Prepare Financially & Enjoy Your Time Abroad
Pack your bags—and your budget! In part one, Study Abroad Financial Planning, we focused on pre-departure financial planning: creating a budget, understanding financial aid options, and bringing the correct credit and debit cards. Hopefully, that blog helped you in your planning and budgeting, and now you’re ready to board the plane!
I studied abroad in Madrid during the spring of 2024 of my junior year. I’m a Financial Wellness Coach at the Center for Financial Wellness, a peer-to-peer program housed in the Financial Aid and Scholarships Office. Now that you’re only a few weeks away from your study abroad program, let’s talk about some ways you can stay financially responsible while making the most of your experience.
Budgeting
We covered how to create a budget in part one, and now it’s time to put it into action and track your spending regularly. Set aside time each week to review your budget, and use different tabs or sections for each trip you plan to see the full cost of weekend getaways. If you find your pre-departure budget is too restrictive or unrealistic, adjust your spending categories as needed—just ensure you prioritize Needs vs. Wants and cover essentials like housing, meals, and transportation first.
If you’re looking for a template to get you started or want to discuss your personal financial situation, feel free to book an appointment with the Center for Financial Wellness to chat with one of our coaches.
Taj Mahal in Agra, India.
Navigating Currency & Payments
Managing currency and payments abroad can seem daunting, but with a few strategies, it’s entirely manageable. Always carry some local currency for emergencies or cash-only situations, like small shops, markets, or public transportation. Use ATMs tied to major banks to withdraw cash, as they typically offer better exchange rates than airport kiosks or currency exchange counters. Be cautious of ATM fees, and opt for a debit card with no international withdrawal fees, such as those offered by Charles Schwab or Fidelity.
When paying with a credit card, always choose to pay in the local currency rather than your home currency. This gives you the best exchange rate and avoids dynamic currency conversion fees. It’s also a good idea to use a travel credit card with no foreign transaction fees to save money on every purchase. Lastly, keep a backup payment method, like a second card or emergency cash, in case your primary card is lost or declined. During my trip to Morocco, many places only accepted cash, and since I didn’t bring my debit card, I had to rely on friends to withdraw money for me. Learn from my mistakes and always be prepared—you’ll thank yourself later! Managing your payments wisely will help you stay on budget and avoid unnecessary fees, leaving you more money to enjoy your adventures abroad.
My hostel in Fez, Morocco, that I found on HostelWorld for $10 per night.
Saving on Travel Expenses & Food
The key to weekend trips is planning ahead to help cut down on transportation and accommodation costs. To find affordable flights, I relied on Skyscanner, Google Flights, and budget airlines like RyanAir. Be sure to pack light, as most budget airlines charge steep fees for extra baggage.
For accommodations, HostelWorld is a great resource for finding deals on hostels. Not only is it budget-friendly, but staying in hostels is also a fun way to meet other travelers. Many hostels organize free or heavily discounted tours, social events, and activities. I also used GuruWalk, an app that offers tip-based walking tours in cities all over the world. One of my favorite experiences abroad was a Harry Potter-themed walking tour in Edinburgh through GuruWalk. I got to explore the sites that inspired J.K. Rowling’s characters, and even the cafe where she wrote the novels!
Consider purchasing a local SIM card or an international plan to avoid the high costs of roaming. Many local providers offer prepaid plans with plenty of data for navigation, communication, and even mobile payments. Alternatively, check if your home carrier offers reasonably priced international plans. Using Wi-Fi for calls and messages whenever possible can also help you save on mobile costs.
Another great tip is to visit local markets or grocery stores for meals instead of eating out every time. Check if your local grocery store offers membership or loyalty cards, as these can help you save money through discounts and rewards. Markets often offer fresh, affordable food and provide an authentic glimpse into the local culture. In Barcelona, I discovered vibrant street markets filled with fresh fruit, pastries, and local delicacies in several parts of the city. It was not only a budget-friendly option but also an amazing way to indulge in the local cuisine and experience the lively atmosphere. Markets are also great places to pick up unique souvenirs like spices or handmade goods that are both affordable and meaningful.
Barcelona’s markets offered fresh, cheap fruits and vegetables, some of which I had never seen before!
Save While Having Fun
Try to find the balance between enjoying yourself and staying financially responsible. Part of the fun of studying abroad is having spontaneous adventures and once-in-a-lifetime experiences, but it doesn’t have to come at the expense of your budget and financial goals! Learning how to cut down on unnecessary costs will help you avoid financial stress and make the most of your time. Safe travels!
My Harry Potter themed tour of Edinburgh included a stop at Victoria Street, which inspired Diagon Alley.
Financial Tips During Study Abroad Actionable Checklist
- Track expenses weekly
- Always pay in local currency
- Use debit cards with no ATM fees for cash withdrawals
- Avoid overspending on non-essentials
- Use apps such as HostelWorld, SkyScanner, and GuruWalk during weekend trips
- Keep emergency funds accessible but separate
Simone Beilin, Class of 2025, is majoring in economics and minoring in data science.
Want More?
- Before you travel, prepare with Study Abroad Financial Planning.
- Everything you need to know about studying abroad.
- Learn about one student’s interning experience abroad
- Read about Kelsey’s summer abroad travels with the Berkeley Symphony Orchestra and her time studying abroad in South America.