Money

Tag: exchange

Hope this helps anyone worried about the financial side of going on exchange. This article replaces my budget article from August which I’ve come to realise doesn’t even add up properly.

Think of every possible expense you might have. Add them together. Now double it. That’s your budget.

I’ve heard this advice a couple of times in the last year. Fortunately, it isn’t true. I roughly guessed AUD 8,000-10,000 before exchange, and I was fortunately on target.

If you’re Australian, you should apply for an OS-HELP loan. There is no real interest charged, similar to the HECS-HELP loan. It’s a no-brainer. I borrowed $7,635, the maximum loan for Asia ($6,362 for everywhere else), so I don’t have to draw much from savings.

Scholarships shouldn’t make the difference between applying and not applying for exchange, but it might interest you to know that from what I understand, scholarships to Asia were easily obtainable.

I decided against getting insurance overseas for 3 reasons. Firstly, my home university already provides insurance. Secondly, Hong Kong student visa holders can access discounted public health services. Thirdly, CUHK’s University Health Service prices are really cheap, lower than the excess you would pay with insurance.

I got RMB at 4.9/AUD in May. It’s 4.7/AUD in mid-December, down over 4%. I got HKD at 1.2/RMB in September. Since the HKD is pegged to the USD, and the RMB is effectively pegged to the USD (though it has depreciated this year), this rate doesn’t fluctuate as much.

So AUD:RMB:HKD is 1:4.9:5.88.

Pre-exchange

Total: AUD 1,764

Travel

Total: RMB 16,869

Exchange

Total: HKD 23,568

In summation

I spent roughly what I thought I would, under AUD 10,000, discrediting the ‘double your budget’ advice. But I must disclose I’ve always been a thrifty person. Also, I didn’t go out often to eat at expensive restaurants (primarily because I liked the convenience of the canteen), only ever walked by LKF during the day, and although I travelled more than I originally planned to, probably still less than most people.

About a month into exchange, I largely stopped worrying about money since it became very clear to me that there was no way I would go significantly over budget. Hong Kong is extremely affordable as a student.

If you’re thinking about going too, there’s no need to worry either.

  1. I got a 1 year visa for personal reasons, though a 6 month visa is otherwise enough, AUD 159. Note the visa expiry date counts down from the date they process it, not your first/intended entry. ↩

  2. Buy return, since Cathay Pacific allows for free rebookings. Otherwise you will pay dearly. Seriously. I know friends who paid more for their one-way ticket home than I did two-way. ↩

  3. I stayed with a family friend, so I did not have to pay for accommodation in Beijing. ↩

  4. I got an iPhone here too, but it seems unfair to include it. ↩

  5. Hostel fees are not due until at least the third or fourth week, so don’t panic like I did! ↩

  6. Don’t freak out about the cost of living in Hong Kong during your first month, because a lot of it is start up costs, such as the ‘mandatory’ trip to Ikea to get bedding and everything. ↩

  7. I opened an account with Bank of East Asia. After O-Week, when you move into your permanent hostel, you can ask them to print out a proof of residence letter. Using that, my passport, student ID, driver’s license from home and a HKD 500 initial deposit, I was able to open an account and collect my debit card a few days later. After money was remitted into my account, I was able to pay my hostel fees via online banking. Due to a student promotion, I got HKD 100 in Häagen-Dazs vouchers and HKD 20 in McDonald’s vouchers. ↩