How to Budget for Medical or Dental School Abroad: A Guide for Canadian Students

Planning to study medicine abroad? Or looking to study dentistry overseas? It’s a big step with plenty of unknowns – especially in your first year. Between tuition, housing and the cost of living somewhere new, there is a lot to sort out, and budgeting is near the top of the list. A clear picture of what things cost, how you’ll cover them and how currency exchange works can help you stay on track and feel confident about your finances, so you can focus on school.

What is the cost of studying abroad?

There is no single price tag. Your expenses for studying abroad depend on your school, country, city, program, living situation – residence or not – and lifestyle. Every destination has its own cost structure and funding opportunities for international students, whether you’re looking at popular choices like the UK, US, Australia, Ireland, and the Caribbean, or somewhere else entirely. Because there is no set figure, it’s best to build your own picture, one category at a time. Here are the main ones to plan for:

It’s a good idea to set up a study abroad budget, where you can organize your expenses and identify how you’ll cover them. RBC’s Financial Checklist for Canadian Medical and Dental Students Studying Abroad walks you through what to sort out before you go.

Sort your costs

Once your categories are mapped out, it helps to sort each one into needs and nice-to-haves and to separate one-time costs (your visa, security deposit and furniture) from the monthly expenses you will carry all year. Building this distinction upfront makes it much clearer to determine how much you’ll need up front versus how much to budget month to month.

Keep everyday costs in check

Small day-to-day costs can add up quickly, so be sure to budget for them – the RBC Student Budget Calculator can walk you through the common costs of student life. The good news? Student discounts are one of the easiest ways to keep these costs down. Many transit systems, software subscriptions, restaurants and retailers offer student pricing, and an international student card can open up further discounts in some countries. It’s always worth asking before you pay full price!

It also helps to keep your emergency fund accessible from wherever you are. Many students split their savings between a Canadian account and a local one, so an unexpected expense never hinges on a transfer clearing or a good exchange rate on a particular day.

Make use of student resources

Depending on where you are studying, there may be organizations that support Canadian students applying to medical or dental schools abroad, along with official government and education sites. These can be helpful sources of information on the application process, tuition, estimated living expenses and other things you’re planning for.

How can you manage two currencies while studying abroad?

Studying abroad usually means having to plan your money in two currencies. Your funding – such as your savings, a line of credit or family support – is likely in Canadian dollars, while your rent, groceries and tuition are covered in the local currency.

The impact of exchange rates

The exchange rate between the two currencies determines how far your Canadian dollars actually go – and because rates move regularly, the same expense can cost you a little more or a little less from one month to the next. Getting comfortable with this idea before you leave can make it easier to plan out your expenses.

Building a buffer

Since rates do change, building a small buffer in your study abroad budget – roughly five to ten per cent – can help keep you on track.

A quick example can show the importance of a buffer. Say your rent is a fixed cost of 1,500 in the local currency. As the rate shifts, that same bill can cost you more or less in Canadian dollars from month to month.

It’s the same rent, but three different costs and a swing of roughly $215 a month. Over a school year, these costs can have a meaningful impact on your budget – which is what the buffer is meant to absorb.

Should you budget in Canadian dollars or the local currency?

As you’re working in two currencies, you may wonder – what currency should my budget use? A good approach is to budget in local currency so you know that you can cover your bills without having to calculate exchange rates in your head every time a cost comes up. At the same time, it’s worth keeping an eye on your Canadian funds, because you need them to carry you through the school year.

You don’t need a special app to manage this. A simple spreadsheet with two columns – one for the local currency amount and one for the Canadian dollar equivalent, updated once a month – is enough to give you a clear view of both. Reviewing it monthly, rather than every time you spend, will help keep the exchange-rate noise from becoming a distraction while still catching any meaningful drift in your budget.

How can you keep your Canadian finances on track?

Even while you’re living abroad, a few things back home keep ticking along, and staying on top of them can save headaches later.

Your bank accounts

On the banking side, it’s usually worth keeping your Canadian account open and opening a local account once you arrive. Your Canadian account keeps you connected to any funding or family support in Canadian dollars, while the local account handles your day-to-day bills without conversion on every purchase.

When you move money between the two accounts, larger, less frequent transfers tend to cost less in fees than multiple smaller transfers. Planning ahead and batching your transfers can help lower your overall costs. It is also worth keeping an eye on exchange rates. While it is difficult to predict where currency will go next, transferring funds when the Canadian dollar is relatively strong may help stretch your budget.

Tax filing

Being abroad doesn’t automatically end your Canadian tax filing obligations – and they can slip off your radar over a multi-year program. Your Registered Retirement Savings Plan (RRSP) and Tax-Free Savings Account (TFSA) contribution room also keeps accruing whether or not you are actively contributing.

If you’re away for more than a year, it’s a good idea to check in with a financial advisor on your Canadian tax filing obligations and learn how your residency status affects your accounts – so nothing catches you off guard when you return.

Access from abroad

It’s never been easier to access your accounts from anywhere, as long as you’ve got the right tools set up. Before you go, set up online and mobile banking and confirm your bank can reach you at an email or number you’ll have outside Canada.

A budget for studying abroad turns a list of unknowns into numbers you can plan around. Map out your costs by category, decide how you’ll handle multiple currencies and build in some breathing room for rate changes. With this done, the money side of school can move into the background. And instead, you can put your energy where it belongs: on your studies and the experience of living somewhere new.