Essential Financial Tips for International Students in the U.S.

Discover essential financial tips for international students in the U.S. to manage expenses, open bank accounts, transfer money, and find support.

Whether you’re pursuing a degree, studying English as a Second Language (ESL), or enrolled in a TEFL or CELTA course, navigating life as an international student in the U.S. comes with major financial responsibilities. From tuition fees and rent to healthcare and everyday expenses, the cost of living can quickly add up, especially if you’re coming from a country with a weaker currency.

Regardless of your program type or visa status, you’ll face many of the same financial challenges: opening a bank account, managing daily spending, sending money home, finding scholarships, and preparing for emergencies. Without the right financial tools and planning, these challenges can distract you from your academic or training goals.

In this guide, you’ll learn about the essential financial tools every international student should have to succeed while studying in the U.S.

Finance Tips for International Students in the US

As of the 2023/2024 academic year, over 1.1 million international students were studying at U.S. colleges and universities, with 298,705 new international students recorded in the same academic year, according to the Open Doors 2024 Report on International Educational Exchange.

And given that most international students come from poorer economies, keeping up with the cost of living in the U.S. (and rising tuition rates) can become a real challenge; A challenge that is only amplified by the strength of the U.S. dollar. As the President’s Alliance on Higher Education and Immigration notes, the devalued currencies of international students’ home countries only make it more difficult to afford the U.S. dollar. This in turn makes studying in the U.S. more expensive.

Consequently, some of the major challenges faced by international students in the U.S. are tied to finance. It’s therefore vital that international students equip themselves with the right tools to navigate any financial challenges they face without losing sight of their academic goals.

With that in mind, let’s take a look at some essential financial tips that every international student should consider using while studying in the US.

Banking

Over the past decade, opening a U.S. bank account for non-citizens has become a tougher nut to crack. Most small banks require a Social Security number (SSN) for opening an account. This is only available to citizens, permanent residents, and people legally permitted to work, immediately making some international students ineligible for a U.S. bank account at those banks.

Fortunately, international students in the U.S. still have various avenues to open a bank account for non-residents. Here’s what you should look for:

Go for the Bigger Banks

Some large banks allow international students to open a U.S. bank account with their individual tax identification number (ITIN) — forgoing the SSN requirement — and other documents, such as a valid passport, immigration documents, and proof of address.

You can easily get your ITIN by completing IRS Form W-7.

With that, you can open a non-citizen bank account in some top banks like Chase Bank, Wells Fargo, TD Bank, U.S. Bank, and Capital One.

Some banks even offer specialized bank accounts for international students, such as Bank of America Advantage Banking for international students.

Payment Cards

As an international student trying to manage your finances, you may benefit significantly from payment cards offered by payment providers. These cards allow for more flexible spending while providing you with a U.S. bank account that you can use to receive payments from your employer.

Furthermore, payment cards are usually issued for free, and you don’t need an ITIN or SSN to get one.

International Money Transfers

The bulk of the over 1.1 million international students in the U.S. send money back home at some point to support their families or for other personal expenses.

Some estimates suggest that international students in the U.S. lose over $430 million annually to excessive transfer fees.

This is evidenced by the fact that international transfers, especially through traditional banks, can attract high transfer fees of up to 12% of the transaction amount, according to the Migration Data Portal. You also have to account for losses due to currency conversion fees.

The same report also suggests that it is usually much cheaper to send money through mobile operators and international money transfer service providers.

So, what should you take away from this report as an international student?

The key takeaway is quite simple: you can save hundreds of dollars annually by sending money through international money transfer providers. These providers are companies that specialize in moving money across borders more cheaply and quickly than traditional banks.

Popular services include Wise (formerly TransferWise), Remitly, WorldRemit, and BOSS Money, which offer lower transfer fees, better currency exchange rates, and faster delivery times. Some, like BOSS Money, even charge no fees for your first transactions, making them an excellent option for international students looking to send money home without losing a large portion to costly fees.

Financial Aid & Scholarships

It is true that the U.S. stands out as one of the most expensive countries for international students.

However, although limited, it is not unheard of for international students to get financial aid and even scholarships from U.S. institutions, substantially lessening the financial burdens of studying in the U.S. as a foreigner.

According to a U.S. News survey of some 20 U.S. colleges and universities offering the most financial aid, the average award was around $82,000. Definitely something worth having!

Generally, international students can more easily get financial aid by applying for scholarships offered by their institution, or by applying to private scholarships like the Fulbright Foreign Student Program and the #YouAreWelcomeHere Scholarship.

Financial aid from institutions is usually reserved for graduate students. These come in the form of fellowships or assistantships. Many U.S. institutions also offer work-study programs, which allow international students to work and earn within the school community without disrupting their academic pursuits.

For scholarships, you can subscribe to the following scholarship search tools for international students:

• Funding for U.S. study by the Institute of International Education (IIE)
• International Scholarships and Loans by MPOWER Financing.

Don’t forget to set up notifications!

As a general rule, applying for loans as an international student should be a last resort, as they often come with very high interest rates.

Insurance and Emergency Funds

While it is not compulsory for international students on F and M visas to have health insurance, most schools often require that their students have some form of health insurance. This is generally for your own good, considering that paying U.S. medical bills can be very expensive.

Before you consider a third-party insurance provider, check and confirm if your school offers health insurance for international students and if it’s included in your tuition. If not, you can check for reliable third-party insurance.

Also, consider the need for:

• Renters’ insurance: For liability coverage for your personal belongings at your place of residence, in case of theft, fire, or other unforeseen events that may lead to loss or damage to your property.
• Setting up an emergency fund: Following the effects of the 2020 global pandemic, many schools set up emergency funds to help their international students in times of crisis. However, access to these isn’t guaranteed, and you can’t always rely on them. You should therefore set up a personal emergency fund on your mobile money wallet or with your bank.

If needed, you can use the U.S. Consumer Financial Protection Bureau savings planning tool to build your emergency fund. And while at it, budget for daily or monthly expenses!

Conclusion

Managing your finances as an international student in the US can be challenging; but with the right tools and habits, it becomes much easier to stay on top of your budget and reduce stress.

Before you even travel to the U.S. you should start exploring financial aid and scholarship opportunities. Be proactive, your school’s financial aid office and platforms like IIE’s Funding for U.S. Study are great places to start.

Once you arrive, open a U.S. bank account and secure a payment card. These will help you manage daily transactions, avoid unnecessary fees, and receive payments from on-campus jobs or internships.

When sending money home, use trusted international money transfer providers like BOSS Money, Wise, or Remitly. They often offer better exchange rates and lower fees than traditional banks, helping you save hundreds of dollars over time.

Also, don’t overlook essentials like health insurance, renters’ insurance, and building an emergency fund. These provide a financial safety net for unexpected costs and give you peace of mind.

Finally, build a budget, track your spending, and adjust your plan as your situation or the economy changes. Developing smart financial habits early on will help you feel more secure and focused.

With a clear plan and the right support, you’ll be in control of your finances and free to focus on what really matters, your education and experience in the US.