An important part of a budget worksheet is where you can determine how you will pay for the program costs. Whether you’re using financial aid, scholarships, family contributions, or paying for the costs on your own, you need to know exactly how much money you will have available.
Amount Needed
- Use the numbers provided by the program for estimated costs.
- Consider not only the cost of the program, but expenses not included in the program fees, such as personal travel, entertainment, laundry, postage, toiletries, phone, and internet.
- Determine how prices in your host country compare to those at home.
- Separate your “wants” from your “needs”. How much money will you need for food and transportation, and how much money do you want to spend on entertainment and activities?
Resources
- Talk with your family to get a clear picture of what you can afford.
- Consider the exchange rate when determining what your financial resources will be. When you change funds to the local currency, the exchange rate can work in your favor, or against it. Click here to see exchange rates: www.xe.com.
- The cost of living in a region cannot accurately be determined by exchange rates. Cost of living calculators may be useful and are available online.
Calculate a budget
- Use the excel spreadsheet budget to create your budget.(Click here for the Budget Worksheet) Estimate high when calculating any variable expenses, such as public transportation and food. It’s better to have money left over than to fall short before the end of your program.
- Remember that you will likely buy souvenirs before you leave, so plan to spend a little more money than usual during your last weeks abroad.
Manage the budget
- Once you choose a program, it’s important to create a budget and stick to it. Determine a set amount of money that you will need each week for “needs”, such as food and transportation, and then see what you will have left over for “wants”, such as entertainment and travel.
- Keep track of your spending by saving receipts and adding up expenses throughout the semester. Use a simple Excel sheet can be an easy tool to track your spending.
- Review your spending habits every week/month to help you stay on track. Where did you overspend? Where did you save? What can you do differently next week/month
Tips and Resources for Staying on Budget
- Check out the Ultimate Student Guide To Financing Your Life Abroad by Go Overseas.
- Ask your bank if they have partners abroad, and what the ATM and credit card fees will be.
- Use a credit card with a 0% foreign transaction fee.
- Avoid unnecessary ATM fees. It is often a good idea to take out the maximum amount that you can at an ATM, which you can stash and use over a period of time (ATM fees can add up very quickly).
- Stay updated on exchange rates. Exchange rates fluctuate often. Avoid falling victim to bad or unknown rates by getting the XE Currency App on your phone or visit www.xe.com to access current exchange rates.
- Be conscious of your spending to determine if your purchases are “needs” or “wants.”
- Take advantage of student discounts. Keep your student ID card with you and consider buying the International Student Identity Card (ISIC). As a student, you can often get discounts at museums, when buying train tickets, and at hostels. However, research beforehand if the ISIC card is useful in the country you will be going to.
- Shop and eat where the locals do. Avoid purchases in areas that have high tourist traffic.
- Buy your souvenirs and gifts at the end of your program. By that time, you will have a better idea of what the good souvenirs are and will know how much money you still have to spend.
- Maintain a budget while abroad to ensure you are staying within the financial parameters of the budget you created before going abroad. Use weekly budgets to monitor the spending of your “needs” and “wants” to keep you on track.
- Bring a refillable water bottle with you everywhere. In most countries outside the US, water is not free at restaurants and those $1 bottles will add up.
- Cook for yourself (if and when you can). It’s always more economical—and healthier!
- Find free fun. Many international cities offer free walking tours. Facebook and other social media platforms are also great tools for finding ways to explore your host city and country on a budget.Â
