Money Talk: Smart Budgeting Tips for Study Abroad Students
Budgeting.
Yes, a boring topic—we know.
But, in the wise words of Bluey's mom, "Boring things are still important."
And when you're studying abroad, budgeting is definitely one of them.
Don’t be the person who blows through their savings in the first month and spends the rest of the semester tapping out a credit card or resorting to instant noodles. Instead—no matter how much money you have worked hard to save for your trip—learn how to make it work for you!
Keep these tips in mind rather than constantly stressing over your bank account:
1. KNOW YOUR NUMBERS. Before you even step foot in an airport, make sure you know exactly how much money you have at your disposal, how much that equates to per week, and roughly how much you will set aside for any essential costs like meals, medications, your phone, toiletries, and transportation back to the airport when it’s time to go home.
2. PRIORITIZE ONE BIG SPLURGE. Instead of trying to afford everything, know what is most important to you, that you’re sure will be worth it. Maybe it’s a meaningful weekend trip to visit a city your ancestors came from, an experience someone told you about that inspired you to choose your study abroad destination in the first place, or a piece of art that you absolutely love that will forever remind you of your study abroad home. Prioritize it and set aside the money for it in advance so impulse spending doesn’t mean it’s out of budget when the time comes.
3. TRACK YOUR SPENDING—IN A WAY YOU FIND APPEALING. If you’re an app person, research your options in advance (like Mint or YNAB) and make sure to check in regularly. If you know you’ll start working in an app and then forget about it after a week, use your notes instead. You might use colors to make tracking your spending more fun—green might be for essentials, yellow might be for fun, and red might be for the occasional “oops” spend. Keep an eye on where your money is going so you can make the smartest decisions as time passes and feel inspired to use the red pen as little as possible.
4. HAVE A “GUILT-FREE SPENDING” BUCKET. Every week or month, set yourself an appropriate amount that you CAN spend impulsively and guilt-free. Whether that’s €10 or €300 will depend on your savings, but once that’s gone, it’s gone and promise yourself you’ll be strong and forgo another overpriced matcha until your bucket re-fills.
5. MAKE BUDGETING A GAME. Challenge yourself—and bring your friends into this too—to find the best meal in the city under the local currency equivalent of $5. Hit up the markets and food trucks for some great deals. Whoever scores the cheapest and most delicious meal gets to choose the next challenge—for example, the cheapest way to travel to another city, or the cheapest yet most interesting way to spend a Saturday afternoon.
6. GO FEE-FREE. Check out Revolut, Wise, or Charles Schwab, for example, for a fee-free international transactions deal on debit or credit cards.
7. USE ATMS WISELY. Though it’s unlikely you will be in many situations where you need to use cash, it’s handy to have a small amount with you. Sometimes market vendors or taxis, for example, only accept cash depending on where you are. If you need to take cash from an ATM, take out a larger amount so you avoid so many unnecessary withdrawal fees. Store the cash safely, of course, and remember to never walk around with large amounts of cash.
8. LOOK FOR STUDENT DISCOUNTS. You can save money everywhere from cinemas to museums and galleries to restaurants to grocery stores depending on your destination if you plan ahead. Ask local students if they know of any discounts that are worth taking advantage of while you’re there. Some places, like cafes, might also have a loyalty program where you get a free coffee for every 10 you purchase or similar.
9. DO THE “LOCAL OR TOURIST” PRICE TEST. Especially if you’re in a city popular with tourists, ask yourself—is this something locals buy? Or is it just marketed to tourists? In this case, the price is almost surely too high. If a restaurant is mainly catering to tourists, you’ll almost always find a menu in English. If it’s serving up authentic food to locals, it will more likely be in the local language only. Consider also taking public transportation over taxis, and shopping in farmer’s markets.
10. MAKE LUNCH YOUR MAIN MEAL. In many countries, you’ll find that lunch specials are much cheaper than eating dinner out. Filling up mid-day and have a lighter evening meal can save you money. You might even have leftovers from lunch!
11. COOK WITH FRIENDS. Although it’s tempting to go out for every meal, cooking with friends means you can split groceries and save money. Plus, it’s a great bonding experience. And, you can experiment with local ingredients, challenging yourselves to cook local dishes that you can then cook back home for your family.
12. ACCEPT THAT EVERYONE HAS DIFFERENT BUDGETS. It’s not always easy when you meet new friends who have a budget that is bigger or smaller than yours, but it’s likely you will. If yours is the smaller budget, think carefully before saying yes to joining in on weekend trips to destinations that aren’t your top choices, or eating at restaurants that you know will stretch your budget a bit too far. If you’re the one with the bigger budget, don’t take it personally when friends aren’t able to travel as much as you want; you might embrace the joy and adventure of solo travel instead. And perhaps forgo that high-end restaurant in favor of somewhere a bit more budget-friendly for everyone.
Depending on where you’re traveling, we have a few more quick tips you might find helpful:
JAPAN: SMART SPENDING IN FUKUOKA
Shop at Daiso. The ¥100 store is your friend. You’ll find everything from kitchen supplies to snacks here, spending less than you would elsewhere
Find konboni deals. Late at night, you’ll find that many convenience stores will discount fresh food items. Take advantage of these when you can!
Pre-pay public transport. A rechargeable public transit card will be included in your program, so take advantage of the discounts it offers!
PERU: SAVING SOLS IN LIMA
Negotiate at markets. It’s common for prices to be flexible in markets here, so haggling politely and respectfully might save you some money.
Take collectivos instead of taxis. These collective ride-shares are vans or mini-buses that act like buses and taxis simultaneously. You can flag one down like a taxi. It’s faster than a bus but still has predetermined stops. And it’s cheaper.
Eat at menú restaurants. Look for these local spots that serve set meals (likely soup, a main dish, and a drink) for much less than you would pay in more touristy places.
ITALY: BUDGETING LIKE A LOCAL IN FLORENCE
Always drink your coffee at the bar. Sitting down at a table to enjoy your coffee costs more than it does to stand and sip at the counter like Italians do.
Don’t eat near famous landmarks. Just walk a few blocks away from those iconic touristy places and you’ll find that restaurant prices drop dramatically!
Buy train tickets in advance. If you’re heading out of the city, think ahead; prices for regional trains will go up closer to the day of travel.
MAKE IT A MINDSET: BETTER BUDGETING = MORE FREEDOM
When you understand how to make your money work for you and pay attention to your spending, you’ll be able to say yes to the experiences that really matter to you. Saying no to something that you know you won’t necessarily love means you can choose to do something you know you will later on. Plus, you won’t go home with debt, and future you will thank you.
Boring things are still important—and sometimes it’s even possible to make them a little bit fun too.
