Managing finances in a new country involves navigating unfamiliar banking systems, understanding tax obligations, and budgeting in a different currency. This guide provides practical financial guidance specifically for international students in the United States.
Financial Essentials
Banking: Open a US bank account as soon as possible with your passport and I-20.
Tax Filing: International students must file taxes annually, even with no income.
Health Insurance: Required for most visa holders and often included in student fees.
Currency Management: Use low-fee transfer services to move money internationally.
Setting Up Banking
- Choose a student-friendly bank: Many banks offer free checking for students with no minimum balance
- Required documents: Passport, I-20 or DS-2019, proof of enrollment, and sometimes SSN or ITIN
- Credit building: Start with a secured credit card to build US credit history
- Remittance services: Compare Wise, Remitly, and Western Union for transferring money from home
Budgeting in the US
- Housing: Typically your largest expense. Compare on-campus and off-campus costs
- Food: Cooking is much cheaper than eating out. Budget $200-400 per month
- Transportation: Student transit passes, biking, or carpooling save hundreds per month
- Phone plan: MVNOs like Mint Mobile or Visible offer affordable plans for students
Tax Filing Requirements
All F-1 and J-1 students must file Form 8843 annually, even without US income. If you earned income, you must also file Form 1040NR. You are generally considered a non-resident alien for tax purposes for your first 5 years. Do NOT use TurboTax as it does not handle non-resident returns. Use Sprintax or Glacier Tax Prep instead.
Scholarships for International Students
- University scholarships: Many schools offer merit or need-based aid to international students
- External scholarships: Fulbright, AAUW, and discipline-specific organizations
- Home country funding: Check government and private scholarship programs in your country
- Assistantships: Teaching and research positions provide tuition waivers and stipends
Pro Strategy: Open a high-yield savings account in addition to your checking account. Online banks like Marcus, Ally, or Discover offer 4-5% APY. Even saving $50 per month builds an emergency fund that provides security and peace of mind during your studies.