Money Management
As you know by now, higher education in the U.S. is expensive. The greatest problem international students face after arriving here is maintaining adequate finances for meeting expenses.
Since sources of financial aid are very difficult for international students to obtain, an essential skill for your college success is the ability to become an effective manager of your money. It is an important skill which you will need throughout your life.
The best way to manage money is to develop a monthly budget plan. Here are some suggestions for making a budget:
- Determine your monthly "fixed expenses." This will usually include rent, utilities, laundry, insurance premiums, toiletries, etc.
- Estimate your "variable expenses" for a given month. These will include food, entertainment, clothing, books, supplies, and travel.
- Keep track of all your expenses in a notebook and analyze them regularly to identify unnecessary or wasteful expenditures.
- Buying and maintaining a car adds a lot of expense to your monthly budget. Not only will you need to buy auto insurance and pay yearly registration, but there are also the monthly expenses of gasoline and routine maintenance to consider. One way to cut this expense is to live near the University and therefore avoid the need to have a car. A bicycle is a good means of transportation for students living near the University.
- Avoid becoming dependent on credit cards. The fastest way to bankruptcy is spending money you do not have. The "buy now-pay later" approach to budgeting rarely succeeds.
It is important to note that your budget represents only an estimate of monthly expenses. It is difficult, if not impossible, to determine unexpected expenses. Set aside some money every month for the "unexpected."
Many international students live for a lot less than the estimated amount listed on the I-20 Form while others may spend more. Part of it may depend on the lifestyle you are used to living. Generally speaking, students live on a lower budget than people who are working and learn how to cut costs by taking advantage of university and community discounts offered to students. They also learn how to find lower cost entertainment without missing any of the fun!