Study abroad budgeting

1. Tuition and academic fees

Tuition is likely to be your largest expense for both graduate and undergraduate students. Graduate programs in the U.S. and Canada can be particularly costly, especially in fields like business, law or medicine. Don’t forget to include other academic-related fees, such as registration fees, lab fees and the cost of books and materials.

Tip: Check if your university offers payment plans or scholarships that can help reduce your tuition burden.

2. Housing and utilities

Housing costs vary widely depending on the city and type of accommodation. On-campus housing may offer convenience but can be more expensive than off-campus options. Be sure to factor in utilities such as electricity, water and internet.

Tip: Consider shared housing or finding a roommate to lower costs. Always budget for security deposits and initial setup costs when moving in.

3. Food and groceries

Your food budget will depend on your lifestyle. Cooking at home is generally cheaper than eating out, and it’s important to be realistic about how often you’ll dine out or grab coffee on the go.

Tip: Look for local markets or discount grocery stores to save money. Planning your meals and shopping with a list can also help you stay within budget.

4. Transportation

Whether you’re relying on public transportation, biking or driving, transportation costs are an important part of your budget. In many cities, public transit passes offer significant savings.

Tip: Research student discounts on public transportation or consider purchasing a bike for short commutes. If you plan to drive, factor in car insurance, fuel and maintenance costs.

5. Health insurance

Health insurance for international students is mandatory by many schools in both the U.S. and Canada. The cost of insurance can vary depending on the coverage and your university’s requirements.

Tip: Review the health insurance options offered by your university and compare them with external providers to find the best coverage at a reasonable price.

6. Personal expenses and entertainment

Personal expenses include everything from toiletries and clothing to entertainment and social activities. While these costs are often underestimated, they can add up quickly.

Tip: Set a monthly limit for nonessential spending and try to stick to it. Look for free or low-cost activities on campus or in your community to keep entertainment costs down.

7. Emergency fund

Unexpected expenses can arise, such as medical emergencies, travel for family events or unexpected school-related costs. An emergency fund is crucial for these unplanned expenses.

Tip: Aim to set aside a small portion of your budget each month to build your emergency fund over time.

1. Underestimating living expenses

It’s easy to overlook or underestimate the costs associated with day-to-day living, such as groceries, transportation and utilities. These small expenses can add up quickly, leading to budget shortfalls.

Solution: Be realistic when estimating your living expenses. Review your spending habits and adjust your budget to reflect actual costs. Track your spending for a month to identify areas where you might be underestimating.

2. Failing to set aside money for emergencies

Unexpected expenses can throw off your budget without an emergency fund, leading to stress and financial strain.

Solution: Start building an emergency fund by setting aside a small amount each month. Even a modest emergency fund can provide a financial cushion in times of need.

3. Over-reliance on credit cards

Although credit cards are a useful part of how to build credit in the U.S. using credit cards for everyday expenses can lead to debt if you’re not careful, especially if you only make minimum payments each month.

Solution: Use credit cards sparingly and aim to pay off the balance in full each month to avoid interest charges. Stick to your budget and avoid using credit to cover shortfalls in your monthly income.

4. Ignoring nonessential spending

It’s easy to overspend on entertainment, dining out and other non-essential purchases, which can quickly deplete your budget.

Solution: Set a monthly limit for nonessential spending and track it closely. Look for free or low-cost entertainment and social activities alternatives to stay within your budget.

At MPOWER Financing, we believe funding a student’s education is only the first step to success – not the last. That’s why every MPOWER student gains access to exclusive career, visa and financial resources through our Path2Success program. We help students succeed.

Financial services

We enable international students to access U.S. currency as soon as they arrive at their university,  allowing students to hit the ground running.

We offer financial services including:

• A prequalified U.S. credit card with cashback benefits
• A prequalified no minimum balance U.S. bank account

Exclusive discounts

As soon as students e-sign their loan offer, they’ll unlock offers on mobile SIM cards and air travel through our partners. They’ll also receive frequent emails with detailed guidance and insider tips on starting at university and accelerating their path to success.

Visa support

MPOWER helps international students understand and navigate elements of the U.S. student visa process, including their visa interview.

MPOWER’s visa support services include:

• A free visa support letter showing students are financially supported for school
• A free visa essentials course, so students are fully prepared for their visa interview

Visa support upgrades

Also, MPOWER partners offer personalized mock interviews and live Q&A webinars for students who want additional support (US$99 fee required).  

For an additional fee, MPOWER students can  speak with former U.S. visa officers.

Career services

We recognize the significance of securing a professional career in the United States. Students aren’t alone in this journey – MPOWER Financing is here to support the internship and full-time job search.

Through our partners we offer exclusive career services including:

• A guided internship and job search tool for F-1, OPT and H-1B visa-sponsored roles
• A resume builder to match targeted job requirements
• Job application support with profile and skill set match
• A directory of F-1 eligible job roles for STEM and non-STEM degrees