Money Matters

Although it can be difficult to determine a one-size-fits-all budget as there are so many different types of Global Opportunities experiences, there are a few big-ticket items you can determine reasonably quickly and make some assumptions from there.

Accommodation and flights are likely going to be the biggest determining factors of your budget, so once you have an idea of how much your accommodation and flights will be, the rest of your budget will be easier to figure out from there.

Determining a budget is probably most complicated for semester exchange students or those who will be overseas for more than a few weeks, as there might be more considerations to have when it comes to accommodation costs, insurance and everyday living costs.

To get started, Semester Exchange and Short-Term Exchange students can refer to the relevant Exchange Partner Profile Page on the Global Opportunities Website. Click through to your host university and select the ‘Living’ tab for a rough estimate on the cost-of-living in your host country. You can use this as a starting point, but you might find that you need to add or remove certain items, based on your personal circumstances.

Make sure you:

• Do your research on your destination(s) and the costs you're likely to face
• Calculate how much money you’ve already saved for your overseas study (don’t forget to include any grants, loans, scholarships, or regular payments such as Centrelink)
• Create a daily and overall budget based on your savings and the cost of living in your destination. Try to stick to your daily budget as much as you can, so that you don’t find yourself without spending money halfway through your trip
• Keep an eye on the exchange rate and bear in mind that it might fluctuate during your time overseas. Check the exchange rates using the OANDA currency converter. Learn the currency rate and download XE currency converter app to help you.
• Remember that you may need to purchase household items upon arrival – check out local markets, charity shops and ask local students about cheap buys
• DO NOT rely on finding paid work in your host country as this may be prohibited by your visa conditions or it may not be available. If your visa does permit it, check the detail. There may be restrictions to the number of hours you can work.

You should also use the budgeting guide below to help estimate how much money you’re likely to need.

Budgeting Guide

To make sure that you can easily access your money while overseas and avoid any issues, before your departure you will need to look at:

• Notifying relevant financial institutions in Australia or your home country (e.g. banks, credit card companies) about your travel plans. This should avoid having transactions declined or marked as fraudulent while overseas.
• Being aware of any fees associated with international withdrawals/purchases from an Australian account/card or your home country account/card. You can query this with your bank before you leave.
• Find out if it’s more typical to pay using cash or card in your host country. If paying with card is customary (as it is in most of Scandinavia, for example), it’s especially important that you don’t get charged additional fees when paying this way.
• Check out the local banks in your host city if you want to open an account once you arrive – they may have lower fees and special student deals. If you do, consider a large national bank rather than a state/local bank where charges may be higher and branches less accessible. Find out before you leave what documents might be required to open a bank account in your host country.

It can be a good idea to bring at least a little (host country) cash with you from home. Even if you bring just enough for a cab ride and a single meal, it’s a good safety net just in case something goes wrong when you arrive.

Do your research before exchanging cash – shop around to get a good exchange rate with low (or no) fees. You may have the opportunity to stop and exchange money at the airport, but don’t rely on this. Typically, currency exchange outlets in airports offer poorer rates than you might find elsewhere.

You should also investigate exchange rate fees on your bank cards. Some banks won’t charge fees to purchase in foreign currency but the conversion rate they give you might be well below the exchange rate. Doing a little research ahead of time can save you literally hundreds of dollars in the long run.

This might not be something you think much about while in your home country, but you’ll need to think about how you’re going to access your money while overseas.

We recommend you arrange to be able to access your money using a combination of methods so if there is an issue you don’t get stuck with no access to money. Recommended methods can include a Travel Card from your bank, credit card, electronic transfer, and/or cash.

It’s also not advisable to take large amounts of cash with you – not only is it quite a risk in terms of loss or theft, but it may also raise a few questions passing through customs.

• Travel Cards are pre-paid debit cards for travellers, and some don’t have any exchange rate/withdrawal fees associated with them.
• Electronic transfers from your Australian account to a local bank are useful for transferring large amounts of money but can be costly. Alternatively, consider using transfer services provided by companies such as Western Union.
• Debit and credit cards are useful when making larger payments for making larger payments, such as for travel bookings. Visa and MasterCard are more widely accepted than American Express. Companies like Latitude 28 Degrees offer credit cards that have no international transaction or currency conversion fees on purchases overseas.

Find out what services are available with your existing credit cards (e.g. cash advances, Cirrus and Maestro network). Note that cash advance charges are quite high, and it’s generally advisable not to use these unless you’re desperate. Credit services normally have foreign currency conversion charges at a certain percentage. You may want to consider a pre-paid foreign currency travel card instead of a credit card.

Ensure someone at home has authority to act on your behalf i.e. is authorised to be your Power of Attorney. They should be able to transfer money to you immediately.

Be aware that services available in Australia may not be used frequently in your host country. Some countries will not use EFTPOS widely and may rely more on cash. ATMs may have restricted hours of operation and may not accept cards from other countries, or you may need a new card and/or a special international PIN. Do your research and be prepared so that you don’t get stuck!