The college years provide an opportunity to learn a skill you will need
for the rest of your life: budgeting. While studying in the United
States you will have to know your available funds and expected expenses
and make sure you don't spend beyond your means.Before traveling to the United States, gather all of your estimated expenses. Here is a list to work from:
- Tuition and room and board (minus any deposits you have already paid)
- Transportation: airfare, train tickets, bus fares, and cab fares
- School supplies: computer, books, paper, folders, and pens
- Personal expenses: medications, toiletries, and clothing
- Health insurance
- Entertainment: meals in restaurants, movie tickets, and sporting events
If you aren't sure how much to budget for some items, check with your school; many colleges provide cost of attendance guidelines that give an idea of how much students will spend. For example, the University of Florida recently figured that a student living on campus might spend $3,750 per year on books, computer equipment, transportation, clothing, and insurance—tuition and room/board would be additional, bringing the yearly total to $12,140.
When you have your expenses totaled, open an account with a U.S. bank and deposit the appropriate amount. If scholarships, grants, or a private sponsor will pay part of your expenses, your deposit will be smaller than if you are funding your education privately. Arrange with the bank to have checks and an ATM/debit card issued so that you can access your funds when needed.
It's a good idea to add extra funds to your initial deposit for incidental or emergency expenses. Ying Xu, a student at the College of Saint Benedict in St. Joseph, Minnesota, recalled that she did not plan for the varying weather when she traveled from her home in Jamaica. “When I have to buy winter clothes, the price is really expensive,” she says.
During your first semester of study, record your expenses weekly in a notebook or computer file, or save your receipts. Reviewing your spending regularly will help keep you on track for your budget so you don't spend too much. If, after the first few weeks or months, you find you cannot stick to your original budget, you can revise your plan. For example, if local transportation (such as the subway or bus) costs more than you expected, you will need to adjust your budget; you can do this either by adding funds to your bank account or by reducing expenditures in other areas.
Avoiding credit cards is important because the interest on these purchases adds up quickly and can be difficult to repay. This is usually easy for international students because many U.S. banks do not issue credit cards to non-U.S. citizens. If you do have a credit card, reserve it for emergencies only.
