One of the biggest challenges for foreign students coming to study in Turkey is having to manage their own money for the first time. When I first arrived, it took me weeks to understand what was expensive and what was cheap. That’s why financial literacy is a must for being a student abroad.
If you learn to budget, avoid unnecessary expenses and save, you will live more comfortably in Turkey and reduce your stress. In this guide, we cover a wide range of topics, from budget management to bank selection, from ways to save to debt control.
What is Financial Literacy and Why Is It Important?
Fundamentals of Financial Literacy for Young People
Financial literacy is knowing how to manage your income, plan your spending and save money when needed. It’s not just about counting money; it’s about conscious spending, knowing what to look for when using a credit card, etc.
Especially for college-age youth, this knowledge can make the difference between living a debt-free life in the future and drowning in credit card debt.
Importance for International Students Studying in Turkey
Financial awareness becomes even more important when living abroad. In Turkey, living in Turkish Lira and earning an income in foreign currency can lead to unbalanced spending. Speaking for myself, in the first few months, I didn’t realize how out of control my spending was getting when I thought in USD terms, with the phone line, dormitory payment and food.
It is also important to factor in mandatory expenses such as Student Health Insurance in Turkey: Options and Scopes also need to take into account mandatory expenditures. Such fixed costs require planning.
Budgeting While Living in Turkey: How to Manage Your Spending
The first step is to determine your fixed income. How much money comes from your parents or scholarships? Then write down fixed expenses: rent, health insurance, transportation. The rest should be allocated to discretionary spending.
An Excel file or a free mobile app (such as “Wallet” or “Money Manager”) can be very useful for this. At the end of each month, checking “How much did I spend? How much did it increase?” also strengthens the habit of financial literacy.
Banking and Money Transfer Transactions for Students in Turkey
How to Open a Bank Account and Which Documents are Required?
International students usually need the following documents when opening a bank account in Turkey:
- Passport (or residence permit)
- Student certificate
- Certificate of residence address (can be a dormitory contract)
Public banks such as Ziraat Bank and Vakıfbank generally make transactions easier. However, English support is also available at private banks.
For more details, see our guide: Opening a Bank Account for Students in Turkey
Money Transfer, Foreign Exchange and ATM Usage
International money transfers are possible with applications such as Western Union or Wise. However, a transaction fee may be charged for transfers from within the bank. When withdrawing money from exchange offices or ATMs, check the exchange rate differences carefully.
Credit Card, Debt Management and Spending Awareness
Is a Credit Card Given To a Student in Turkey?
The most important criterion when applying for a credit card is the declaration of regular income. Most banks offer credit cards to students, albeit with low limits. Limits usually start between 100-300 USD.
For some students, these cards can be a savior. But remember, financial literacy also requires knowing how to manage debt. You should use the card for controlled shopping, not just in “no cash” moments.
What Are Interest Rates, Minimum Payment and Credit Rating?
If you do not make the minimum payment on your credit card, interest will accrue. The annual credit card interest rate in Turkey is around 30%. This means that a 100 USD debt can increase to 120-130 USD in a few months.
There is also a credit rating system in Turkey. Delayed payments can put you in a difficult situation in other banking transactions in the future. So think twice before spending, don’t miss payment dates.
Savings, Discounts and Economic Life Tips for Students
Student Discounts and Cards in Turkey
Turkey offers many discounts to students. From museum entrances to public transportation, cinemas to cafes, many places offer discounts of 20% to 50%.
Istanbulkart, ANKARAKART, or a student ID issued by the university may be enough to get these discounts. Serious savings can be achieved especially in transportation thanks to these cards.
You can also find details on which activities are affordable in our article Costs of Entertainment and Social Activities in Turkey.
Free and Low-Cost Social Activities
Cultural events, concerts and workshops organized by municipalities, universities or NGOs are often free of charge.
Following the weekly calendar of events can be very useful in this regard. The opportunities, especially in big cities, are surprisingly plentiful.
Improve Your Financial Literacy, Invest in Your Future!
Financial literacy applies not only to big budgets, but also to everyday spending. Going grocery shopping with a list, following campaigns, choosing long-lasting products instead of disposable ones are all part of this habit.
Applying Financial Literacy Skills in Daily Life
Review your spending at the end of each month. This is the first step to gaining the freedom to invest in the future.
Being a student abroad requires financial responsibility in addition to adapting to a new culture. Financial literacy makes your life in Turkey easier, freer and less stressful. Remember, a well-managed budget will set you up for a lifetime of success, not just at the end of the month.