Money in Australia

Money and Australia
As an international high school student, living independently for the first time can be challenging. Trying to balance your studies as well as attending to your financial needs can be overwhelming. However, if you do enough research and planning beforehand, you might just be able to avoid getting into this financial stress!

Expenses  
Your most significant financial burden will most likely be your accommodation costs. Therefore, it is recommended to research all available accommodation options (e.g. homestay or dorm). You might need to take into consideration the location, utilities, amenities and other living arrangements when choosing the best option for yourself. However, it is advised to go for an accommodation closer to your school.
On top of accommodation costs, you will also need to consider costs for things such as your phone, transportation, food and stationery. These costs may be dependant on individual stores nationwide. So for big items such as TVs and computers, it might be worth it to check out a few stores and compare the prices since it may just save you a few dollars!

Nevertheless, you can feel confident with the prices in Australia because the Australian Competition and Consumer Commission (ACCC) is there to protect you as a consumer, they do so by monitoring the costs of goods and services. Also, a 10 percent GST (Goods and Services Tax) is automatically added to most goods and services. Excluded from GST are fresh fruits, vegetables, meat, bread and dairy products.

Here is a list we have compiled to give you a rough idea of what you may expect to pay for everyday items in Australia (all priced in Australian dollars):
Bread: $3.50
Big Mac: $3.95
Milk (1L): $1.60

Rice (1kg): $1.60
Can of coke $2.20
Basic groceries: $30

Work and Income
As an international student visa holder, you are permitted to work up to 20 hours a week during study periods. However, it can be difficult to find part-time work and it's usually more difficult to find full-time work. To get started, surf the net and look in local newspapers for job openings. Congratulations if you manage to land a part-time job. However, you need to understand that you cannot expect to live off this income. Most importantly, you need to make sure that working will not interfere with your studies in any way. Talk to your teachers and student counsellors if you are unsure of your ability to balance both work and study.

Budgeting
Having a budget is important to avoid financial stress. Here are tips that you may find helpful:

• List and arrange direct debit for essential payments such as rent and phone bills. This minimises late payment possibilities, therefore minimising unnecessary fines and surcharges.
• Withdraw a fixed amount of cash every week and spend only that fixed amount on expenses such as food and transport (e.g. 120 spending money per week).
• Keep track of your account balance.
• Know the difference between needs and wants, and spend on the needs not wants. For example, you can spend money on food that you need, but not on a pair of new heels that you want.
• Use credit cards for emergencies only.
• Debit cards are recommended when shopping online. Unlike credit cards, it saves you from paying interest.
• Use less EFTPOS and withdraw cash from your banks' ATMs to minimise fees.
• Shop for second-hand goods at places such as the Salvation Army or weekend markets.
• Look for freebies and cheap stuff from free magazines. These magazines may be found in places like music stores, student centres and music shops.

 
Banking
 
It may be a challenge to find a bank suitable for you since there are so many banks out there! Visiting www.infochoice.com.au may help you make the right decision.
Once you have chosen a bank, your next step would be opening an account with that bank. Ask the bank of the exact documents required to open an account and make sure you have them all with you. It is usually enough to bring your passport, student visa and a letter written by your principal. However, your student ID card, your birth certificate and a document with your residential address may also be requested.
Once you have opened an account, you can begin to withdraw money and use your EFTPOS card. You can withdraw money from ATMs 24 hours a day, and your EFTPOS card can be used in most stores and supermarkets.

Credit cards
Most stores nationwide in Australia accept credit cards. You should have no problem using cards such as Visa, MasterCard, Bankcard, American Express.

Funds transfer
You can transfer money to Australia via bank drafts, telegraphic transfer or cheques. Bank drafts can take as long as 2 weeks to clear, cheques may take 5 days and telegraphic transfers can cost more but it is usually the fastest to clear.

Tipping
Tipping is not necessary. You can choose to tip up to 10 percent for good services received.

Insurance
As an international student, you are automatically covered by the Overseas Student Health Cover (OSHC). To maximise protection, you may choose to invest in additional insurances such as travel insurance, contents insurance or third party car insurance.