10 Effective Budgeting Tips for Indian Students Going Abroad
For study abroad aspirants, planning and managing available financial resources to meet educational needs is important. Even if you have sufficient funds for your overseas education, a lack of proper knowledge and understanding of fund management could hinder achieving a positive return on investment.
In this blog, we have comprehensively analyzed Budgeting Tips for Indian Students to help them make financially informed decisions.
Major Expenses while Pursuing Education Abroad
Pursuing education abroad necessitates that students utilise their financial resources to access useful resources and services for adapting to life in a new country. These requirements can be classified into essential and non-essential expenditures, as outlined below.
- Study Cost (college/university’s tuition fee, academic supplies, etc.)
- Living Expenses
- Accommodation Rent
- Transportation Cost
- Food & Groceries
- Daily utilities such as internet, electricity, and other bills
- Insurance Premium
- Health & Wellness
- Miscellaneous expenses such as clothing, household supplies, gadgets, lifestyle services, etc.
Average Cost of Study for Indian Students Abroad
Let us now understand the average cost of study for Indian students abroad. Depending on the country, university, and courses and their duration, the actual expenses might vary. This cost includes the college/university tuition fees and academic supplies like books and other stationary items.
| Country | Average Tuition Fees(Per Year) |
|---|---|
| USA | USD 30,000-70,000 (INR 25 Lakh-59 Lakh) |
| UK | GBP 10,000-30,000 (INR 11 Lakh-32 Lakh) |
| Canada | CAD 20,000-50,000 (INR 6 Lakh-29 Lakh) |
| France | EUR 5,000-30,000 (INR 4 Lakh-27 Lakh) |
| Germany | EUR 10,000-30,000 (INR 9 Lakh-26 Lakh) |
| Rest of Europe | EUR 15,000-25,000 (INR 13 Lakh-22 Lakh) |
| Australia | AUD 23,000-50,000 (INR 12 Lakh-27 Lakh) |
Average Cost of Living for International Students
The cost of living for international students includes some basic and essential survival expenses, such as accommodation rent, transportation costs, food and grocery costs, and utility services (internet, mobile, electricity, gas bills, etc.). It also depends on the country and duration of stay.
| Expenses Per Year | USA | UK | Canada | France | Germany | Australia |
|---|---|---|---|---|---|---|
| Accommodation | USD 12,000-18,000 | GBP 7,200-12,000 | CAD 8,000-24,000 | EUR 4,800-14,400 | EUR 3,600-12,000 | AUD 6,000-24,000 |
| Food | USD 5,700-6,000 | GBP 2,400-6,000 | CAD 3,000-6,000 | EUR 2,400-3,600 | EUR 1,200-3,600 | AUD 2,400-12,000 |
| Transport | USD 1,800-2,400 | GBP 600-1,800 | CAD 1,000-1,900 | EUR 250-350 | EUR 840-1,200 | AUD 360-2,160 |
| Leisure | USD 900-1,440 | GBP 840-1,800 | CAD 1,200-1,800 | EUR 840-1,800 | EUR 600-1,000 | AUD 2,040-3,600 |
| Daily Utilities | USD 1,260-1,800 | GBP 2,8 80-4,800 | CAD 2,400-3,600 | EUR 1,000-1,200 | EUR 1,800-3,600 | AUD 1,200-2,400 |
| Insurance Premium | USD 360-1,000 | GBP 776 | CAD 600-1000 | EUR 240 | EUR 960-1,920 | AUD 400-600 |
| Health & Wellness | USD 120-300 | GBP 100-120 | CAD 480-1,200 | EUR 50-100 | EUR 360-600 | AUD 150-200 |
| Miscellaneous | USD 10,000-12,000 | GBP 200-300 | CAD 300-700 | EUR 500-800 | EUR 150-300 | AUD 500-800 |
| Total | USD 32,000-42,000 | GBP 14,996-26,820 | CAD 17,480-40,200 | EUR 10,080-22,250 | EUR 9,510-24,220 | AUD 13,050-44,160 |
Budgeting Tips for Indian Students Going Abroad
Below, we have explained the budgeting tips for international students, including Indians, through various examples and rules that will help them manage their finances while studying abroad.
Set Purpose of Budgeting: The first step towards making a plan for saving money while studying abroad is to understand the purpose of budgeting. Students must decide their short-term and long-term financial goals, such as future investments, emergencies, or travelling.
Estimate the Available Funds: There may be various sources of arranging funds for overseas education, such as loans, scholarships, personal savings, etc. Estimating the available funds will help students in allocating the expenses to different components of requirements.
Estimate the Required Funds: The next step before creating a budget is to assess the total funds needed for studying abroad. Below, we provide a general overview of the anticipated expenses in various countries.
| Country | Total Funds Required (Per Year) |
|---|---|
| USA | USD 62,000-112,000 (INR 52 Lakh-95 Lakh) |
| UK | GBP 24,996-56,820 (INR 27 Lakh-61 Lakh) |
| Canada | CAD 37,480-90,200 (INR 22 Lakh-53 Lakh) |
| France | EUR 15,080-52,250 (INR 13 Lakh-46 Lakh) |
| Germany | EUR 19,510-54,220 (INR 17 Lakh-48 Lakh) |
| Australia | AUD 36,050-94,160 (INR 11 Lakh-84 Lakh) |
Understand the Currency Conversion Rates: Students should monitor the currency conversion rate before every exchange to stay informed about fluctuations. This practice will help maximise their spending power.
Differentiate between Needs and Wants: Students can also categorise their monthly expenses into needs (essential goods or services) and wants (non-essential goods or services). It is recommended that 70% of the funds be allocated to needs and 10% to wants. The remaining 10-20% of the funds can be saved for future investments or emergency situations.
Prioritising Primary Expenses First: Prioritising tuition fees, living expenses, and insurance premiums is essential before allocating available funds to other expenditures. Failing to do so may lead to financial strain.
Look for Affordable Housing Options: To manage their finances effectively, students must try to accommodate on-campus or shared apartments/houses, as they cost 30-60% less than private accommodation.
Spend Less, Save More: Students can save money by preparing their meals at home instead of dining out every day. They can also take advantage of public transportation services rather than relying on expensive taxis. Additionally, avoiding spending on unnecessary items that aren’t needed immediately can further help in managing their budget effectively.
Use Monthly Budget Tracker: With the help of certain budget tracking apps such as GoodBudget, Wally, PocketGuard, Mint, etc., students can create and manage their budget every month by setting their specific spending goals.
Reviewing and Adjustment: At the end of every month, students can review their available funds and manage them accordingly by adjusting their previous spending habits and setting new goals. Being flexible toward budgeting is also important to avoid unnecessary mental stress.
Why is Budgeting Important?
Studying abroad can bring many benefits to Indian students, such as personal and professional growth, exposure to multicultural environments, and making new friends around the world. However, it requires having sufficient funds to survive in a foreign country and get the best possible life experiences. We have listed major reasons highlighting the importance of funding for an international student.
Financial Stability: Budgeting helps students set a clear boundary between different kinds of expenses abroad. Budgeting allows them to remain aware of how much money they should spend on a particular activity or requirement.
Emergency Preparedness: An effective budget also helps students to save a portion of their savings for certain types of emergencies, such as health conditions, natural disasters, community emergencies, etc.
Building Financial Literacy: Budgeting also serves as a valuable resource for students to develop financial literacy, enabling them to spend money wisely and save effectively.
Key Takeaways from AdmitX
Budgeting is a crucial step for international students to manage their finances effectively. In addition to implementing the above strategies, students should seek high-paying part-time jobs or paid internship opportunities abroad to enhance their monthly income. In many countries, students can work up to 20 hours a week, allowing them to earn a decent remuneration while balancing their studies.
AdmitX is dedicated to assisting students pursuing their education abroad, offering expert guidance on funding and budgeting to ensure they are well-prepared for their journey.
FAQs
How can I budget as an international student?
As an international student, you should compare the overall expenses required to study abroad and available funds. Based on this, differentiate between different components of expenses and prioritise the primary expenses first. Setting a saving goal every month will also help you stay on the right track.
How can I manage finances as an international student?
As an international student, use your available funds on the 50-30-20 rule. Allocate 50% of your fund to essential expenses (tuition fee and living expenses), 30% to non-essential expenses (entertainment, leisure, and lifestyle), and 20% to emergency or future investment options.
What is the hardest part of managing your finances as a student?
The hardest part of managing your finances comes from a lack of savings, financial debts, unclear motives for budgeting, and prioritising wants over requirements.
What is the average budget for studying abroad?
The average budget for studying abroad depends on the country, courses, universities, and lifestyle adopted by the student. However, a student aspiring to study abroad should make a budget of around INR 20 Lakh-70 Lakh for a year.
How much do international students earn through part-time jobs?
On average, an international student earns INR 50,000-80,000 per month through a part-time job, depending on the country, type of job, and employer.
