Managing Finances as an International Student in the U.S

Background

Managing finances is one of the most important yet overlooked aspects of studying abroad. As an international student in the United States, understanding banking systems, credit cards, and basic investment options can significantly reduce stress and help you avoid costly mistakes.

While many students focus mainly on academics and social life, poor financial management can lead to unnecessary fees, missed opportunities, and in some cases, issues that may even affect visa compliance. Smart financial planning from day one makes student life smoother and more secure.

The Problem Most International Students Face

Many international students struggle with money management due to a lack of familiarity with the U.S. financial system. Common mistakes include:

Choosing a bank without nearby branches or campus access
Ignoring monthly maintenance fees
Not understanding credit card rewards and credit scores
Missing out on cashback, savings, or investment opportunities

Without proper planning, even students with sufficient financial resources can face avoidable difficulties and financial stress.

Real-Life Examples

Consider a student with an excellent academic background but no knowledge of U.S. banking. They may open an account at a bank with no local branches or fail to meet balance requirements, resulting in unnecessary monthly fees.

On the other hand, a student who researches banks, credit cards, and money-transfer options can optimize spending, earn cashback, and send money home efficiently—creating a much smoother overall experience despite having fewer financial resources.

Tips, Methods, and Guidelines

To manage your finances better, you need 3 things: a bank account, a credit card, and investment apps.

Essential Financial Tools Every Student Needs

To manage finances effectively in the U.S., you need three key things:

A bank account
A credit card
Investment and money-management apps

Choosing the Right Bank Account

There are many banks in the U.S., but the best choice is one that:

Has a branch near your campus
Offers a reliable mobile app
Provides Zelle transfers
Has low or waived student fees

Recommended Banks:

Chase
First Horizon
Truist (formerly SunTrust)

I personally prefer Chase—mainly because of its user-friendly app, strong Zelle limits, and even customized debit cards (yes, Disney designs included). Zelle, by the way, is a bank-to-bank transfer service widely used in the U.S. for instant payments.

First Horizon and Truist are great for student accounts:

Truist offers a 5-year student account status, renewed annually
First Horizon also offers student benefits, but requires yearly student verification

If none of these banks are near you, good alternatives include:

Bank of America
Fifth Third Bank
Regions Bank

Most banks provide a free debit card and chequebook. Non-student accounts usually have a monthly maintenance fee, but this can often be waived by setting up direct deposit or maintaining a minimum balance.

Understanding Credit Cards in the U.S.

Credit cards are extremely useful in the U.S., especially for building a credit history. If you work on campus or as a research assistant, you can apply for a Social Security Number (SSN) using your employment letter—this allows you to apply for credit cards.

Best First Credit Card for Students

Discover Student Card is one of the easiest cards to get approved for:

$20 annual student reward for maintaining a certain CGPA
Cashback match at the end of your first year

For example, if you earn $150 cashback in your first year, Discover will match it and turn it into $300 automatically.

Limitations of Discover:

Lower credit limits
Not accepted at some small stores

Building Better Credit Cards Over Time

Once you build a credit history, you can apply for:

Chase Freedom
American Express (Amex)

I personally like Discover and Chase Freedom because of their rotating 5% cashback categories every quarter.

For example:

October–December: 5% cashback on Amazon purchases
Another quarter: gas stations or groceries

For purchases outside these categories, cashback is usually 1%, so I use Amex, which offers around 1.5% cashback.

Amex also provides limited-time offers like:

“Spend $X, get $Y back”
10% cashback with selected brands

Other cards that are easier to get without a long credit history include:

Citi Bank
Capital One

Investment Apps for International Students

Many students don’t realize this, but you are legally allowed to invest in stocks, crypto, and even real estate on a student visa.

Popular apps include:

Venmo – crypto investments
Cash App – crypto and limited stock options

For stock investing, Public is an excellent platform, but it requires you to be classified as a Resident Alien for tax purposes, which not all students qualify for immediately.

This section is purely informational. I’m also learning and cannot recommend specific investments.

Sending Money Back Home

Most international students send money home regularly. Instead of traditional services like Western Union, wire transfer apps are far more efficient.

Best Options:

Wise (Highly recommended)
- Best exchange rates
- Transfers completed within minutes
Remitly
- Popular but slightly less favourable exchange rates
- Economy transfers take longer

In my experience, Wise consistently delivers more value after fees and exchange rates.

Final Thoughts

Managing finances as an international student may seem complicated at first, but with the right bank, smart credit card usage, and reliable apps, you can save money, earn rewards, and reduce stress.

Good financial habits won’t just help you survive in the U.S.—they’ll help you thrive.Once your visa is approved, the next major steps are finding accommodation in the U.S. and booking your travel—topics we’ll cover next.