Studying abroad is a great experience, but truthfully, it can get pretty pricey. However, it is possible to live abroad without breaking the bank.
Before you go abroad, here are some financial matters to take care of:
- Call your bank and let them know when and where you will be traveling abroad so they don’t think suspicious activity is happening when they see international purchases
- Get or bring a debit or credit card that allows you to make those international purchases without extra fees added. This will save you money! Many credit cards charge a~3% international transaction fee. Apply for a card that doesn’t charge that fee to save. Credit cards that don’t have transaction fees are very handy while abroad. Bonus points if you have a travel rewards credit card. Many of these cards don’t have international transaction fees and when you use them during your time abroad, you build travel rewards points which you can redeem later.
- Get a few bills in the currency of the country you’re going to. It’s a good idea to have some on hand and it’s easier to pay for certain items. Not every place takes credit cards, like trains or buses. Try to estimate your costs in advance so you don’t take out too much or have to pay another fee to get more. You can find ATMs in almost every airport.
- Where you plan to study will determine what kind of money you can use there. If you’re planning to study abroad for one year or less, take your home debit/credit cards with you instead of going through the process of opening a bank account in the country where you’ll be studying. Many banks in your home country may have agreements with banks in other countries and that may mean you pay little or no fees to access that cold, hard cash in foreign ATMs. Be sure to double check this before you go!
It’s also a good idea to set a total spending budget for your entire trip and divide it up by spending categories. Before I went abroad, I asked a friend (who had previously done the same study abroad program) how much money she brought with her. From what I had read, Copenhagen can be quite expensive so I wanted to make sure I was prepared.
What you need is a study abroad budget: something to help you have a great living experience and keep you afloat while you’re there. If you don’t have a clue about where to start, here are some tips to help you create a stellar study abroad budget!
Generally, depending on where you will be, the cost of living will vary. The amount of money you bring with you also depends on how long you’re staying. For my 6-week study abroad program in a relatively expensive country, I would budget anywhere from $500-1000+ in living expenses.
Remember to be aware of the exchange rate in your intended destination before, during, and after your travels. This will help you to keep track of how much you are spending in U.S. dollars.
Some expenses you’ll have to take into account for your budget are:
- Groceries – I’ve always been told that buying groceries can be way less expensive than eating out; however, it was living abroad without my parents (adulting!) that really allowed me to see the truth in this firsthand! I saw how drastically more expensive eating out was. For example, one meal from one of the restaurants that my friends and I went to cost me more than the average amount I spent on groceries for the entire week.
- Eating Out – Let’s be real, it’s almost impossible to go to a new city or country and not try the food! It helps to budget this beforehand so you don’t overspend.
- Transportation – Transportation includes trains, car share services (just a heads up, if you’re going to Denmark, there aren’t Ubers or Lyfts!), taxis, trains, and any other method of getting from one place to another besides walking. One other key consideration is budgeting for travel to other countries. For example, I was in Copenhagen but took a trip with friends to Malmö, Sweden. Several of my friends took trips to other neighboring countries like Germany, Norway, and Italy.
- Shopping & Souvenirs – Have money budgeted for shopping and getting souvenirs to bring back home. You also might need to buy a piece of clothing that you weren’t able to bring along with you before. For example, I had to buy a sweater because there was some unexpected cold weather at night. By the end of the trip, I had money left over in my budget for souvenirs! On my last day in Denmark, me and a friend spent the day going to different shops in the shopping district (It is one of the biggest shopping districts in Europe!) and seeing what we could find at a reasonable price.
- Emergency Expenses – You never know when you might need to buy items or services for injuries or any other emergency situation. Be safe, but prepared!
- Miscellaneous – This category is for any other type of expense that isn’t listed above. Miscellaneous purchases could include gym memberships, bike rental services, etc.
One of the best ways to save money while abroad is to live like a local. Observe how the people around you live, where they eat and where they shop. If you align your lifestyle more with the locals rather than with the tourists, it will help you to save money during your time abroad. Many restaurants and stores that attract tourists have higher prices on their meals and products.
Consider your priorities for your time abroad as they relate to your budget. If you plan to travel extensively, you will likely need to budget more than students who choose to spend weekends exploring their host city. (Past participants often comment that frequent travelers miss out on opportunities to truly become a local and make local friends by spending weekends away, too!) Save your money for the items or activities that are at the top of your to do list,
It can be tempting, but avoid making impulse purchases — especially at the beginning of your trip. You’ll be thankful later on when you have extra spending money at the end of your trip for souvenirs!
I wish you safe travels and a money savvy study abroad experience!
