5 money-saving tips when studying abroad in Europe
By: Clark Newlove
Tags: Personal Finance, Lifestyle, Travel, Fintech

Every year, hundreds of thousands of US college students leave their campuses, usually for a full semester in the fall or spring, to continue their studies abroad. The experience is commonly regarded as a once-in-a-lifetime opportunity, where undergraduate students immerse themselves in vibrant cultures, discover new passions, expand their network of friends and of course, travel to tons of amazing places that they’ve never been to before.

Choosing to study abroad is both incredibly exciting and overwhelming — students typically spend 6–12 months researching destinations, applying to schools or programs, renewing their passports, and so forth. It’s easy to get so caught up in the planning phase that students often neglect the most important factor: studying abroad can be very expensive.

You may have heard rumors of tuition being much cheaper at schools in Europe compared to those in the US; unfortunately for you, most universities do not discount the cost of their overseas programs from their standard tuition rate, which according to data collected by The College Board stood at an average of $34,740 for the 2017 / 2018 school year. External programs are sometimes slightly cheaper, but after you add in the cost of transportation, food, attractions, and your wild weekend activities — you’ll likely be left with an empty bank account by the time you’re back home, regardless of the program you choose.

Putting the necessary expenses (tuition, plane tickets, living accommodations) aside, how are you supposed to make the most out of your experience without totally breaking the bank? Here are five tips to help you save money — and time — while you embark on your grand adventure.

1. Avoid frequent trips to the ATM (and try not to use ATMs that look sketchy).

Unlike the US, cash is still king in many European countries, and withdrawing money from an ATM frequently can be very costly in the long run. Most ATMs in prime locations have expensive fees; it’s more efficient to withdraw a large sum of money that will last you through the month than it is to withdraw on a weekly basis. Just be sure to bring a small lock box to keep your money and other valuable possessions safe.

Your US bank may also have partnerships with international banks, in which case you aren’t charged for various international fees. Contact your bank before your program starts to find out information and get some cash in advance if they give you a good rate.

2. Set up weekly and monthly spending budgets.

After factoring out large expenses such as airline tickets (which according to Forbes, should be purchased roughly two months in advance to get the best deals), allocate weekly and monthly budgets to keep track of your spending. Set specific limits for food and groceries, transportation, and the occasional souvenir — sticking to a consistent budget will help ensure things don’t get out of hand.

There are countless ways to enjoy yourself without having to spend much at all. Buying a bottle of wine for a few euros and heading to a local park with friends is a great way to spend an afternoon, especially after an expensive skydiving outing in Interlaken the weekend before.

3. Be aware of foreign exchange rates and transaction fees.

Exchange rates constantly fluctuate, due to the fact that currencies never stop being traded. Do a little research before you go abroad to get an idea of the conversion rates. There’s no such thing as an even exchange: that tasty tiramisu for €7 would be close to $10 in the US! Here is a good conversion tool that is updated 24/7.

Foreign transaction fees when using credit or debit cards typically range from 1–3% of the total purchase amount, and in certain cases can be even higher. It’s a good idea to contact both your bank and credit card provider to get an idea of how much extra you’ll be paying for various purchases.

4. Become an expert on your city’s transit system.

For just a couple of euros, you can get pretty much anywhere in big cities via the metro system. Taxis and Ubers are far more expensive and often take longer due to traffic (and those narrow European roads!). You should also be aware of the transit system’s operating hours — you may find yourself stranded at an empty station after a late night out.

The best way to learn the ins and outs of public transportation is to actually take a few rides. Google Maps and other apps such as Citymapper can help you calculate the quickest routes in real time, with updates on when trains and buses arrive.

Many cities and school programs offer discounted student passes or stipends for transportation. Be sure to bring your student ID!

Bikes are also a great option, especially in cities like Copenhagen, Amsterdam, and Seville. You’ll get to your destination quickly while burning off the calories from the croissant you ate for breakfast.

5. Consider opening an account with a travel-friendly bank.