Time to Plan Your Budget!
One of the most important aspects of being a student is managing your financial affairs. Having a solid budget (and sticking to it!) is an important first step towards having a great life while studying abroad.
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Lesson
Summary: |
Costs and expenditures
The primary half of your budget depends on your costs. To prepare a realistic budget, you will need to account for both administrative and personal expenses. Here is a list to get you started on factors you might consider:
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Dorm/Rent. Of course you'll need a place to live, you can't camp out on the street! Either stay on campus or rent an apartment, this will cost you money. $500 is a reasonable amount, but this varies by location.
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Utilities, phone, internet. These costs may be included in rent, but if not, you'll have to pay them on your own. Depending on lifestyle and location, they can come up between $50-100 a month and even more.
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Food. Eating is important if you want to stay alive while you're studying. Food costs depend on many things, from eating habits to purchase styles. You can find more information about saving food costs here.
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Entertainment and leisure Do you like movies, restaurants, snacks/drinks? At school, you'll find tons of opportunities to have fun, but they may cost some money. If you find yourself going out a lot, don't be surprised if you spend over $200 a month on food and entertainment alone.
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Commuting and local transportation. Getting around to classes can be a hassle sometimes. While some schools have partnerships with local transport providers, in some cases you'll have to purchase a subway or bus pass to get to school every morning and home every night. This can cost you $100 a month.
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Dependents. If you're bringing your family along, you will have to budget for them too (wives and kids need food, don't dare forgetting this!)
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Taxes. Yeah, you'll need to think about those too, especially if you're working while you're studying. This can shrink your earnings by
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Keep in mind that the cost of living varies from city to city
throughout the host country, and that large urban areas tend
to be more expensive (in terms of housing, food, clothing,
and entertainment) than rural areas. Check with individual schools for information on the range of projected costs involved with your program for more area-specific numbers. |
Finding Funding and Resources
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The other highly important area of your budget is funding-
where is the money coming from to finance your expenses? In
most cases, you'll need to have a good portion of your
budgeted money on hand before you're allowed to go study
abroad- many student visas require proof of funding on your
application. That said, there are lots of good ways to find more money when you start your program, and that's a good thing. |
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Loans. Lots of governments provide loans to students going abroad at a low interest rate- you should consult your government's education website. If the government isn't an option, talk to your local bank or a private credit company, they may be able to help as long as you can prove that you've been accepted to a legitimate program and have the ability to pay them back in the future using the great job you're sure to get after your studies.
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Scholarships and bursaries. School, companies, and other institutes provide financial aid to top scholars and to those who don't have the resources. You should consult our scholarship community for more information.
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Co-op. Special co-op and internship programs will allow you to work and earn money every other term, and that's a great source of both money and experience. There's a lot more information on co-op in this lesson.
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Part-time jobs. An obvious solution- work on evenings, weekends, and whenever you don't have class, and earn the money to pay for your courses. In some countries there are limits on how many hours you can work on- and off-campus, so make sure you go by the laws and your visa conditions. Find more info here.
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Assisting profs. A special form of work will have you supporting the academic staff of your institution. You can become a teaching assistant, an assignment markerm or part of a research team. Aside of potential revenue, this will maximize your interactions with profs, which will help you get future references and broaden your network of good contacts. Plus, it's great experience.
Sticking to it!
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The final, and most important, part of having a good budget,
is sticking to it. If you've estimated you'll spend $200 a month on entertainment, make sure you monitor your spending and don't go over that amount. If you expect to get a job to finance your costs, make an effort to find a good-paying position somewhere. |
Many good budgets fail because people don't pay attention to what they spend and earn. The rule of thumb is- if you spend more money than you have, you're in trouble. It's good advice to always have some extra money saved aside each month, in case unexpected expenditures come along. Make sure to save and add up all your receipts, for tax purposes as well as for your own money-managing. Money is important, but if you go about it smartly, you should be able to manage the financial aspects of studying abroad easily.
More Resources: Estimating You Budget. Create a UK Student Budget.
Good luck with your student budget!
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