Studying abroad is a lifetime opportunity for personal and academic growth. However, managing tuition, living costs, and payouts in a different country can be daunting. From currency differences to unstable exchange rates and unfamiliar processes, international students face various challenges.

In this article, we explore how international students can manage tuition, living costs, and payouts abroad to help you focus on your studies without financial worries.

Also read: Top mistakes international students make with money transfers

Understanding the international financial landscape

Unless you are on a scholarship or attending a tuition-free programme, tuition is usually the largest expense for international students. Most institutions even have a higher tuition for international students, to be paid at once or in instalments. Living costs may vary depending on the city and country in which you reside. This would include food, groceries, clothing, accommodation, utilities, transportation, and healthcare. Payouts refer to incoming funds, such as scholarships, part-time earnings, or transfers from home, which require efficient handling to avoid fees and delays.

It may take some time to adjust to the financial landscape of your new country. The prices of commodities will be different. You need to get familiar with the fluctuating exchange rates, especially if you receive payouts in a weaker currency. Proper planning and budgeting are inevitable if you don’t want to be stranded in a foreign country with limited resources.

Managing tuition fees as an international student

Here are some strategies to help you pay tuition abroad without hassle.

• Choice of institution: Your choice of institution determines how much you will pay. Many European countries offer tuition-free education for international students or some scholarships. Choose your institution with your finances in mind. Research how much it would cost, and factor in other fees you might incur during your study period.
• Plan early: Start your budgeting before leaving your home country, without leaving any stone unturned.
• Pay in instalments where possible: Some institutions allow students to pay tuition in two or three payments. This eases the immediate financial burden of moving abroad. You can then put the rest of the tuition together once you settle down.
• Avoid expensive transfers: Traditional banks charge high fees and mark up exchange rates when sending tuition abroad. Instead, use specialised payment services or multi-currency accounts that let you pay directly in the university’s currency.
• Monitor exchange rates: If tuition is in GBP, EUR, or USD, converting funds from your local currency when rates are favourable can save money over the course of your degree.

Also read: International student money hacks: Budgeting in multiple currencies

Managing living costs as an international student

Living cost is bound to consume 30-50% of your budget and require proper budgeting to manage efficiently. Here are some tips you may find helpful.

• Accommodation choices: Consider affordable housing options, such as shared living spaces and university dormitories. Where available, homestays are low-cost options that also facilitate cultural integration and help you meet new people.
• Open a local account: A bank account or fintech solution in the host country’s currency helps avoid constant conversion charges. This way, you can easily pay for daily items without incurring hefty conversion and transaction charges every time.
• Track your spending: Budgeting apps can help you monitor your spending on food, transportation, and leisure activities.
• Part-time work: Where your visa allows, student jobs provide extra income in the local currency. This can reduce your reliance on home transfers.
• Emergency buffer: Keep a small fund in the host currency for unplanned expenses such as medical bills or housing deposits.
• Saving up on feeding: Cooking at home saves considerable money compared to eating out. Plan meals, buy groceries in bulk, and look for student discounts at supermarkets.
• Affordable transportation: public transport is often efficient and offers student discounts. Consider student-specific travel passes, such as the Oyster card in London or the 16-25 railcard for trains. Cycling or walking is also a cost-effective option, especially in well-planned cities.
• Look out for student discounts: Leverage your student status with a student ID card, such as Totum or Unidays, to access discounts on retail, entertainment, and software.

Also read: Living abroad on a student visa: managing rent and bills in foreign currency

Managing payouts abroad as an international student

Your priorities when handling payouts are to minimise losses and avoid delays. Many international students lose a lot to transaction fees, hidden charges, and markups on exchange rates. Other times, they experience delays in receiving money, which can be risky in emergency situations.

Open a local bank account upon arrival for direct deposits and lower fees. In the UK, HSBC or Barclays offer student accounts with 0% overdrafts. In the US, options like PNC provide no-fee checking. Canada's RBC or Scotiabank offers an easy setup for international students. For scholarships, ensure direct deposits to your local account to bypass conversion losses.

For payouts from family members and sponsors back home, use cross-border payment services like Grey and Wise for low fees and mid-market rates. Transactions are also significantly faster than bank transfers. You can track exchange rates via Grey to time transfers.

Why international students are choosing Grey

Managing international student finance can be challenging, but it becomes much easier with the right financial tools. Traditional banks often make international student life more expensive with hidden fees and slow transfers.

Grey simplifies this process by offering:

• Multi-currency accounts - manage USD, GBP, and EUR on one platform.
• Low-cost transitions - affordable fees with no hidden charges.
• Competitive exchange rates - mid-market range, no markups.
• Swift transactions - transfers are significantly quicker than those of traditional banks.

With Grey’s virtual USD debit card, you can complete online payments with ease, offering all the financial flexibility you need as an international student.

Get started with Grey today to manage tuition, living costs, and payouts with ease.

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