MONEY MATTERS

Program Costs and Billing

Approved Programs

Students participating on an approved program will be billed directly by Skidmore. Students will be charged the Skidmore Comprehensive fee for their academic year or semester abroad. This fee is equal to tuition, room at the apartment rate, and full board. Skidmore will handle payment to program providers on behalf of the students. Skidmore will cover tuition and mandatory academic fees, room and board, medical insurance, and any other mandatory program fees. Students are responsible for airfare, books, and personal expenses. Students will be billed directly by Skidmore’s Bursar’s Office. Any billing questions should be directed to the Office of International Programs.

Financial Aid

Skidmore students participating on Skidmore and approved programs may use all of their financial aid to offset the costs of the program. If you currently receive financial aid, you should make an appointment with the Office of Student Aid to review the use of your financial aid. You must do this before you leave campus for your study abroad program. In addition to Skidmore financial aid, some programs offer merit or need-based scholarships for particular programs they sponsor. Please be sure to contact the program sponsor about possible scholarships. Also check for national scholarship funds for study abroad. A good source is FinAid.com. Although limited, there are some organizations that offer grants to students studying overseas. Please check with the Office of International Programs for details. If you are a non-Skidmore student participating on a Skidmore program, please check with your home campus for details regarding financial aid.

Money Management Overseas

One of the most frequently asked questions is, “How do I handle my money once I'm overseas?” There are many answers to that question. The best way to handle money varies depending upon your program site and your preferences. However, there are some general rules to keep in mind when planning for expenses. We strongly encourage you to discuss your budget and money management with your parents or guardians before you depart. It is important to understand how these matters will be handled and to have a support person at home to assist you in case of an emergency.

Foreign Currency

Although it seems obvious, please remember you will be dealing with a foreign currency while abroad. This money will look odd and seem like Monopoly money for a while. But it is real. Some countries deal mainly in coins and have coins worth almost $10. Once you arrive you may be tempted to exchange all of your money into foreign currency and then start to spend. Please wait! It will take you a few weeks to really figure out how the exchange rate works and what things are really worth. Students can find themselves broke after only a month or two because they didn't understand how the new currency really works. Whatever you “need” to buy will be available within a few weeks after your arrival. Take the time to get to know the currency and city before you spend all your cash.

Traveler’s Checks & Cash

One of the most important things to remember: do not travel with a lot of cash. Cash is impossible to replace if lost or stolen. If you must travel with a lot of money, make sure it is in the form of traveler’s checks. Traveler’s checks are the safest form of money you can use as they are insured and can be replaced if lost or stolen. Always keep a copy of the serial numbers for your checks and record the check numbers as you cash them. (Keep them separate from your checks and leave a copy with someone at home.) This will make it easier to replace them if necessary.

Although you can obtain traveler’s checks in other currencies, we recommend only carrying traveler’s checks in U.S. dollars. You must purchase them yourself in the U.S. as you will be the only person allowed to sign them once overseas. These can be cashed at most foreign banks or currency exchange centers for a small fee. Unlike in the U.S., traveler’s checks cannot be used to make purchases in stores in most countries, but must be exchanged for cash.

While you should not carry a lot of cash, you should exchange a small amount of U.S. dollars into the local currency of your country of destination before you depart, enough local currency to cover the first few days in your new country. Your program sponsor should be able to give you an idea of how much local currency to bring. With advance notice, currency can be exchanged at some of the larger banks in Saratoga Springs and Albany. (If you are going to a lesser-traveled country, you may not be able to obtain currency until your arrival.) Be aware that you will be charged a fee for the service. Currency can also be exchanged at the airport prior to your departure. It is also a good idea to keep a small amount of U.S. dollars ($50) for your return trip. Again, this will cover expenses when you return home.

ATMs & Credit Cards

The advent of the ATM machine has greatly facilitated money transactions abroad. Most countries now offer this service on a wide scale basis. However, be sure to check with your program sponsor before planning to use ATMs as your sole means of obtaining money. Also check with your home bank to be sure you understand any fees or surcharges applicable to overseas use of your ATM card. These charges can be steep and will determine how you budget your money.

If ATM machines are widely available where you will be studying, you may want to look into obtaining a "debit" card that takes money directly from your account. This way, if you need additional funds, your family can deposit them directly into your account in the U.S. and you can have access to them almost immediately. Again make sure that your card has international withdrawal privileges, that you understand the fees associated with the use of an ATM card, and that you have a numerical PIN number. (Some machines don’t have the alphabet written above the numbers that makes it very difficult to punch in your code).

Credit cards are another source of money which are widely accepted throughout the world. As in the U.S., credits cards can be used in shops, restaurants, and hotels. If you do decide to get a credit card for your trip, Visa and Mastercard are the most widely accepted names. American Express is often accepted but is less widely used.

Credit cards can also be used for cash advances in case of an emergency. We do not, however, recommend that you use them for this purpose unless it is truly an emergency! Cash advances carry tremendous fees and interest charges, which, if not paid immediately, add up to huge expenses. It is a good idea to check with your credit card carrier for details before you depart. Remember to leave your credit card numbers with someone at home in case they are stolen or lost while you are abroad.

Other Options

If you will be in a country without good ATM and credit card access, there are other options for your money. As mentioned, Traveler’s checks are commonly accepted in most countries. If funds get tight and you need emergency cash, money can be sent as a bank draft in the foreign currency. This costs about $25 and takes at least one week. It can also be wired directly to a foreign bank via telex, which costs about $30 and takes from 1 to 5 days. Funds can also be transferred via American Express or Western Union. It is a good idea to have your parents or guardian look into this before you depart so that you have an emergency plan in place. In a true emergency, the local U.S. Embassy or Consulate can assist you.

Power of Attorney

You may want to consider obtaining a Power of Attorney for financial matters that will allow another individual (preferably your parent or guardian) to sign on your behalf. You may restrict signatory authority to only being able to endorse checks or expand it to include permission to take care of all your financial matters while you are out of the country. The choice is yours. However, by all means do not have your family or friends mail checks or other important paperwork to you overseas to be signed. You take great risk at having the check lost in the mail.

Your Budget

The amount of money you need to budget for your stay overseas includes more than your program fee. It is important to understand the total out-of-pocket expenses you will incur so that you can budget appropriately. Otherwise you could end up running out of money half way through the semester. The organization sponsoring your program should be able to provide you with a detailed estimate of all costs you will be expected to cover while abroad. You should discuss this information with your parents or guardian in order to establish a realistic budget. Be sure to include expenses such as airfare, daily transportation, visa and passport fees, books and instructional materials, extra meals, entertainment, laundry, travel during breaks, etc. Some of these expenses may be covered by the program, some may not. Again, check with the program provider for details. Before you leave, talk with students who have participated in the program to learn more about realistic budgeting. (Your program sponsor can provide you with the name of program alumni.) Remember that Skidmore will cover costs for all required academic fees, room and a meal plan if it is available. If your program does not provide a meal plan, Skidmore will not charge you the meal plan fee. Instead you will be responsible for covering those costs on site. Budget appropriately.

Budget Worksheet

Students often are concerned about the “hidden” costs of study abroad. This Budget Worksheet in is designed to assist you in thinking about all the possible expenditures that can come up prior to and during your study abroad program. Not all categories will apply for every student. Spend some time working on this yourself and share it with your parents.

• Academics
• Money Matters
• Safety Abroad
• Health Abroad
• Preparing to Go
• International Travel
• Living Abroad
• Cultural Shock
• Fifty Cultural Questions
• Useful links
• Pre-Departure

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last updated November 4, 2005