How to Arrange Money For Expenses While Studying Abroad

Have you been thinking of easy ways to arrange money while studying overseas? Indian students are more eager than ever to study in illustrious institutions like Harvard and Stanford. But when it comes to pursuing education overseas, students have to bear a wide range of expenses. Being an international student, you will have to pay for academic material, college fees, food bills, etc., from time to time.

From qualifying tough exams to adapting to foreign cultures, studying abroad comes with its own set of challenges. Luckily, students also get the opportunity to indulge in fun activities alongside their studies. Since students ought to be focused on academics, lack of funds can become a serious impediment to scholastic progress.

Moreover, there is nothing worse than being stranded abroad without any funds at your disposal. This is why all expense related issues should be sorted at the earliest so that students can stay focused on studies. Here are the top 5 ways students can arrange funds for expenses while pursuing studies in a foreign country. 

1. Do a bank-to-bank transfer 

Getting a bank-to-bank transfer done has long been the traditional approach for arranging finances. You can request a family member or friend you trust to initiate a bank-to-bank transfer. But the main issue with banks is that they offer the poorest exchange rates in the market. Also, their long transfer times can be a major source of annoyance, especially when there is a financial emergency.

On an average, international bank transfers can take up to anywhere between 5 to 7 days for completion. Apart from overcharging you on currency exchange, private banks make money off of exorbitant transfer charges. It is always best that you inquire about the charges associated with international transfer in advance to avoid last-minute confusion.

If the bank has some special offers in store, being a student might work wonders for exempting you from hefty transfer fees.

2. Rely on a forex card

Forex cards can come to the rescue of international students, especially when they are in urgent need of money. You can ask your parents to reload your forex card with the desired amount of money. As surprising as it may sound, the reloading charges of forex cards are absolutely nil. With forex cards, students abroad can maximize savings up to 6.5% over debit cards and 2.5% over currency notes.

The good news is that your parents will not have to drive to any physical branch to reload the forex card. Notable forex providers allow you to reload your card from any corner of the world provided that you have a decent internet connection. Students who are in dire straits can always opt for emergency cash support no matter which part of the world they are in. 

What is a forex card?

Accepted across over 30 million outlets, forex cards are the most secure and technologically advanced medium of carrying virtual money in today’s age. A forex card can be purchased at exact interbank rates without any added margin. What’s noteworthy is that the card can hold 16 foreign currencies concurrently.

It boasts an expense tracking mechanism to help you control spendings as well as a free insurance cover for added safety. You can claim many discounts and cashback offers while swiping your card at shopping stores, book shops, restaurants etc. 

3. Withdraw money from an international ATM

Withdrawing money from an international ATM is another way to bail yourself out of financial difficulty in hard times. If you have a debit card powered by Visa or Mastercard, you can use it for withdrawals from ATMs of corresponding networks. Debit card overseas usage charges involves cross-currency markup of 3.5% on top of additional 3% ATM withdrawal charges.

Since you are a student with a shoestring budget, all these charges can further increase your financial difficulties. If you decide to use a prepaid forex card for the purpose of ATM withdrawal abroad, you could effectively save up to 7%.

4. Use wire transfer service 

If you are in a quandary regarding finances and don’t have much time in hand, you can request your parents to use a notable wire transfer service. For placing a wire transfer order, your parents will have to share information like purpose of transfer, beneficiary details etc. Everything from submission to signing up of requisite papers will happen online.

Documentation which is necessary for carrying out wire transfers include copies of PAN card, address proof and passport. The best part is that money sent via wire transfers does not take more than 2 days to show up in the recipient’s account. 

5. Pay with your credit card

If you are lucky enough to have a credit card on you, it might come in handy for transacting temporarily until you find an affordable alternative. Take note that credit card transactions are subject to an exorbitant surcharge whenever you make a payment overseas. In fact, the currency conversion fee will be levied each time you transact with your credit card abroad. 

The fees charged by most network payment processors is usually in the range of 1 to 2% of the amount of currency exchanged. Refrain from using your credit card at ATMs as the international withdrawal fees may go up to 4%. 

Takeaway

The number of students flying abroad for study purposes is increasing year by year. Getting enrolled in prestigious institutions overseas is a dream come true for students looking to build fruitful careers in their respective fields. Staying overseas entails swaths of expenses and hence, students must have sufficient money at hand to avoid unnecessary trouble.

While studying in a foreign country broadens your horizons, running out of funds can prove to be a fly in the ointment. For utmost convenience and savings, students should always keep a forex card handy to pay for their expenses overseas. Not only is a forex card easy to reload but is also backed with solid chip protection, which makes it ideal for international use.