More and more college students from all over the country are choosing to study abroad. Spending a semester or a couple of weeks in a foreign country is both exciting and beneficial to your personal development. A growing number of employers see this as a plus because it can suggest your global perspective and awareness. One might think picking the ideal country to study in is the hardest part, but in the hype of the excitement, many students overlook the costs of financing the trip. Here are a few tips to help you plan accordingly without having to worry about money.
Create a Budget
The first course of action is to determine whether or not studying abroad is feasible months in advance. You’ll need to obtain an estimate of the total costs of your intended countries you may study in (as well as possible excursions you may take while abroad). This includes, but is not limited to, passport or visa applications, tuition, books, housing, meals, bottled water, plane and train tickets, transit (i.e. metro or taxi), and souvenirs. Then, you need to figure out how much you currently have to pay for the trip and how much extra you’ll need to save up. The best solution to this task is creating a budget. Start by listing all your monthly sources of income and deducting all your monthly expenses to establish your discretionary balance (the money you have left over). If you are in the red (negative balance), funding this trip might be a difficult task. Don’t fret, though, as there are alternative funding strategies. If you are in the black (positive balance), then you are more likely able to finance the trip.
The next step is to set up a “Study Abroad Fund” and contribute monthly to build up the balance. This fund will be your go-to source of money when abroad. The amount that you can contribute will depend on how much money you have left over to generate on a monthly basis. Being college students, that amount tends to not be significant. Thankfully, there are alternative sources of funding available to students who plan on study abroad and they come in the form of scholarships. Scholarships are free money and you should try to obtain as many as possible. Check with K-State’s Study Abroad Department for more details at http://www.k-state.edu/studyabroad/current-students/funding/scholarships.html. A new and popular way of raising funds comes in the form of crowdfunding. You can set up a campaign on sites like indiegogo, kickstarter, and gofundme and have access to a community of millions of people that can help raise funds toward your trip. You also are eligible to receive student loans during your time abroad if you are enrolled at least half time, which can help with the costs of tuition, room, and board. For more information, you can visit Student Financial Assistance’s page at http://www.k-state.edu/sfa/policies/studyabroad.html. If you still need more money for your trip, don’t be afraid to speak to your parents and family for assistance.
All these sources of income are better utilized or obtained if you have a thorough budget drafted that illustrates your financial need and capability. You can use PFC’s free spending plan worksheet to help you with this task by going to http://www.k-state.edu/pfc/budgeting.
Does your Debit/Credit card Work in Foreign Countries?
Once you are in the program, have chosen a country to study in, and raised all the funds you’ll need, then you are almost at the finish line of enjoying a financially stress-free trip. What you need to do next is figure out if your debit and/or credit card(s) work in the country you plan on travelling to and if so, if you will incur any fees every time you swipe your card. You can easily check with your bank on this matter and if need be, obtain a card that allows you to do so without any costly fees. Most banks will charge a flat cost for using international ATMs (i.e. $5) and some will charge a percentage of the withdrawal (i.e. 3%). Some credit cards won’t have foreign transaction fees, but this only applies to transactions made using the card. Be aware that many places abroad only accept cash and you won’t be able to use the card with no foreign transaction fees.
Additionally, it’s very important to put a travel notification on each card you may be using abroad, including ones brought for emergencies only. This can be done by calling each bank or company and letting them know the dates of travel as well as the countr(ies) you will be in. Failure to place a notification can result in your card being frozen due to a suspicion of theft. This can last for days and may only be able to be lifted by a phone call to the bank or company.
Do I Have an Emergency Fund?
Lastly, you need to be prepared for any surprises that can financially impact your study abroad experience. You need to have an emergency fund set up that will only be used if something bad happens. Examples include losing your wallet, pick pockets, travel or lodging mix ups, or a medical emergency. It never hurts to be prepared and you’ll have less things to worry about knowing that you have a back-up plan.
If you need further assistance in planning for your trip, feel free to set up an appointment with PFC by going to www.k-state.edu/pfc/services.
Resources
Gerald Mashange
Peer Counselor II
Powercat Financial Counseling
www.k-state.edu/pfc
