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Get your finances in order before heading overseas

Monday, 19 November 2012

Posted by Mozo

The thought of upping sticks and moving to a foreign university appeals to a lot of youngsters, but it is essential that people have their finances in order before they relocate.

Last month, the government announced that more than 10,000 Aussies would receive grants to study in Asia, while thousands more would be eligible to take out better student loans.

The plans are aimed at cementing relations between the two regions and are part of the wider $37 million AsiaBound Grants Program introduced by the Gillard Government.

On the flipside, plenty of youngsters from countries like China are keen to enrol on a course at one of Australia's universities.

Unfortunately for them, a recent study conducted by HSBC showed places like Sydney and Melbourne are among the most expensive places to study in the world.

Worryingly, a new report commissioned by the New South Wales government indicated that many students have been forced to stay at illegal boarding houses and apartments because of the lack of affordable accommodation.

With living costs stubbornly high, it is vital that foreigners do not head to another country without adequate finances to fall back on.

Once you have relocated, it is definitely worth spending some time comparing student bank accounts to see if there are any good deals that can take some of the pressure off your savings.

For example, a lot of companies will offer low-interest overdrafts, which can be a great way to supplement any money you make.

Of course, it is important to remember this is not "free money" and the lender is entitled to ask for it back when they see fit.

Overdrafts can also act as a safety buffer should you find it difficult to find a part-time job between semesters.

When comparing different accounts, students should check how good each firm's online banking facilities are, especially if you are in a remote location where there is a limited selection of branches.

Australia is fast becoming a digital society and the last thing you want is to sign up for an account with a company that is behind the times.

Have a question about student banking? Ask the money gurus at Mozo Answers.ADNFCR-1761-ID-801490791-ADNFCR

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