Making Smart Financial Decisions while Studying Abroad: Managing your finances is one of the primary things which you need to consider while staying abroad for studies. Making smart financial decisions is crucial for a smooth and enriching experience. From Forex card to currency exchange to cost of living, you need to understand and manage every single thing to make your finances better. Some of the key factors that impact your finances are the bank account you are opening in a foreign country, your income from a part-time job, using credit cards etc. Let’s understand what factors you need to consider while managing your finances abroad.
Table of contents
Choosing the Right Financial Institution
An international bank account is a good choice after going abroad as it will be easy to manage the expenses with a local account. Selecting a reliable bank or financial institution is very important for proper financial management abroad. Always look for banks that have dedicated schemes for student savings accounts. You can open accounts with HSBC Bank, Morgan Stanley Bank etc. These banks are known for services catering to the needs of Indian students. Explore their Forex Cards and international banking options for convenience and cost-effectiveness.
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Understanding Currency Exchange
Understanding the currency exchange process is very important especially when you are travelling to a foreign country. You may be required to visit currency exchange centres quite often to exchange INR for the local currency. Always do proper research about exchange rates, best exchange centres, commissions etc before exchanging your currency. Also, avoid currency exchange at airports and hotels as they charge comparatively more than other exchanges. For example, if you are in New York and want to exchange your currency, then look for the best currency exchange service providers in New York.
Budgeting Wisely
Making a realistic budget is key to financial success. Calculate all your essential expenses like tuition fees, accommodation, living expenses, and occasional indulgences. Factor in currency variations and create a monthly budget to avoid financial stress. Plan your budget for every month and keep a sufficient amount of money for unprecedented events. Also, keeping track of your budget will help you manage your expenses properly and you will be able to compare your monthly expenses.
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Exploring Part-Time Work Opportunities
Many countries allow international students to work part-time. You can explore on-campus or nearby off-campus job opportunities to supplement your income. However, strike a balance to ensure work commitments don’t compromise your academic performance. Part-time income will reduce the burden on your family as well because you will be able to manage some expenses on your own. However, always keep in mind that you shall never sacrifice your long-term goal for short-term attractions. Once you start doing your job and earning money, always keep in mind that you will leave the job immediately if it is hurting your performance at the university.
Credit Card Considerations
Using an international credit card will help you in many ways. It’s very easy to pay for your expenses with a credit card as you do not have to carry cash. Also, if you are not having enough money in your savings account then you can use your credit card for inevitable expenses. While a credit card can be a valuable financial tool, use it wisely only for necessary expenses as you will be supposed to pay the bill in the next month only. Understand the terms, interest rates, and any associated fees. Also, paying off your credit card bills on time helps build a good credit history.
Health Insurance Matters
It is mandatory for any Indian student travelling abroad for studies to take health insurance. While purchasing the insurance policy, check all the terms and conditions in detail. Healthcare costs can be much higher in foreign countries. You must ensure that you have comprehensive health insurance that covers both medical emergencies and routine healthcare needs. Check the entire coverage category and compare the policy with other companies on all the parameters like claim processing time, partner hospital, cashless services etc. Do your research properly and choose a plan that aligns with your requirements.
FAQs
Both international credit cards and Forex cards are good for managing your expenses abroad. Forex cards will attract low markup fees and it is very easy to reload the card as well. Using a credit card will help you manage your expenses easily and also build your credit score.
You can easily open a bank account in London with Banks that have dedicated schemes for international student bank accounts.
A lot of banks in India offer Forex cards for international students. You can purchase a Forex card from banks like SBI, HDFC, Bank of Baroda etc.
It is better to take a credit card from a bank in your home country. Foreign banks in the US may not approve your credit card application as they require the social security number of the applicant.
You can open a bank account in the USA with Morgan Stanley Bank, Standard Chartered Bank etc.
This was all about Making Smart Financial Decisions while Studying Abroad. Managing expenses while studying abroad shall be done efficiently. Make a budget every month, avoid unnecessary expenses, and use a local bank account. All these will collectively help you to save your money.
To know more about Making Smart Financial Decisions while Studying Abroad, the loan application process, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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