Building a budget is a crucial step in preparing for travel. Doing so will assure that your financial situation allows you to study overseas and will lead you on a successful path so that you can enjoy your time there. Whether you are creating a budget sheet for personal financial clarity, to hold yourself to a set plan, or because your study abroad office requires you to create one for the application process, it’s an important and responsible step to take. Breaking down the costs can also help you see if your state or federal financial aid package can apply to your study abroad expenses. Developing a budget sheet may seem daunting, so here are some resources and information to get started.
First, list your potential expenses and categorize them into essential and non-essential costs. Essential costs may include the cost of accommodations or rent, utilities, tuition or program fees, meals, phone data, banking fees, insurance, visa application fees, academic supplies, and transport. Remember to make currency conversions! Non-essential costs might include the cost of clothing, household items, dining out, gym membership, nights out, vacation/personal trips, movie or concert tickets, gifts or souvenirs. You may also combine multiple of these into one category titled “entertainment”. Many of these costs contribute to wonderful study abroad experiences, thus are important to take into consideration.
Now it’s time to calculate your total income. Here you can count your savings, your family contribution, student loans, any scholarships or stipend, and add them all together. Subtract the total of your essential expenses from your total income, and you’ll end up with a number for your disposable income. This is the amount you can save or spend on non-essential costs.
A different way to do this is to add together your essential AND non-essential costs, then from that total, subtract your total income. Now you have your net cost, which is the cost remaining after all support is accounted for, and you can begin to plan. If there is a large remaining number, you can decide how to raise more funds.
Studying abroad requires adequate preparation. Once you do so, you can make a successful game plan and enjoy your study abroad experience to the fullest. It helps to create a chart for all the information. Developing your budget sheet will provide you with a responsible plan for your international experience and a helpful financial guide for while you are there.
