What Canadian students and their families should know before studying abroad

So you’ve been accepted into your dream school in the U.S., what now? While you fantasize about your college journey, there are some things Canadian students should start considering before hitting the books. 

While things like time zones, new classes, friends, and even living situations come to mind, student finances are an important topic to get a handle on before making the trip down south. 

Before you even set foot on U.S. soil, here are some handy tips you may want to consider when it comes to your finances.

Opening a U.S. bank account

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According to Danielle DeMartin, regional advisor of RBC U.S. Cross Border Banking, one of the most important things a family can do before students leave is to open a joint U.S.-based chequing account — linked to your Canadian one.

Setting up your account ahead of time makes it easier to get help with things like buying groceries and household items when you arrive, accessing your money online or through an app, transferring funds, and setting up automatic payments for housing, your phone bill, and more.

The payoff? “This would give the student confidence to operate their day-to-day banking — debit and credit cards in hand before they leave,” says DeMartin. “Skip shopping around for a bank while away at school and avoid the stress of navigating unfamiliar banks and their confusing systems in a new country.”

Managing daily expenses 

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Monthly, automatic payments can be optimized for stress-free living. DeMartin highlights RBC’s premium chequing Debit Card’s easy-to-set-up automatic and manual payments each month in USD, so you can skip out on on-the-spot conversion rates and fees.

No wire transfers or cheques here; having a linked USD account makes it easier to pay tuition straight from your account. Parents can easily be added to an account, so sending money when you need it can be done in a matter of seconds.

Cross-border banking

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When it comes to cross-border banking, DeMartin says holding a specialty chequing account can be an easy solution for all financial needs. Many premium chequing accounts allow for unlimited debits, so students don’t have to fear being charged extra.

You may also want to consider applying for a U.S. currency credit card to make purchases in USD as well. DeMartin suggests a card that comes with purchase protection and insurance, eliminating the foreign transaction fee charged on Canadian credit cards — normally around 2.5 per cent. 

To put that into perspective, imagine using a standard Canadian credit card to pay for a hotel stay that totals $5,920 USD. You’ll end up paying foreign transaction fees of around $148, bringing the final cost to roughly $6,068.

But with a U.S. dollar credit card that doesn’t charge foreign transaction fees, you’d simply pay the original $5,920. This is example of how small percentage fees can quickly turn into real savings over time.

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Don’t start your American chapter without properly setting up your finances. It could cost you extra fees and rates if you don’t!

You’ve done all the hard work at school — now it’s time to prepare your finances.

Learn more about how RBC Bank can help Canadian families and students manage U.S. education expenses, and rest easy knowing you can have easier access to your money, as you do in Canada.