April 2008 newsletter e-Newsletter
One of the most important skills that international students can possess is decent
money management. Since international students have limited and fixed budget, and
are mostly unable to work, they should pay special attention to how they manage
their money. Here are some tips that we hope would assist you to be a better money
manager.
Budgeting
Setting a budget is one of the first steps you can take if you like to gain control
over your money. A budget is a great helping tool to control spending because it
allows you to:
1) see how you’re spending your money;
2) set spending/savings goals for yourself;
3) see how well you stick to the goals you set.
When you see and understand how you spend your money, you are in a much better position
to set realistic goals. Many financial experts suggest that the best way to begin
building a budget is to record all your financial transactions in one month period.
This way, you will know what your spending habits and needs are. Then, working with
this list which includes all your necessary expenses, you should begin to plan your
expenses for each and every month of the year. You will need to take into consideration
all your payments that are not made monthly as well. Some of the most common expenses
for international students include: tuition, fees, rent, meals, health insurance,
transportation, communications, clothes, personal expenses and recreation.
When you set your monthly spending goals make sure they are realistic. This way,
you will not find it too difficult to meet these goals. An additional last item
on your list should be "unexpected costs" which covers exactly that – money for
a rainy day. We also advise you to continue keeping track of your spending habits,
so that you can stay on top of things and fix your budget from time to time. You
might want to use budgeting software such as Quicken or MS Money to track your spending.
We also recommend www.mint.com which provides free online personal finance management,
budget planners and other money management tools. Finally, check out the following
website for over 100 ways that you can save money while in college: http://www.collegescholarships.org/student-living/save-money.htm
Bank Accounts
When you choose a bank account, it is important to choose one that will meet your
needs. Some banks provide free checking accounts for students, so shop around to
ensure that you get the best deal.
If you are also interested in opening a savings account, you should look to see
where you can find the best interest rates. To compare rates a good site to visit
is www.bankrate.com.
Finally, do not write a check if you do not have enough money in your account; your
bank will fine you for this and these fines will add up over time. Avoid these embarrassing
mistakes and you will avoid large overdraft fees.
Credit Cards and Loans
If you have a credit card, you should always try to pay your bills on time. It’s
advisable that you pay the total amount owed each month, because interest rates
can dramatically expand the amount that you will be required to repay. Like anything
else, it is also important to shop around to find the best bargains available. Many
banks offer special credit cards for college students, and might provide various
forms of rewards for spending, and even good grades in college. Make sure that you
take advantage of these options if they are available. Same goes for loans, look
for student loans, usually the interest rates and repayment are designed to accommodate
the cash flow of an average student. Do remember that most loans will require a
U.S. citizen or permanent resident co-signer or grantor.
SOURCES/LINKS
Managing Your Money: Financial Tips for International Students, Scholars and Faculty,
NAFSA Publication
BEST WISHES FOR SMART SAVING, WISE SPENDING, AND GREAT MONEY MANAGEMENT!
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