
Budgeting Basics for Study Abroad (Examples for Brazil, Portugal, France, and the UK)
Establishing a budget is the groundwork. To do it, you should consider the cost of living, which can vary dramatically depending on your destination. We’ve looked into some popular spots for you to have a general idea. Check what students can expect in the four chosen destinations:
- Brazil: Vibrant, lively and rich in culture Brazil is among study destinations welcoming adventurous students. Here, your monthly budget should be around R$2,000–R$3,000 a month. This should be about right to cover rent, groceries, and getting around. Just a heads-up — cities like São Paulo and Rio de Janeiro can hit your wallet a bit harder, especially for rent.
- Portugal: Based on Mastersportal and Educations’ study guides, for those considering popular Lisbon, expect to spend about €800–€1,200 monthly on living expenses. But this amount suggests that students would live in a dorm or share an apartment.
- France: This country is another popular choice, picturesque and dynamic. Paris can be a bit pricey for students with an average of €1,200–€1,800 required per month. Other cities like Lyon or Bordeaux are a bit more affordable at around €800–€1,200. Student discounts are widely available for transportation and cultural activities. In contrast with high living costs, tuition is more affordable, and various discounts are available for both European and non-European nationals, even though amounts vary.
- UK: London is notorious for its high cost of living. Monthly expenses easily reach £1,500 or more. In other cities like Manchester or Glasgow, students can live on around £1,000 per month. The key is to find affordable accommodation, which can be quite challenging. Taking advantage of all possible student discounts is a way to cut the expenses.
To manage these costs effectively, students should plan their budgets carefully, distinguishing between essential expenses (rent, groceries, insurance) and discretionary spending (eating out, entertainment).
Financial Planning Before You Go
It goes without saying that financial preparation should start long before you embark on your study abroad journey. Here are some essential tips to ensure you’re financially ready:
- Saving: At least a year before your trip you should start saving some money. If possible, set aside a portion of your income each month. If you have extra cash when you arrive you can take your time getting settled and figure out your new routine.
- Scholarships and Grants: Be sure to look into any scholarships or grants for international students applicable to your situation. These can significantly reduce tuition fees and living costs, while not adding up to the workload.
- Part-Time Work: It is possible that even with a scholarship and a bit of savings you will need a part-time job, more so if you are looking at studying abroad for a while. To help fund your studies look into part-time work opportunities, both in your home country and abroad (remote opportunities can be a viable option). However, be sure to check the visa regulations for international students in your chosen country, as oftentimes there are restrictions for those on student visas.
Making Smart Financial Decisions Abroad
So, you did all the right things: saved up, have your scholarship or a part-time job plan set up… Now that you’re abroad, it comes to making wise financial decisions and staying within your budget. It is easier said than done though, especially as you are adjusting to a new country, maybe a different currency. Here are some strategies that can be useful:
- Use Student Discounts: Take advantage of the many student discounts available! From transportation to museums, theaters, and restaurants, showing your student ID can save you a ton. Don’t miss out on these perks!
- Cook at Home: Dining out with friends is awesome, but it can really add up. Try cooking at home instead. Get together with other homesick students for a cooking night for a memorable and special moment!
- Track Your Spending: Make use of modern user-friendly online banking and budgeting apps. Most of them also offer some cashback and special offers. Checking your spending regularly is a healthy habit that helps you spot where you might be overspending and fix that.
Building Skills While Studying & Traveling
Studying abroad isn’t just about attending classes, that one can do at the home country, too. It is a way to develop new skills by living in a different setting and facing a different culture. Here’s how students can gain valuable experience:
- Part-Time Work and Internships: Working part-time not only provides extra cash but also offers practical experience. Companies value adaptability to different work cultures. Additionally, it is a certain way to expand your connections and network. Many countries, including Portugal, France and the UK, allow international students to work a certain number of hours per week, if they comply with visa restrictions.
- Learning to Budget: With a limited budget in a foreign country students are forced to distinguish needs and wants. Avoiding spontaneous purchasing and knowing your limits can be a game-changer.
Students studying abroad need to manage their expenses effectively, adapt to new conditions quickly, while making the most of their international experience. Here is where financial literacy comes handy. Careful planning and being real about available resources make life in a foreign country less stressful. Healthy financial habits make your journey more enjoyable, and set you up for future success.
