International Students
From completing applications to packing your belongings, you’ve done a lot to prepare for your studies in the United States. However, one crucial aspect that is sometimes overlooked is financial planning. While proving your ability to cover tuition and living expenses is essential for obtaining your visa, it doesn’t necessarily prepare you for the real-world financial decisions and challenges you’ll face once you arrive.
Understanding Expenses
Before you can create a budget or spending plan, you may need to do some additional research to estimate your costs prior to arriving in the United States. Some common costs to account for in your financial plan or budget includes:
- Tuition & Fees: Varies by university and program.
- Room & Board: This may include rent, utilities, & food costs.
- Books & Supplies: Textbooks, software, and materials.
- Travel: Flights home, local transportation, and visits.
- Emergencies: Unecpected medical, travel, or personal expenses.
- Recreation & Fun: Entertainment, dining out, and social activities.
Know Your Tuition
Each University of Illinois campus has different tuition and fee structures. Use the following registrar office web pages to estimate costs at your University:
The calculators provided through the registrars can help you estimate the cost of your degree, however, it's important to remember that the course load you take as well as the types of classes you enroll in determines the amount charged to your student account. You can learn more about understanding your student account and international payment options through our parent department, University Bursar.
Cost of Living
Depending on which campus you are planning on attending and what lifestyle choices you make, living expenses can vary significantly from student to student.
Your lifestyle choices dictate how much your living expenses will be, and it’s important, particularly if you’re borrowing to pay for school, that you live like a student while you’re a student so you don’t have to live like a student when you graduate.
In our fall 2024 Budget Hacks webinar, embedded below, we illustrated how average rent varies between Chicago, Champaign, Urbana, and Springfield depending on what kind of lodging you may be looking for.
There are many cost of living calculators available online to compare costs by location to help with estimating expenses based on cost of living differences like groceries, utilities, transportation, etc.
Surprising Expenses for New International Students
Many new students are caught off-guard by these U.S.-specific costs:
- Healthcare: Unlike some countries with universal healthcare, you must pay for insurance and additional medical services.
- Mobile Phones: Initial phone purchase, activation fees, security deposits, and monthly costs may be higher than your home country.
- Sales Tax: Listed prices often do not include sales tax which may add 6-12% to the total cost of purchases when you checkout.
- Tipping Culture: 15-25% tip is expected in restaurants, taxis, salons, and for many other services.
- Security Deposits: For housing, utilities, and other services, you may be required to pay a security deposit.
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Water: Utilities, like water, electricity, or internet, vary in how they are handled with your lodging, which can be confusing depending on your living situation.
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Winter Supplies: Cold-weather clothing and gear can be expensive if you're from a warmer climate.
Again, these are just a few of the unexpected expenses that some international students run into when they come to the US.
Banking in the USA
As an international student, you may want specific services or products from a financial institution, including ATM or online banking that is provided in several languages, lower wire transfer rates, or nationwide branches (for in-person service and access to your money when you travel for example). Whatever you choose, it must be the right fit for you, and if the financial institution that you choose no longer meets your needs, you can always switch to a different one.
Financial Institutions: Banks & Credit Unions
In the U.S., money kept in deposit accounts is typically insured by the federal government. The two main types of financial institutions are banks and credit unions.
Deposit accounts—such as checking and savings accounts—at insured financial institutions are typically protected up to at least $250,000 per individual.
Financial institutions that offer deposit insurance will display this information in their physical locations and on their websites. Do not do business with a financial institution that does not offer deposit insurance on savings or checking accounts.
Important: Investment products like bonds, IRAs, and mutual funds are not insured. If you’re unsure whether your money is covered, ask your financial institution.
Online Banks & Credit Unions
Online financial institutions can be a great option—don’t feel limited to a physical branch near your campus.
When choosing a bank or credit union, compare:
- Fee structures (e.g., maintenance fees, overdraft fees)
- Services offered (e.g., online banking, wire transfers)
- ATM access and branch availability
Choosing a Financial Institution & Opening an Account
Step 1: Decide What Services You Need
Financial institutions offer different types of accounts and services, including:
- Checking accounts (often used for daily spending)
- Savings accounts (for saving and earning interest)
- Money market accounts (interest-bearing deposit account)
- Certificates of deposit (CDs) (fixed-term, higher-yield interest savings)
- Loans (personal, auto, student loans)
Step 2: Select a Financial Institution
- Choose a bank that is FDIC insured
- Choose a credit union that is NCUA insured
You can learn more about the differences between banks and credit unions through our Making Cents of Money podcast episode with the Illinois Department of Financial and Professional Regulation. This episode is also available on Apple Podcasts, YouTube Music, Spotify, and our blog.
Step 3: Prepare Required Documents
Most financial institutions will require:
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
- Proof of physical and mailing address
- Government-issued ID (e.g., passport, driver’s license)
- Initial deposit (varies by institution)
Reminder: The process for opening an account may vary by institution and account type.
Checking vs. Savings Accounts
| Feature |
Savings Account |
Checking Account |
| Primary Use |
Saving money |
Making purchases & paying bills |
| Interest Earned? |
Yes (usually) |
Sometimes |
| Minimum Balance? |
Often required |
Varies |
| Fees? |
Possible withdrawal limits |
May have monthly fees |
Credit vs. Debit Cards
- Debit Card: Withdraws money directly from your checking or savings account.
- Credit Card: Uses a line of credit, meaning you borrow money and repay it later.
Tips for Building Credit as an International Student
Avoid applying for credit cards immediately upon arrival until you understand U.S. credit systems.
- Look for student-friendly credit cards. Some financial institutions offer credit cards designed for international students.
- Consider a secured credit card. If you're unable to get a traditional credit card, a secured card can help build your credit.
- Use credit responsibly. Remember, any amount spent on a credit card must be repaid, often with interest or fees.
You can learn more about credit through our Borrow course and Credit page.
Tax Tips for Foreign Nationals
If you are an international student, there are many factors that may complicate your situation. Here are some resources to help you navigate filing taxes and understanding withholding.
- Initiate a Tax Status Review with University Payroll & Benefits any time your tax liability changes (e.g., marriage, birth of a child, etc.)
- Please contact your International Services office for your campus to ask if tax preparation for international students and scholars is provided through your University.
It's important to note that regardless of the tax preparation software you use, you may have to pay additional fees to use extended features of the program, like state-level filing through the software.
Our January 2025 webinar with Urbana's Gies College of Business covered many considerations for international students filing taxes in the United States.
SMMC Educational Resources for International Students
Budgeting & Financial Planning
Our University Resources page highlights services at each University that support students' needs, including:
- Food & housing assistance
- Meal plans
- Scholarships
- Student legal services
- Wellness-related offices.
Additionally, there are community and aid programs listed at the bottom that you may be eligible for regardless of where you live in the United States.