Tips to Save Money on Foreign Exchange While Studying Abroad

What’s the first thing that you are greeted with, financially, on entering a foreign country? The foreign exchange. As it is known, each country has its own currency and its relation with other currencies of other countries in terms of economy, which meet together on the Venn diagram of the foreign exchange rates. Depending on the same, students struggle with managing their finances; having to keep up with any change in currency rate(s) whatsoever, and coming up with ways to accurately budget their expenses. As a student, getting to save money on this foreign exchange while studying abroad might just be the saving grace that you might need. So without further ado, let’s get started on this blog; it shall prove advantageous to international students as it talks about tips to save money on foreign exchange while studying abroad. 

Brief on Foreign Exchange 

Starting, let’s first understand, in short, what foreign exchange, or foreign currency exchange is. Foreign exchange, that is also sometimes known as forex, is basically the conversion of one currency into another currency, based on economic factors, and the utilitarian value of the respective currencies. It can be better understood when we take the supply and demand of an economic market of a country; that often decides on the value of the currency; and its relation with that of the global economy in the world. 

5 Tips to Save Money on Foreign Exchange While Studying Abroad 

The most prominent tips for saving money on foreign exchange while studying abroad are as mentioned below. 

Avail of Forex Locally Before Travelling Abroad 

One of the first things that students need to keep in mind before travelling abroad for study purposes is that the foreign exchange students will encounter in the foreign country will be higher than going for foreign exchange locally in their home country first. You shall be required to look for and compare varied foreign exchange rates locally, as the currency exchange companies have different vendor rates and can differ by as high as 6%. So, essentially, look for the best option in terms of foreign exchange rates, and exchange money of the foreign currency beforehand. 

Buy Forex Card and Carry It While Studying Abroad 

Students are naturally expected to indulge in day-to-day activities while studying abroad, like looking for groceries, visiting a cafe, etc. Forex cards, while being useful in other circumstances, also help students manage their daily expenses, better than a debit/credit card does. So get a forex card which is pre-updated with money before moving abroad, and avail it at your convenience while you study abroad. 

Forex cards are cheaper and also more economical than rupee cards, making it easy for students to save money on foreign exchange while studying abroad.  This is because they save on additional charges paid as compared to forex cards. 

Traditional Mediums Additional Charges 
Traveller’s Cheque 0.5% to 2.5%
Debit/Credit Cards3.5% to 6.5%
Foreign Currency Note 0.5% to 2.5%

(source: financialexpress.com)

Through the above table, it is evident how forex cards help international students save money while studying abroad. 

Go For A Bank Account in Abroad 

Many students studying abroad go for part-time jobs  to support themselves as they complete their higher education qualifications. Setting up a bank account in the country shall help them to directly receive their paychecks in the local bank abroad without any complications; helping them to save money on any kind of withdrawals. Further, student-friendly bank accounts also solve the problem of ATM fees for students. 

Therefore, choosing to set up a bank account abroad for students is a great tip to save money on foreign exchange. 

Be Updated on Foreign Exchange Rates 

As mentioned before, foreign exchange rates are subject to fluctuations, sometimes in favour of international students, sometimes not. For example, if the exchange rate increases the value of INR, it is helpful for students, and being updated on the same can help them make purchases when currency is in their favour. Being aware of these circumstances and the economical atmosphere of the foreign and home country can help students save a lot of money on foreign exchange while studying abroad. 

Be Wary of Fake Currency 

Another important factor to save money on foreign exchange while studying abroad is being wary of fake currency. Falling into the trap of the same can be the biggest blow to all your savings and can lead to losing a huge amount of money. Make sure as an international student you are aware of frauds and use currencies by verifying and checking their watermarks, wording, etc. Be careful to save money! 

Also Read: How to get an education loan for studying abroad?

FAQs

Q1. What is the cheapest foreign exchange method? 

Ans. Exchanging money through banks and/or credit unions that offer a foreign exchange service is always a great and cheap foreign exchange method! 

Q2. Can students save money studying abroad?

Ans. Yes, students can save money studying abroad. Setting up a local bank account abroad can be a great way to start doing that. 

Q3. Which is the cheapest country to study?

Ans. Germany is one of the most affordable countries to study abroad. 

That were some Tips to Save Money on Foreign Exchange While Studying Abroad! For more insights on your financial needs related to study abroad purposes, avail of Leverage Edu Fly Finance services.

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