How to Save Money as a Student while Studying Abroad

Studying abroad can drain your bank accounts. To save money as a student while pursuing your education overseas, you have to consider your education cost, living cost, lifestyle, accommodation, etc. 

If you have started planning for your education abroad and are now wondering how to save big, this article is for you. Read below to get saving tips and make your life as a student more comfortable and stress-free. 

Hacks to save money while studying abroad

Here are 10 actionable tips you will need to save money as a student while studying abroad:

Use student discounts to reduce expenses

Did you know you can use your student ID to get discounts on food, transportation, retail, etc.? A student railcard in the UK can get you a discount of up to 30% on public transit. Similarly, platforms like Spotify, Apple Music, etc., offer up to 50% discounts on student IDs. 

You can also use platforms like UNiDays and ISIC (International Student Identity Card) to get great deals on travel, clothes, accommodation, etc. Make sure to always carry your student ID while studying abroad. Many local shops or restaurants also offer discounts to students. 

Pro tip: You should also carry your student ID to the local shops or restaurants in case they offer discounts. 

Find affordable housing options

While living abroad, you may need to budget 35-40% of your monthly expenses for accommodation. Depending on your location and preference, renting an apartment could be expensive. If you’re renting alone, a one-bedroom flat in London can cost you around £1,595 per month. However, sharing the flat with someone could reduce the cost by half. 

Another option is to choose university housing or dorms. Schools offer accommodation to students at a subsidized rate. You can select the type of rooms based on your budget–single, double, etc. 

Pro tip: GradRight helps international students with essential services like finding affordable accommodation near their schools.

Avoid dining out

Try preparing your meals at home instead of regularly going out to eat. A meal in New York City can cost you around $25, whereas the same amount can get you groceries for 4-7 days. In Europe, cooking at home as a student can save you almost €200-300 monthly.

You can also opt for meal plans offered by your university. Many universities in the USA either charge you per meal or offer plans quarterly or yearly. This way, you would be set for the entire duration of your meal plan.

Take advantage of subsidized or free university services

Universities often offer discounted or free services like healthcare, gym memberships, or even legal aid. Some universities in the USA help international students save up to $3,000 every year by providing health insurance as a part of their tuition fees. Your tuition may include many on-campus facilities. Explore them properly to make the most of them. 

Work on a part-time basis

Many countries allow foreign students to work part-time during their programs. In the USA, through an F1 Visa, students can work part-time for up to 20 hours a week on campus. Their wages range from $10-$15 per hour. Similarly, in Australia, students are allowed to work for 40 hours every two weeks. 

Their wages range from AU$19 to AU$25 per hour. You must check your visa regulations and rules for working in a foreign country as a student. If your visa allows, you can also work part-time at local businesses. 

Purchase second-hand books and school supplies

Textbooks in other countries can be very expensive. In the USA, a college student spends an average of $628 to $1,200 annually on textbooks and college supplies. At the current rate of education inflation, the cost of textbooks in the country increases every year by 6%. 

So, if you want to save money as a student while studying abroad, opt for second-hand books. It can save you up to 70%. You can connect with your seniors to get these books or visit your local bookstores to pay a fraction of the original cost. You can also try platforms like Chegg and Amazon to get great discounts. 

Sometimes, even second-hand books can be expensive. If that happens to you, you can try Kindle and VitalSource to rent soft copies of your textbooks.

Use public transport or cycling

There’s a culture of walking or cycling to work or college in many European countries and American cities. You can try cycling or walking to your school to embrace a new culture and reduce transportation costs. If that doesn’t work, you can also try public transportation. Public transport will cost you much less than owning a vehicle. 

For example, a vehicle in Berlin could cost up to €400 monthly, whereas a monthly pass to public transport would only cost €80. You can also use your student ID to get discounts on bus or metro passes in many countries. Make sure to get information on that. 

Track your monthly expenses

You may incur unexpected expenses even after creating a detailed monthly budget through extensive research. These expenses can exceed your budget. So, cut yourself some slack initially, but use your new knowledge to plan a better budget. Give yourself a monthly allowance and then accommodate the new expenses accordingly. 

Apps like Mint, YNAB (You Need a Budget), and PocketGuard help you track your monthly budget. You can also categorize your expenses to see where you can improve by cutting costs. 

Use the correct bank account to avoid transaction fees

Foreign exchange fees apply to transactions abroad. If you choose the wrong bank account, you may end up paying an extra 3% to 5% on every transaction. This could cost you hundreds in transaction fees. You should go for student-friendly accounts like N26, Revolut, etc. These accounts don’t charge any transaction fees. To avoid hidden costs while making payments abroad, always choose the local currency.

Book your travel in advance

It is well-known that flight tickets are cheaper if you book them well in advance. So, to save on your travels, you must plan. You can also go for budget airlines like Ryanair, EasyJet, and Southwest Airlines to cut costs further. These airlines often offer great ticket deals. You should use sites like Google Flights or Skyscanner to compare flight costs and get the best deals.

Also Read: Study Abroad Guide for Indian Students 2024

What are some typical expenses you need to incur if you study abroad?

An international student’s typical expenses are tuition, accommodation, food, transportation, entertainment, health insurance, utilities, etc. Here is a break-down of these expenses:

Books and college supplies:

• This category of expenses includes your textbooks, stationery, study materials, etc. 
• These expenses are recurring and can add to the monthly costs. 
• In the USA, you may spend about $1,000 annually on books and supplies, CAD 500-1,500 in Canada, and £500-1,000 in the UK.

Tuition fees

Your tuition fees can be your most significant expense while studying abroad. They can vary greatly depending on your program, university, and destination. They can also vary for different levels of education and admission cycles. 

Here’s the average tuition fee you may pay in different countries:

Accommodation:

• After tuition, accommodation is the second-biggest expense that international students incur. 
• The costs can vary significantly based on your lifestyle, accommodation type, and location. 
• Here’s how much accommodation may cost you in different countries:

Food, utilities, transport:

• Your third most considerable expense as an international student will be your living expenses. 
• Your monthly living expenses in the UK can be around £300-£600, $500-$1,200 in the USA, CAD 500-1,000 in Canada, and €600-800 in Germany. 
• These amounts may be different based on the city you’re living in. 

Health insurance:

• Usually, health insurance is mandatory for international students to get a study visa. 
• In the USA, health insurance can cost you about $1,500-$2,500 annually, AUD 600-800 annually in Australia, and £624 in the UK. 

Also Read: 5 Most Affordable Universities in the USA for Indian Students

How to plan your monthly budget as a student?

If you are confused about planning your monthly budget as an international student, here are 7 tips that will help you:

• Begin by creating different categories with your expenses and then allocate a monthly budget. For example, if you’re living in the USA, you can allocate up to $1,000 for rent, $500-$1,200 for food, utilities, transportation, etc. 
• Prioritize recurring and essential expenses like tuition, rent, groceries, health insurance, etc. 
• If you are working part-time, keep track of your income. Find out how much money you have from your job earnings, scholarships, financial aid, and parents. 
• Permanently save some money for your emergency funds. You never know when you might incur an unexpected expense, such as course materials or medical bills. You must always be prepared. 
• You can try using budgeting apps like Goodbudget, YNAB (You Need a Budget), PocketGuard, and Mint. 
• Set a spending limit for every category you have created in your monthly budget, and make sure to stick to the limits. 
• You must review your budget on a monthly basis to see if you are stuck on it. If you exceed the limit in one category, try to compensate for the overspending by adjusting your next month’s budget accordingly. 

How to save money on accommodation while studying abroad?

Accommodation is the second-highest expense you may incur as an international student. Here’s how you can save on accommodation:

• Foreign universities offer students on-campus or off-campus housing options at lower rates than independent renting options. For instance, if you go for private rentals around the University of Toronto, the accommodation may cost you CAD 1,000-1,500 per month. However, if you choose on-campus housing options, you will have to pay CAD 7,000-15,000 per year, based on your chosen plan. 
• As a student, sharing an apartment is always a great option to cut costs. In London, a rented flat can cost you £600-£1,000 per month if you share it with someone. A private apartment, on the other hand, will cost you over £1,500 for the same duration. 
• You can also live at homestays or with local families, as they help bring down not only your accommodation costs but also your food and utility costs. In Australia, a homestay will cost you around AUD 250 – 300 per week.
• If possible, you can choose to live in smaller towns as they are often much cheaper than metro cities. For example, in the USA, the cost of living in Ithaca, New York is 51% cheaper than in New York City.
• You can also negotiate rent with your landlord. You may save up to 5% on rent if you sign a longer lease. 

So it’s clear that there are many ways to manage the expenses of studying abroad. More than that, you can start saving even before you travel to your destination. You can save lakhs just by securing a cheaper education loan, save thousands on flight tickets, lakhs on medical insurance per year, and so on. However, the journey of finding the right university and the right loan is complex, and many students end up choosing options that are more expensive than necessary. 

This is where GradPack can be a huge help. It’s your chance to save up to ₹23 lakhs on your study abroad journey by changing the way you find the right education loan, forex service, travel, accommodation, and, on top of that, get scholarships.

Also Read: Accommodation In USA For Students

How to save money while you study abroad with GradPack?

From getting education loans at the lowest interest rates to massive deals on forex cards, GradPack is your one-stop solution for the ultimate savings on studying abroad. This all-in-one package covers your study abroad needs while helping you save up to INR 23 lakhs. 

With GradPack, you can get:

• Study-abroad education loans at 9.25% ROI and save up to INR 8 lacs
• Multiple need and merit-based scholarships of up to INR 7 lacs
• Forex services at a lower-than-bank markup 
• Safe and budget-friendly accommodation to save up to INR 20,000*
• Health insurance with massive discounts to save up to INR 80,000*

*T&C apply

So, wait no more. Sign up with GradPack now to save huge amounts while applying for the Spring 2025 admissions. 

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