Study abroad programs offer an exciting opportunity for Maryland college students, immersing them in unique cultural experiences and educational growth. European countries are the top destinations, with 73% of US students choosing to study on the continent in the 2021-2022 academic year. Italy, the UK, and Spain are particularly popular, offering rich histories, diverse cultures, and world-class educational institutions.
However, thorough financial planning and consistent savings are key to ensuring a smooth and enjoyable experience abroad. This blog post will provide a useful guide to help you effectively plan and save for your study abroad adventure, setting you up for a successful and unforgettable experience.
Set a Budget and Save Early
Step 1: Break Down Your Study Abroad Costs
Begin by estimating all the potential expenses you’ll encounter. These include tuition, accommodation, travel, living expenses, insurance, and unexpected costs.
- Tuition: Check with your study abroad program or host institution for tuition fees. Some programs may have different rates for international students.
- Accommodation: Research the cost of housing in your destination city. Prices can vary significantly between cities and countries. For example, housing (and overall cost of living) in London or Rome can be more expensive than in smaller cities.
- Travel: Include round-trip airfare, local transportation, and any additional travel you plan to do within the country or region.
- Living Expenses: Consider daily expenses such as food, entertainment, and personal items. Websites like Numbeo can provide insights into the cost of living in different cities.
- Insurance: Ensure you have comprehensive health insurance that covers international travel, as well as travel insurance for emergencies.
- Unexpected Costs: Set aside funds for unforeseen expenses like medical emergencies, travel disruptions, or other unexpected events.
Step 2: Craft Your Personalized Budget Plan
With a comprehensive list of estimated costs, create a budget plan. Here’s a sample breakdown for a semester in a popular destination like Italy:
- Tuition: $10,000
- Accommodation: $4,000
- Travel: $1,500 (including airfare and local transport)
- Living Expenses: $3,000 (approx. $750 per month)
- Insurance: $500
- Unexpected Costs: $1,000
- Total Estimated Costs: $20,000
Use SECU’s budgeting tools to create and maintain your budget. These tools make it easier to track expenses and adjust as needed, ensuring you stay on top of your finances throughout your time abroad.
Step 3: Start Saving Today for Tomorrow’s Adventure
As soon as you decide to study abroad, open a dedicated savings account. This will help you keep your study abroad funds separate from your regular spending money. Set up automatic transfers from your primary account to your savings account to ensure consistent savings. Starting early allows you to spread out the financial burden over time and take advantage of interest earned on your savings.
For example, if you need to save $18,000 for a semester abroad in Italy, and you have 18 months until your departure, aim to save $1,000 per month. Breaking down your savings goal into manageable monthly targets makes it more achievable and less daunting.
Navigate Foreign Exchange Like a Pro
Get to Know Exchange Rates
Understanding the foreign exchange rate for your destination is crucial to managing your finances effectively while studying abroad. Exchange rates can fluctuate, impacting the value of your money. Start by familiarizing yourself with the current exchange rate between the US dollar and the currency of your host country. Websites and apps like XE or OANDA can provide real-time exchange rate information.
Be aware of associated fees when exchanging currency. Banks and currency exchange services often charge a fee or commission for their services. To minimize these costs, consider exchanging a small amount of money before you leave the US for immediate expenses upon arrival, and use ATMs or bank services in your host country for better rates.
SECU Visa® Credit Cards: Your Travel Companion
Using SECU Visa® Credit Cards abroad can be a cost-effective and convenient option. SECU cards offer several benefits that make them ideal for international use:
- No Annual Fee: Save on annual maintenance costs, which can add up, especially if you’re on a tight budget.
- No Cash Advance Fee: Access cash when you need it without worrying about additional fees, which can be particularly helpful in countries where cash is preferred.
- No Foreign Transaction Fee: Avoid extra charges on purchases made abroad, allowing you to stretch your budget further.
Additionally, Visa credit cards are widely accepted internationally, providing you with a reliable payment method wherever you go. Using a credit card can also help you track your spending, making it easier to stay within your budget.
Before you leave, notify SECU of your travel plans to ensure your card is not flagged for unusual activity. This precaution can prevent any disruptions in your access to funds while abroad.
Get Ready for Your Adventure with Help from SECU
Thorough financial planning is essential for a successful and enjoyable study abroad experience. From setting a budget and saving early to understanding foreign exchange and leveraging funding options, each step plays a crucial role in preparing you for this life-changing journey. Using tools and resources like the SECU Total™ Checking & Rewards account can simplify the process, providing effective financial management and valuable rewards.
SECU’s financial advisors are ready to assist you with personalized financial advice, helping you navigate the complexities of funding your study abroad program. Their expertise can guide you in identifying and applying for scholarships, grants, and financial aid programs, ensuring you maximize the available resources.
Take the First Step Toward Your Study Abroad Adventure
- Contact Us: Reach out to SECU financial advisors for personalized advice and support tailored to your study abroad plans.
- Open an Account: Explore the benefits of the SECU Total™ Checking & Rewards account and open yours today to start managing your finances effectively.