Introduction
The idea of studying abroad is thrilling, but the financial burden associated with it can be daunting. A recent study found that even domestic students have a tight budget, with less than $250 left after educational expenses. For international students, the challenge amplifies with added visa fees, potentially higher education costs, and a new environment.This is where financial literacy plays a crucial role in the life of an international student. It's not just about managing your day-to-day finances, but about choosing to have a better, more secure future.Therefore, in this article, we will cover money-saving tips for college students to help you conquer financial challenges abroad.
Importance of Financial Literacy for OPT Students
Financial literacy is the ability to understand, manage, and save money efficiently. It's essential for OPT students to be financially literate. Unlike domestic students, they face additional financial pressures like higher tuition, transportation costs, visa fees, and navigating a new healthcare system. This heightened financial burden makes money-saving strategies even more important for OPT students.
Practical Saving Strategies for OPT Students
If you're wondering how you can save money as an international student on OPT, here are some tips for saving money in college:
Make a Budget and Keep Track of It
The first step of managing your finances is making a budget and then tracking it– every cent in, every penny out. You can use a budgeting app or a simple notebook to write down all your income and expenses.Knowing where you spend your money empowers you to make smart choices. For example, you may discover that purchasing coffee is increasing your expenses. So now you can decide whether or not to cut back on coffee to save money.Being a student might mean saying no to some things now, like fancy meals or a concert. But these are small compromises, not dead ends. Learning to manage your money now will help you secure a better future in the US.
Pay Yourself First
Imagine this: it's your pay day! But before you start paying your expenses, you strategically set aside a portion of your money for yourself. This is a "Pay yourself first" strategy that prioritizes your saving goals. This method can make a difference for you, particularly if you're an OPT student who may encounter unforeseen expenses.By automatically assigning a portion of your salary to savings, you establish a financial safety net and ensure that you are consistently saving for your long-term goals. This may include unforeseen medical expenditures, auto repairs, or any sudden expense demanding immediate attention.Remember, every drop in the ocean counts. Therefore, even a tiny amount saved consistently can build up tremendously over time.
Start an Emergency Fund
As the name suggests, emergency funds are used in case of emergencies like injury or accidents. While unexpected medical bills are a classic emergency, OPT students face a unique set of financial surprises. Visa renewals, sudden relocations due to housing issues, or even rent increases can throw your budget off track.But you might wonder, "How is it possible to save for an emergency in such a tight budget?" Well, the solution to this problem lies in your hard work and determination. By working some extra hours (if your visa allows) or cutting unnecessary costs, you can gradually build your emergency fund.Even though saving money while on OPT might feel like a long shot, it's not impossible. If you've yet to save money, start today and take a step to improve your future.
Avoid Unnecessary Debt
Have you ever heard of credit card debt? Well, that's exactly what you need to avoid! A situation where you purchase things that are not under your budget.Unlike debit cards that directly access your existing funds, credit cards allow you to borrow money and pay it back later, often with high-interest rates. Not only credit card debt, but mortgage and car loans can cause you a great amount of financial setback too.So to save money and prevent yourself from drowning in debt, understand the concept of credit cards. The key to avoiding its overuse is distinguishing between needs and wants. Basic necessities like rent, groceries, and transportation are needed.However, that new gadget or trendy clothing might be a want, not a need. Before you start buying, ask yourself, "Do I really need this?" This will help you avoid unnecessary debt and make smarter financial decisions.
Leverage Student Discounts
Did you know that Adobe, a computer software company, offers a student discount of 60% on Creative Cloud? Well, it's just one of many student discounts available in the United States to help students with their finances.From cell phones to books, theaters, transportation, and restaurants, there are several student discounts you can take advantage of to save money quickly. But here's the thing: discounts aren't always advertised upfront, so you need to be proactive. Ask cashiers, check online for student promotions, and download apps like UNiDAYS or Student Beans.Remember, every dollar saved makes a difference, giving you more financial freedom to focus on your OPT goals.
Using Technology for Financial Management
The journey of managing your finances and saving money as an OPT student can feel like a rough ride. Luckily, there are tons of financial management tools you can use to smooth out the bumps and navigate toward financial security!Here are some of the tools designed to help you track your finances and save money.
Acorns:
If you enjoy investing but can't seem to make time for it, Acorn is the tool for you. It's an investment tool that uses your spare change. When you connect Acorn to your debit card, your purchase is rounded up to the nearest dollar. The extra money is subsequently deposited in your investment account.The investment then grows over time. This is an excellent strategy to improve your financial situation and save money even on a tight budget.
BookScouter
For students, textbooks can represent a significant financial burden. Fortunately, BookScouter offers a convenient solution for minimizing textbook costs. BookScouter helps you save money on books by letting you compare prices from various retailers on new and used copies. You can get yourself a second-hand book to save some extra cash.In addition to purchasing books, you may easily rent them if you just need them for a short period. You can also sell the book through the platform once you've finished reading it.Therefore, BookScouter can be a valuable tool for reducing your financial burden.
Changed
Feeling overwhelmed by student loans? Like Acorn, Changed works on your spare change. It then deposits this extra dollar towards your student loan.When you connect your bank account to Changed, your purchases are automatically rounded up to the next dollar. Once you reach $50, it will apply the funds to your student loan.But wait—there's more! If you have friends or family who want to help you out, they can use the Changed app to pay off your loans and assist you with your finances. All in all, this tool can be your savior and help you save money as an OPT student.
PocketGuard
If you're prone to spending your money recklessly, PocketGuard can help you put an end to it. This innovative tool acts like Sherlock and closely monitors your costs and spending habits.Its working is simple. It monitors your expenses, analyzes your spending patterns, and informs you if it detects excessive spending in the same category.Moreover, not only is it a good detective, but a good advisor as well. It allows you to identify areas where you may save money. Analyzing your spending habits reveals where your money is going. This detail can undoubtedly help you save some money.
Too Good To Go
Imagine having a nice steak dinner at a significantly reduced price. Well, the Too Good To Go app makes this delightful possibility a reality. Even the most budget-conscious individual deserves a tasty treat now and then. Too Good To Go App acts as your savior that helps you satisfy your cravings without having to break the bank.This innovative app connects you with restaurants, cafes, and stores looking to sell their unsold food at the end of the day. From delicious meals to refreshing beverages, you can find a variety of delectable options at significantly reduced prices.By utilizing Too Good To Go, you don't just enjoy a delicious and affordable meal – you also contribute to a worthy cause. This app helps prevent perfectly good food from going to waste, benefiting both your wallet and the environment.
Additional Saving Tips for OPT Students
Here are some additional tips for saving money in college for OPT students.
Cook Your Food
Health is your greatest wealth. While takeaway food may be appealing, cooking at home leads to significant cost savings while maintaining your health. Invest in basic kitchenware and try out budget-friendly dishes to nourish yourself while stretching your OPT dollars.
Apply for Scholarships
Financial aid may significantly reduce your financial load. Conduct thorough research and apply for scholarships offered by universities, private organizations, and government agencies related to your field of study or background. Every scholarship given means less debt incurred during your OPT program.
Split Rent with Roommates
Consider living with roommates to split rent and utility bills. This collaborative way of living decreases your financial obligations while developing a sense of community.
Use All Available Campus Amenities
Explore the vast array of resources for international students available at your campus. From on-campus fitness centers to libraries with large collections, use these resources to reduce external spending on entertainment, exercise, and information.
Buy Your Clothes at Thrift Stores
Thrift stores are a treasure trove of creative clothing items at a fraction of the retail price. Develop an eye for quality and design while reducing your environmental impact and increasing your OPT budget.
Use Local Classified Ads to Buy Furniture
Second-hand furniture frequently provides exceptional value and charm while supporting local vendors. This strategy promotes environmental sustainability while lowering the cost of initial setup when compared to acquiring new furniture.Another way to purchase affordable house equipment is using Craigslist.
Buy in Bulk with Your Friends
A friend in need is a friend indeed! Consider partnering with a friend to make larger purchases. Wholesale clubs and bulk stores frequently provide large discounts on groceries, household necessities, and personal care products. Splitting the cost among friends results in individual savings while maximizing the benefits of bulk purchasing.
Conclusion
In conclusion, living abroad on an OPT program is an exciting adventure, but managing finances in a new environment can be challenging. However, with a little planning, discipline, and the smart habits outlined in this guide, you can conquer your financial goals and make the most of your OPT experience.Remember, financial literacy empowers you to take control of your future. By adopting these money-saving tips for college students, you'll not only save money and avoid debt but also build a solid foundation for a financially secure future, whether you remain in the US or return home after your program.At Algorizin, we understand the financial maze OPT students face in the U.S. But you don't have to deal with it alone. Joining communities like Algorizin can be the boost you need to obtain financial security. We help OPT students secure jobs post-graduation, alleviating their financial burden.
FAQs
What are common mistakes OPT students make with their finances?
The most common mistake an OPT student may make is failing to file their taxes. While it is reasonable that you may find it confusing, you must understand your tax obligations to avoid penalties.In addition, they often don’t open an account in the local bank which can save money on exchange rate. Learn how and where to open the U.S. bank account as an international student here.
How important is it for OPT students to understand credit and how can they use it wisely?
Banks and lenders use your credit score to determine if you're eligible for a loan. It not only influences your ability to secure loans and future credit cards, but some employers might even factor it into their hiring decisions.Therefore, you need to maintain a good credit score to avoid any further financial or career obstruction.
How can OPT students educate themselves about personal finance and investment?
The best way to learn about personal finance and investment is through online courses, official government websites, or personal blogs. Additionally, you can also get yourself a book on investing or even attend workshops for a more interactive experience.
What role does insurance play in financial planning for OPT students?
Getting yourself an insurance plays a vital role in financial planning by covering your medical bills. These include doctor visits, prescriptions, and even hospitalization. Since the cost of a primary care visit without insurance generally ranges from $150-$300, insurance will help you save money.
How to find the OPT jobs in the USA?
Attending job fairs is one of the easiest ways to locate OPT jobs. You can network and talk to the recruiters or employers directly to learn about the job requirements.You can also look for OPT-specific jobs on websites like Indeed. Additionally, Algorizin can help you with your OPT job search by providing information and coaching throughout the process.
How can I balance saving for the future with enjoying my time in the U.S.?
Balancing saving for the future with enjoying your time in the US requires careful planning and prioritization. Start by setting specific financial goals and creating a budget that allocates funds for savings while also allowing for enjoyment.You can identify areas where you can cut expenses without sacrificing experiences, such as cooking at home instead of dining out frequently. Moreover, look for free or low-cost activities to explore your local area using platforms like Meet Up and make the most of your time in the U.S. It may seem tough to enjoy while saving money, but it is doable with proper planning.
What resources are available to help me find affordable housing as an OPT student?
As an OPT student, you can find affordable housing options using university resources for international students and online marketplace like Craigslist. Identify local community resources that provide housing aid or support services. Look for government institutions, non-profit organizations, and community centers that may provide housing-related services.
What should I do if I experience financial hardship during my OPT period?
Financial hardship during your OPT can be overwhelming. The first step you need to take is to take a moment to reflect carefully. Think of using local resources like food banks to save money on food.Additionally, check with your university’s staff and check if they provide aid or could offer you a part-time position. During this situation, it's also important for you to manage your stress and utilize your current resources carefully.
How can I leverage my OPT experience to build a strong financial future after graduation?
Your OPT days are essential in your planning days for securing a better future in the U.S. Focus on saving, investing in skills, and exploring various financial opportunities.Establish good credit by using credit cards wisely, expand your network, and consider entrepreneurship to diversify your income. Additionally, you can apply and qualify for an H-1B visa which will provide higher earning potential and job security.