Studying abroad is exciting. You get to explore new cultures, receive a quality education, and meet new people. But managing your finances as an international student can be tough. Paying rent and bills in a different currency is often stressful. With limited work options, changing exchange rates, and unfamiliar money, you might find yourself struggling to budget.

To navigate these complexities, it’s important to take proactive steps that simplify your financial life. As an international student, you need careful planning and smart strategies. The key steps involve setting up local banking, using cost-effective money transfer services, creating and sticking to a budget, and understanding your tax obligations. This article explores managing rent and bills in foreign currency while on a student visa.

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

Challenges international students face when managing rent and bills in foreign currency

Navigating international payments can be cumbersome when you are not familiar with your new country’s financial system. Here are some of the common challenges international students may encounter:

• Exchange rate fluctuations: This is especially worse when your home currency is weaker. Budgeting is tougher because you can create financial plans based on a set exchange rate, but it can fluctuate, meaning you may have to spend more than you originally planned.
• Bank transfer fees: Traditional banks charge high fees and mark up exchange rates. It is even worse with recurring payments, such as rent.
• Proof of funds requirements:  Many landlords require several months’ rent in advance, which can be difficult if your funds are still tied up in your home account
• Budgeting difficulties: It is challenging to budget when you don’t know the cost of your bills. You have to learn everything from scratch – how much the light, water, and phone bills would cost, and how much a month’s groceries are worth. Balancing tuition, daily living, and emergencies in a fluctuating currency environment requires careful financial planning.

Also read: Affordable UK universities with the lowest tuition fees for international students

Managing rent and bills in foreign currency while living abroad on a student visa

Let’s start by listing out what you are likely to spend money on as an international student.

• Rent
• Utility bills - light, water, gas, heating
• Internet and phone bills
• Transportation
• Feeding and groceries
• Miscellaneous fees, including waste disposal, academic resources, local council taxes in some cases.

Recognising these expenses is the first step. Understanding your realities as an international student will help you manage your finances more efficiently. Here are some tips we have for you:

1. Choose an ideal accommodation

It is great to imagine yourself living in a luxurious villa in the heart of town. It is realistic to consider whether you can maintain the rent till you are done with your studies. Housing is often the largest expense for students and can take 30-50% of your budget, but there are ways to manage costs.

• Shared housing: Sharing a flat or house with others is one of the most effective ways to lower your rent and utility bills.
• Homestays: Living with a local family can be a more affordable and culturally immersive option, with meals and utilities often included in the monthly fee.
• Co-living spaces: These designed living spaces offer private bedrooms with shared common areas and often include amenities such as a communal kitchen, laundry facilities, and a gym. While sometimes more costly than traditional shared housing, they can simplify living with an all-inclusive price.
• University dormitories: On-campus housing can be convenient and often includes all-inclusive packages that cover utilities and sometimes meal plans. While it isn’t always the most affordable option, it offers predictable monthly costs and eliminates commuting expenses.

Also read: Top mistakes international students make with money transfers

2. Find a reliable banking solution

Opening a bank account in your new country is one of the most crucial steps in managing your finances without hassle. A local account makes paying rent and utility bills seamless, and you can start building your credit history. Opening a student account in many local banks offers benefits like low or no monthly fees, no minimum balance requirements, and special perks. You also get a local debit card to avoid high international transaction fees and unfavourable exchange rates that often come with using your home country’s cards.

3. Open a multi-currency account

Digital platforms like Grey, Wise, and Revolut offer multi-currency accounts, allowing you to hold, receive, and spend in different currencies with better exchange rates and lower fees. Your family or sponsors can send money directly in major currencies, which you can convert at favourable rates to pay your rent or bills.

4. Create a realistic budget

Drawing up a practical financial plan is fundamental to managing your rent and bills abroad. Track all expenses by listing all potential expenses, separating them into fixed costs (such as rent, insurance, and visa fees) and variable costs (including groceries, transportation, and entertainment). Apps like Mint or YNAB (You Need a Budget) can help you track your expenses.

5. Plan for exchange rate fluctuations

Fluctuating exchange rates can be a weapon formed against you. Always account for possible fluctuations in your home currency. For example, set aside an extra 5–10% buffer each month to cover unexpected value changes. Monitor real-time exchange rates on Grey and XE, and time your conversions when your home currency is strong. Avoid airport kiosks, hotels, and other unfavourable exchange services.

Also read: How to open a USD or GBP account as an international student in the UK

Grey: Efficient payment solution for international students

Beneath the excitement of moving abroad to pursue higher education is the challenge of financial management. You can focus more on your studies when you have a reliable financial partner to navigate managing your rent and bills in foreign currency. Grey takes the bulk of the burden off you by offering multiple currency accounts, low transaction fees, and competitive exchange rates.

Get started with Grey today for international payments.

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