How to create a budget for studying in the U.S.
Studying abroad in the United States can be a life-changing adventure, but you’ll have many different types of expenses to manage. Creating and following a budget will streamline the process and help you make the most of your international experience.
By tracking your income and expenses, you’ll gain control over your finances and avoid spending beyond your means. Here are some tips for how to budget as an international student.
1. Add up all your income
Your first step in creating a budget as an international student is reviewing your income. You might be getting money from various sources, such as:
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- A part-time job, internship or assistantship
- Savings
- Contributions from parents
- Grants
- Scholarships
- Student loans
Figure out how much money you have coming in on a monthly basis. If your part-time job pays you every two weeks, for instance, then multiply your paycheck by two to get the monthly total. If, on the other hand, your student loan amount covers your full academic year, then divide that sum by the number of months you’re in school to get a monthly average.
Add up the full amount so you have a clear sense of your total monthly income.
2. Make a list of your expenses
Once you’ve added up your income, it’s time to make a list of your monthly expenses. Expenses typically fall into two categories:
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- Fixed expenses: These stay the same each month and may include rent, utilities and insurance. Your tuition bill may also be fixed and often covers a semester at a time.
- Variable expenses: These can fluctuate and may include groceries, clothing and entertainment. You can estimate your variable expenses for the full year and divide by the number of months you’re in school to get a monthly average.
Once you have a list of your monthly expenses, subtract the total from your monthly income. If your expenses exceed your income, you’ll need to cut back on spending or make more money to get out of the red. If you break even, you may still want to adjust your budget so you have some money to put into savings from month to month.
3. Track your earning and spending
Once you have a clear sense of your monthly income and expenses, it’s time to put your budget into action. This means tracking your earnings and spending to make sure you’re staying within your means.
You could use a simple spreadsheet to stick to your budget each month. Here’s a college budget example that could help, but feel free to adjust it to fit your individual needs.
| Monthly income | Amount |
| Wages from a job, internship or assistantship | |
| Savings or contributions from family | |
| Financial aid, such as grants, scholarships and student loans | |
| Other sources of income | |
| Total | $0 |
| Fixed expenses (monthly) | Amount |
| Rent | |
| Utilities | |
| Phone bill | |
| Health insurance | |
| Transportation | |
| Minimum student loan payments | |
| Other | |
| Total spent on fixed expenses | $0 |
| Variable expenses (monthly) | Amount |
| Groceries and restaurants | |
| Clothing | |
| Entertainment | |
| Gym membership | |
| Travel and vacations | |
| Streaming services | |
| Other | |
| Total spent on variable expenses | $0 |
| Total expenses | $0 |
| Income remaining (total income minus total expenses) | $0 |
There are also many budget-tracking apps that simplify the process in student budgeting, such as Mint, YNAB and PocketGuard.
4. Find the right budgeting strategy
Tracking your income and expenses is only one piece of the budgeting puzzle – you’ll also need discipline to spend less than you earn. There are a few budgeting strategies that can help, such as:
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- 50/30/20 rule of budgeting: This approach has you put 50% of your income toward needs, 30% toward wants and 20% toward savings and extra debt payments.
- Zero-based budgeting: With this framework, you designate a purpose for every dollar in your budget, whether it goes toward rent, a concert ticket or savings.
You might have to experiment with different strategies along the way to find one that works for you. Some months are going to be more expensive than others, so make sure to adjust your budget as you go along.
5. Funnel money into an emergency fund
If you’re spending all your money each month, you could be left struggling if you run into an unexpected expense. If possible, set aside some money into an emergency fund each month so you have some savings to fall back on.
Consider opening a high-yield savings account so you’re earning interest on your balance, and explore other tips for saving money. By prioritizing saving money, you’ll be financially prepared if you run into an emergency.
Bonus tip: Look for ways to save
As a student, you’re probably living on a pretty tight budget. Fortunately, there are various ways to reduce your spending and boost your savings. Here are some tips for saving money on a daily basis:
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- Make the most of student discounts: As a student, you might qualify for discounts from major retailers like Amazon and Apple, as well as local stores and restaurants.
- Opt for meal planning over eating out: Dining out at restaurants and ordering takeout can get expensive fast. By meal planning and grocery shopping, you could significantly reduce the amount you spend on food each month.
- Buy or rent your books secondhand: New textbooks can also be pricey, so consider shopping second-hand or renting your books with sites like Perlego, eCampus, Chegg, CampusBooks.com and eBay.
- Live with a roommate or two: Sharing your living space with roommates means you can split the cost of rent, utilities and internet rather than having to pay all the expenses on your own.
- Seek out free activities in your area: Sign up for a local newsletter to stay updated about free events where you live. If the weather allows, you could also opt for exercising outside so you can skip a pricey gym membership.
- Limit spending splurges: Finally, try to keep your splurges and impulse buying to a minimum so you’re not breaking your budget. If you tend to shop when you’re stressed out or tired, look for other ways to make yourself feel better that don’t involve spending money.
Final thoughts: Create a budget for studying in the U.S. to give you peace and guidance
You probably don’t have a ton of wiggle room in your budget studying overseas as an international student, so getting clear on your finances will give you direction. Following a budget and finding ways to save money will give you peace of mind and help you meet your financial goals as you work toward your degree.
For more advice on getting ready, check out these five tips for preparing to study in the U.S.
