Summer 2021 has arrived, and it is time to start enjoying your summer vacation! You may have many activities planned whether you are in the U.S. or in your home country. The truth is time flies especially during summer vacation, and before you know it you will have to start planning for the upcoming Fall semester. One important thing every international student should do this summer is save money! This will help prepare you for the next academic year and in the end, you will thank yourself.
Here are 7 helpful tips to stay financially stable this summer:
Creating a budget: Budgeting your money can help you keep track of how you are allocating your resources each month. This is the first step towards managing your finances. You may be excited to enjoy summer activities with friends or family, however, it is important to look at your summer plans and other factors that could impact your budget over the next few months. Summer is the second most expensive season of the year (after winter). Managing your finances during this time will help you better prepare for the upcoming Fall semester.
Tip 1: Go incognito when shopping online
Did you know that you may see different prices based on your location, browsing history, and spending patterns when shopping online? This is called dynamic pricing, it is a sneaky online strategy that retailers use to show you a higher price compared to someone else who pays less when online shopping. Retailers also use this strategy on customers who frequently purchase from them, because they assume someone who purchases the same product often will continue to buy no matter the price. Is this fair? No, but there is a way to stop this from happening to you. All you need to do is clear your cookies, then open an incognito window to start shopping!
Tip 2: Promo codes/coupons
When shopping online you will always see a box that says “promo code”, make sure to take full advantage of this! You can simply google the website’s name along with the promo code and you will most likely find a code that will give you a discount on your purchase. A company called Honey offers an app that will automatically apply savings to your cart when shopping. In addition, when you are at a grocery/convenience store, make sure to check the weekly circular to see if they have discounts on products you are purchasing.
Tip 3: Consider switching to a prepaid cell phone plan-
If you do not have a prepaid cellphone plan, you may want to switch to one to save money, especially as an international student. With a prepaid phone, you pay upfront for your monthly phone usage. You can customize exactly what you want, from a number of minutes, text messages, and gigabytes (GB) of data you may use. For example, Verizon offers an unlimited talk, text, and data plan at $70 per month with a contract. They also offer an unlimited prepaid phone plan for just $60, saving you over $100 for the year for the same services.
Tip 4: Eliminate your subscriptions
Hulu. Disney+. Amazon Prime. Spotify. monthly subscriptions can quickly add up and you may not even realize it. Make sure to review your monthly credit/debit card statements to ensure your recurring charges are correct. Take a moment to look at all your subscriptions and decide which one you use the most. Once you have decided, it is time to say goodbye to all the other ones. Another idea is if your friend is nice enough, they can let you use their subscriptions. In addition, you and other international students can share the cost of subscriptions to make it more affordable for all of you!
Tip 5: Open a high-yield savings account
A high-yield savings account is typically offered by online-only banks. It offers a much higher interest rate compared to the national average which can help you save your money faster. High-yield savings accounts are very similar to any other savings account with just one difference, you can earn 10 times more interest on your money than the average savings account. Want to open an account? Check out online banks such as Marcus by Goldman Sachs, Vio Bank, and Ally.
Tip 6: Know when to book your flights
Flights to and from your home country are likely to be among the most expensive items you will have to factor into your expenses as an international student. However, if you are smart about when you book and fly, you might not have to spend too much. First, you will want to sign up for a travel site that will send you alerts as to when the price of your ideal flight has dropped. Websites like Skyscanner, Kayak, Google Flights, and Hopper are great places to find flight deal alerts.
In addition, make sure to book your flight in advance. For international flights, try to book no later than about 3 months from your travel date. It also might be worth looking into Delta student discounts, as they offer reduced rates for flights if you’re currently enrolled in a U.S. university.
Tip 7: Student Discounts
One benefit of being an international student is all the discounts you can get in the U.S.! Even when you graduate you are still able to take advantage of student discounts, just make sure to keep your ID.
Tip 8: Do not try to cut back on insurance to save $$$
It may seem like a good idea at first to purchase an insurance plan with a higher deductible or reduce your coverage to lower your insurance premium. Before you do so, make sure to remember what insurance is there for. In the event of a sickness or injury, your insurance will protect you from high medical bills in the U.S.
Some expenses are impossible to eliminate, but it does not mean that you cannot reduce the costs. As you start to lower your current expenses this will help save each month. Make sure to not make short-term decisions such as cutting out your insurance as it may cost you more in the long run.
If you are ready to start saving, try the “No Spend Challenge”. With this challenge, you will only try to spend on essential items to help you save fast. It is your choice how long you want to do this challenge, make sure to keep track of what you would have spent, and put that amount into your savings!
