Financial Issues To Consider

Before embarking on a new journey to careerdom, prepare your finances. Just because you're going to earn in dollars, it doesn't mean you'll be expense-free on the first day of settling in the US. Here are tips from EducationUSA that can help you.

This article covers the following:
> Budgeting for Your Stay
> Arrangements With Your Bank
> Travel and Settling-In Costs
> Using Traveler's Checks
> Monetary Restrictions

Budgeting for Your Stay
Living Costs: Living costs vary widely and depend on geographic location and individual lifestyles. If you are bringing family members with you, this will, of course, increase your monthly expenses. Living expenses are highest in the large cities, in California, and in the Northeast. Costs can be much lower in the South, the Midwest, and other areas. Be sure to take into account the extra expenses of vacation periods. Vacations are a good time to travel, but there are considerable expenses involved.

Travel Insurance and Health Insurance: You will need travel insurance to cover your trip from home to your work location. You will also need health insurance for the duration of your stay in the United States. Health insurance plans vary in cost.

Baggage Insurance: Baggage insurance protects you against loss, damage, or theft of your baggage. The cost of this insurance is reasonable. It can be purchased at travel agencies and airport kiosks. If a piece of your luggage is lost, file a claim immediately at the airline's desk at the airport. It is a good idea to write down the name of the person who helps you and the work address and telephone number where this person can be reached later. The airline will try to locate the baggage (which may simply have been routed to the wrong destination) and will send it to you at your U.S. address when it is found. If it has not been found after a certain length of time, arrangements will be made to pay you to replace it.

Transportation: Be sure that your annual budget includes expenses for return travel between your home country and your school. If you plan to commute to your workplace, you should add in your commuting expenses.

Communications: Budget carefully for communications, such as telephone calls and postage.

Personal Expenses: Personal expenses include items such as clothing, toiletries, and other basic goods and services. If you have dependents — a spouse and/or children — or if you have special medical needs, substantial additional funds will be needed to meet your living expenses.

Incidentals: Incidental costs can add up quickly and, of course, vary from person to person. Consider your personal needs such as laundry, stationery, photos, dining out, entertainment, and clothing for a climate different than your own.

Recreation and Travel: If you intend to travel, you need to factor in those costs.

Taxes: Make sure you also know whether any income or awards from your home country are taxable.



Arrangements With Your Bank
International exchange rates fluctuate frequently, sometimes daily. Before you travel to the United States, contact a major bank in your home city, preferably a bank with a foreign exchange department, to learn the current exchange rate. Ask the banker to estimate the degree of fluctuation; that is, what did it average in the past year? This will help you to determine more effectively your financial requirements while in the United States. If your bank does not have a foreign exchange department, consider opening an account with a bank that does.

Find out how you can have additional money sent to you while you are in the United States. It is usually safest to have money sent electronically from your home country bank to your U.S. bank once you have opened a U.S. account. Please see "Money Matters" for information on obtaining a U.S. bank account. Ask what the fees will be for transferring money and how long it might take for the money to reach you. If you need fax, telex, or account numbers from your home country bank to request the transfer of funds, bring that information with you.

Sometimes large banks in your home country allow you to purchase foreign currency ahead of time for travel purposes. Ask your travel agent to review your travel plans and advise you on how much money you may require for expenses while you travel. Long-range needs vary with the individual situation and the location, as discussed above.



Travel and Settling-in Costs
Before you leave, you should determine how much money you will require within the first few weeks of your stay in the United States. As you may need several weeks to open a bank account and receive funds from your home country bank, this will be money you will need to carry with you. It is probably safest to carry it in the form of traveler's checks.

You will likely need funds to pay your first semester tuition fees and room and board, if you plan to live in a dormitory. If you plan to live off-campus, you will need money for apartment and, possibly, utility deposits, living expenses while you look for housing, and for transportation.

You may need $800 to $1,000 in traveler's checks to cover other miscellaneous initial expenses and to provide for emergencies until you receive your transfer of funds.

For personal use on your journey and after your arrival in the United States — for taxis, meals, and telephone calls — you should have $100 to $200 in small cash denominations: $20, $10, $5, $1. You can change U.S. paper money into smaller denominations and coins at almost any store. However, small stores and vendors may have difficulty changing bills larger than $20. Do not carry large amounts of cash — it can be lost or stolen. Thieves may view international students as easy victims, because they often do not know or understand the local customs. Be very careful with your cash.

In some cases, you can use your automatic teller card from your home country in U.S. automatic teller machines (ATMs). Inquire with your home bank on the validity of your card in the United States. This could save you the worry of carrying large sums of money in cash or traveler's checks. Note, however, that many banks limit the amount of cash you can take from an ATM on a daily basis.



Using Traveler's Checks
When you travel to the United States, you should carry most of your funds in traveler's checks. If these are not available to you in your home country, buy them at the airport in the United States as soon as you arrive. Traveler's checks provide a safe way to carry money while traveling. They are insured against theft, loss, and damage. With proper identification, you can cash them easily in most places in the United States.

Traveler's checks can also be purchased in most banks. A small fee is added for each check. At the time of purchase you will be asked to sign your name on each traveler's check. Sign each check only once as you are directed. As you cash each check, you will be asked to sign it a second time to verify that you are the person to whom the check was issued. Sign your name "in English" (that is, the way you will be writing your signature in the United States) in the presence of the person to whom you are giving the check.

Be sure you keep a record of your traveler's checks. The bank clerk will give you a form on which to write the numbers of all the checks issued in your name. On this form, alongside each check number, is a space for the date and place you cash the check. Keep this list with you and record data as you use the checks. However, do not keep the list with your traveler's checks. This is for your records, and the information is important in case your checks are lost or stolen and you need to file a claim for reimbursement.



Monetary Restrictions
The U.S. government does not restrict the amount of U.S. currency a nonresident, noncitizen (like yourself) can take or send to the United States for educational expenses. The U.S. government does require, however, that individuals — whether U.S. citizens or not — report the transfer (into or out of the country) of cash or other financial instruments valued at $10,000 or more. Consult with the U.S. embassy or consulate in your country for more information about this requirement.

Many countries do have currency exchange restrictions. If your country has such restrictions, you may have to submit certain documents allowing you to take currency out of the country. For more information, contact the government office that issues passports in your home country.

See more detailed information on money matters and banking in the United States.