Money Management Tips for Students Abroad, According to Nadhira Afifa

Every year, thousands of Indonesian students pursue higher education abroad. According to data compiled by UNESCO, the number of Indonesian students studying abroad from 2013 to 2019 grew by 21%. The pandemic has not dampened students’ enthusiasm for pursuing education abroad. This is evident in the increase in the total number of LPDP scholarship recipients from Indonesia studying abroad—24,000 students in 2020, compared to 20,000 students in 2019.

It is no surprise that interest in studying abroad continues to grow, given the countless academic, career, and personal development benefits that come with such an experience. However, pursuing an education abroad can be quite expensive and requires careful financial planning—from managing personal expenses and paying rent to sending money back home.

Here are the best money management tips from Nadhira Afifa, an Indonesian who earned a master’s degree in Public Health from the Harvard T.H. Chan School of Public Health through an LPDP scholarship.

A. Creating a Financial Plan

According to Nadhira, the main and most important aspect of financial management is creating a clear financial plan. When planning for weekly and monthly living expenses, unexpected costs—such as repairing a broken cell phone—must also be factored in.

“Small things that are sometimes considered trivial, such as fixing a broken item, can actually incur significant costs and ultimately impact the total living expenses we’ve already budgeted,” said Nadhira Afifa.

B. Understanding the Costs of Sending Money Abroad

There are various fees associated with foreign currency transactions, such as when we want to send money to another country or when we use an Indonesian ATM card abroad. According to Nadhira, there are many international money transfer services, but most of them lack price transparency. “I often don’t know how much the bank charges or whether I’m getting a good rate. On top of that, it’s hard to be sure when the money will reach its destination,” said Nadhira Afifa.

While in the U.S., Wise is an international money transfer service that Nadhira considers to be affordable, easy, and convenient to use, and it also provides detailed information on transfer fees and the status of the transfer.

“Wise has a fairly simple process and offers certainty when transferring money abroad. Whenever I’ve used Wise, the transfer only took 10 minutes and the money arrived right away. The exchange rate is pretty good. Plus, the transfer fee is very affordable. Usually, a single transaction costs around 200,000 rupiah, but with Wise it’s only 63,000 rupiah,” explained Nadhira Afifa.

C. Pay close attention to exchange rates

When sending or receiving money from abroad, be sure to carefully check the exchange rate to ensure you get a good deal. Understanding foreign currency differences is crucial because exchange rate fluctuations are particularly important for international students.

“This shouldn’t be underestimated because what initially seems like a small amount can make a big difference in large transactions, especially in countries like the U.S., where the cost of living is relatively high,” said Nadhira Afifa.

Elian Ciptono, Indonesia Country Manager at Wise, addressed Nadhira Afifa’s concern: “Most people tend to pay more than they need to because traditional services often add hidden fees to the exchange rates they use, making it difficult for users to know what other costs are being charged.”

Elian added that Wise does not charge customers exchange rate fees. “We use fair mid-market rates that anyone can view on Google and Reuters; we always display our prices transparently and only charge customers a low fee,” explained Elian.

Wise is licensed as a Money Transfer Operator by Bank Indonesia. Wise users worldwide can send money from 43 countries, including Indonesia, and can also send money to 80 countries around the world.