Multi-currency & travel: How to budget for study abroad: before you go and month by month
To budget for study abroad, split the costs in two: one-off costs before and on arrival, like visas, flights, deposits and insurance, and a monthly budget in the local currency for rent, food, transport and travel. Budget in the currency you'll spend, and keep a buffer for the first month, which costs most.
By Wealtie Team · 3 min read
Key takeaways
- Split the costs into one-off costs (visa, flights, deposit, insurance, setup) and a monthly budget for living.
- Budget in the local currency you'll spend, and convert your funding into it at a cautious rate.
- The first month costs the most: deposits, bedding, a phone SIM, transport passes and kitchen basics.
- Card fees on foreign spending add up over a semester; use a card or account without them.
- Give weekend travel its own line, because it's where study-abroad budgets most often go over.
How do you budget for study abroad?
Split the costs in two: what you pay once, and what you pay every month.
One-off costs come before and just after you arrive: the visa, flights, insurance, a rental deposit and setting up a room. Monthly costs are rent, food, transport, study costs, a phone and travel. Price both, add them up, and compare them with your funding: loans, grants, savings, family support or a part-time job.
What one-off costs should you plan for?
More than you'd expect, mostly in the first few weeks.
- Travel there and back, including luggage fees.
- Visa and admin: application fees, documents, translations, registration.
- Insurance: health and travel, if your programme or home cover doesn't include them.
- Rental deposit and first rent, often due before any grant arrives.
- Setup: bedding, kitchen basics, a local SIM, a transport pass, adaptors.
The first month is the expensive one. Plan for it separately, and have the money ready before you go, not after your first payment lands.
How do you set a monthly budget abroad?
In the local currency, line by line, using local prices.
Here's a worked example in round numbers, the same in any currency, for a five-month semester:
| Cost | Amount |
|---|---|
| One-off costs (flights, visa, insurance, deposit, setup) | 2,000 |
| Rent, per month | 450 |
| Food, per month | 220 |
| Transport, per month | 50 |
| Study costs, per month | 30 |
| Phone and other, per month | 50 |
| Travel and weekends, per month | 100 |
| Monthly total | 900 |
| Semester total (2,000 + 5 × 900) | 6,500 |
If your funding for the semester is 6,600, there are 100 to spare, which is tight. The fix is to find the margin before you leave: cheaper housing, cooking more, or fewer trips.
Check local prices before you set the numbers. University housing pages, student forums and students who've done the exchange before are the best sources. How to budget as a college student explains turning a term's funding into a monthly amount.
What if your funding arrives late?
Plan for it, because it often does. Grants and loans for study abroad are sometimes paid weeks after the semester starts, or in parts.
Find out the payment dates before you go, and work out how much you need to cover until the first payment arrives: usually the first rent, the deposit and a month of living costs. That's the amount to have in savings, or arranged with family, before you leave. If there's a gap you can't cover, ask your university's international office early; many have emergency funds or can tell you when payments are due.
Which currency should you budget in?
The one you'll spend. If you live in euros, budget in euros, even if your loan arrives in another currency.
Convert your funding into the local currency at a cautious rate, a little worse than today's, so a swing in the exchange rate doesn't leave you short. Move money across in a few large transfers rather than many small ones, to keep fees down. Multi-currency budgeting explains why your total can move even when you haven't spent anything.
How do you avoid card fees abroad?
Use a card or account without foreign transaction fees, and pay in the local currency.
Fees of a few percent on every coffee and grocery shop add up over a semester. When a card machine or cash machine offers to charge you in your home currency, decline and pay in the local one; the conversion it offers is usually worse. Foreign transaction fees shows how common those fees are and how to avoid them.
How do you budget for weekend trips?
Give travel its own line and a fixed monthly amount. Weekend trips are a big part of studying abroad, and they're where budgets most often break. Decide the amount before the semester starts, book early, and travel with friends to share accommodation. A trip that doesn't fit this month's amount can wait for next month's.
How do you track spending in two currencies?
In Wealtie, keep an account in the local currency for spending abroad, alongside your home account in its own currency. Wealtie supports 68 currencies, and each account keeps its own; totals are converted into your chosen display currency at each day's rate. Set a monthly budget for life abroad, and Budget Health warns you mid-month if your spending pace will take you over, before the last weeks of the semester get tight.
Questions people ask
Price the one-off costs before you leave, then set a monthly budget in the local currency for rent, food, transport, study costs and travel. Divide your total funding by the months you'll be away to check that it covers both.
The local currency you'll spend day to day. Convert your loan, grant or savings into it at a cautious rate, so a weaker exchange rate doesn't leave you short.
First-month setup costs like bedding and kitchen basics, a rental deposit, a local SIM, transport passes, card fees on foreign spending, and weekend trips.
More than a normal month. Plan for the rent deposit and first rent, plus setup costs and a buffer, before your first grant or loan payment arrives.
Use a card or account that doesn't charge foreign transaction fees, and pay in the local currency when a card machine offers to convert to your home currency.
This article is general information, not financial, tax or legal advice. Your situation is your own; check the numbers that apply to you before you act on them.
