Study abroad is a significant financial investment to begin with, and in a recession, every dollar seems to matter twice as much. Due to the rising living costs, changing currency values, and limited students' budgets, it can be challenging to manage your finances. The good news is that with a good plan and some preparation, you can make your study abroad experience both affordable and free of worry. Below are practical, proven tips and tricks for international students to save money while still gaining experience.

Effect of the Recession On Students

Studying abroad is made far more difficult by a recession for students, as the day-to-day costs of living, such as rent and groceries, are higher. Exchange rate fluctuations reduce the value of money sent from home, while poor availability of part-time jobs limits students’ opportunities to earn extra income. Meanwhile, tuition or service fees may be increased by the universities, and scholarships may be more competitive. All of those contribute to financial strain and can make students who are trying to budget in a new country feel pressure.

The different effects of the recession on students are:

  • Studies will become costlier:
    Colleges and universities will not increase tuition fees; they might even cut the fees. But the quantitative cost will feel higher than usual, and students may find it difficult to pay their fees. 

  • Increase in educated unemployed youth:
    The number of job vacancies will dip drastically, as a result of which many newly graduated students will find it difficult to get a job because the market will already be filled with job-seeking unemployed professionals. 

  • Increase in accommodation and travel costs:
    Once you go abroad for your education, your living expenses will take away a big share of your money from your pocket. During the recession, the monetary dependency of localities on the earnings from international students increased. Therefore, if a recession hits, it will surely hit your pocket too. 

Will There Be a Recession in Students Again

  • Recessions are a natural phase of the economic cycle and may occur from time to time.

  • As a result of the downturn, students could have to deal with higher living costs, fewer part-time work options, and fluctuations in currency.

  • Planning a budget, saving regularly and having an emergency fund can also help to minimise financial damage.

7 Tips to Save Money While Studying Abroad During a Recession

Managing your money is even more important when the economy is uncertain. Being an international student, every cost - from rent to daily meals - seems heavier in times of recession. To keep you on track, here are simple and practical tips to save money, stretch your budget, and make your study abroad journey a bit more affordable. 

1. Use Public Transportation

  • When moving abroad, a lack of knowledge about public transportation can lighten your pocket, as you might always prefer the easy way out by travelling via cab or taxi and overpaying for your transportation needs.
  • Therefore, the first thing you should do when going abroad is to learn how the public transportation system works there.
  • Check the bus networks and subways available in your city and cut your transportation costs.

2. Carry and Use Your International Student ID

  • Don’t forget to take your student ID card from your university, and if they do not provide it, then apply online for an international student ID card.
  • The ISIC card is proof of your status as a student, endorsed by UNESCO. It offers you 1,60,000 offers and discounts for travel, food, accommodation, shopping, and transport across 133 countries.
  • You can save lots of money by taking advantage of the discounts.

3. Learn to Plan a Budget

  • The key to saving money, especially in a recession, is knowing exactly where your cash is going. 
  • List all your fixed costs (rent, utilities, your phone bill, transportation), and all your variable costs (food, going out, supplies for classes).
  • Use budgeting apps or even simple spreadsheets to keep an eye on your spending every week to see where you might be overspending.
  • When you have a well-defined, realistic budget, it’s easier to stay on track and not panic and stress out about money at the last minute. 

4. Save Money on Phone Bills and International Calls

  • While studying abroad, talking to family and friends is reassuring and healing sometimes, but the bills for international calls will cause a huge dent in your wallet, even if you use a loan SIM card.
  • To avoid it, you can use apps like Skype, Google Voice, WhatsApp, or Viber. A local SIM card will keep your local calls cheap, and these apps will keep your international call costs nil.

5. Freelance from Home

  • If you don’t find it comfortable to work by going out every day, you can freelance from the comfort of your home.
  • You can create an account on various freelancing websites, list your skills, apply for projects, and just sit back and wait. 
  • If you are a graphic designer or content writer, upload samples of your work to your LinkedIn profile and continue hunting for freelancing projects.

6. On-Campus Jobs

  • Many universities offer on-campus jobs, which may not pay much but would be pretty easy to do and give you time to study on the side.
  • You can easily apply for an assistantship in teaching or research, a library attendant, an administrative assistant, or a System administrator.
  • These jobs will not only bring in some much-needed money but will also provide you with a good experience and boost your CV.

7. Apply for Scholarships and Grants

  • The sweetest way to save money is by not spending it at all and still enjoying its benefits.
  • A scholarship for your study abroad education will do exactly this. Different scholarships are awarded to international students.
  • You can find the best suitable scholarship for yourself on the WeMakeScholars scholarship portal. 

Why Financial Planning Matters More During a Recession

  • In a recession, expenses increase, and sources of revenue become less reliable, so students are more likely to go into debt.
  • Budgeting allows you to have a sense of control by monitoring your spending, focusing on needs and budgeting for unexpected expenses. 
  • With a good plan in place, you can make your money go further and reduce the risk of money worries when you’re studying in another country. 

How to Avoid Hidden Costs While Studying Abroad

  • Secondary costs such as additional university fees, accommodation charges, bank fees, and travel expenses can accumulate unexpectedly.
  • To prevent these, read all the clauses before signing any document, do price comparisons, get the opinion of seniors about the usual hidden charges and maintain a cushion in your finances.
  • Staying alert and informed are the best ways to prevent wasteful spending.

Conclusion

Studying abroad during a recession can be challenging for students, but there are ways to manage your finances. Creating a budget, taking advantage of discounts, living frugally, and searching for part-time jobs or scholarships can help you maintain a healthy bank account. With some financial planning, your study abroad adventure can be a stress-free one.