Overseas education is an enriching, life-changing experience for a student. It’s an opportunity to think outside the box and explore beyond. Undoubtedly, studying abroad opens the door to a global network and enhances a person’s career chances. What remains the question here? Is it possible for a middle-class scholar to achieve and live this dream?
As per the data given by the Education Ministry, there is a sudden rise in the number of Indian scholars going abroad to pursue higher education. Thus, it broke the past six years record in 2023 with over 7.8 lakh. However, more advancement is yet to be seen when every learner can access this opportunity. Hence, it is only possible through thoughtful financial planning.
Smart financial planning is where a pupil assesses the current economic situation to build a road map for the future to identify one’s goals and build a plan to achieve them.
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To get better clarity on the same, let’s share some secrets and strategies for financial planning when studying abroad.
1. Strategic Budgeting
Budgeting and planning are the foundations of a successful financial plan. Hence, creating and sticking to that is crucial when studying abroad. So, students must consider their tuition fees, accommodation expenses, living costs, and travel charges. Thus, one should draft a budget around this to keep on the proper track.
2. Local Bank Account
A bank account in a study abroad location is critical to manage finances. Whether tracking expenses, receiving funds from home or paying fees, a bank account is beneficial in all scenarios. Thus, a local account can help prevent extra transaction charges, receiving payments from employers while working part-time, and much more.
3. Create a Savings Plan
Warren Buffett, CEO of Berkshire Hathaway, said, “Do not save what is left after spending, but spend what is left after saving.” Hence, as an international student, this quote should become like a mantra. Scholars should design savings and income plans to save enough to repay their education loans in a timely manner.
4. Student Discounts
Scholars should always be aware of their host country’s student-specific discounts. A wide range of deals and offers are present on various products and services. It can help them to save money on an everyday basis and aid in maintaining the set budget. So, always try to carry a student ID to take advantage of these offers.
5. Earn and Learn
Many international students may prefer to take international jobs while studying. Hence, these jobs have decent pay, which can help them use the extra buck to support their lifestyle or pay off their education loan interest. Thus, scholars should ensure their work hours are within their academic commitments.
6. Repayment Strategy
Studying abroad can feel like a constant pressure if a learner has opted for an education loan. Thus, they must have a proper repayment plan in place to avoid chaos in the near future. However, student loans come with a moratorium period, but one has to remember it is not an interest-free period.
To conclude, these are a few strategies for smart financial planning that can play a critical role in shaping many student’s dreams. These unique yet straightforward steps can help scholars to be financially prudent. Thus enabling them to walk on the path of a transformative experience without needing to compromise their financial well-being.
(By Mamta Shekhawat, Founder of Gradding.com)
Disclaimer: Views and facts expressed above are those of the author. They do not necessarily reflect the views of financialexpress.com.