In 2015, I had the incredible opportunity to move to Taiwan after being awarded the MOFA Taiwan Scholarship to pursue a bachelor’s degree. This prestigious, merit-based, fully funded scholarship, offered by the Taiwanese government to students from its allied countries, not only provided a generous stipend but also taught me the vital importance of financial discipline. It was a rewarding experience during which I got to learn a new language, explore new cultures, uncover my personal strengths, and develop essential life skills.
Many of us arrived in Taiwan fresh out of high school, stepping into adulthood and having to manage our own money for the first time. Managing our own money was a new challenge, and like most young adults, we had a lot to learn about making the most of it.
A Once-in-a-Lifetime Opportunity
Studying abroad opens doors you may not have even known existed. Beyond access to quality education, it provides a global network of connections. As a scholarship recipient, you have the chance to lay the foundation for a bright future. Not only can you pursue your academic goals, but you can also save, invest, and travel—turning this scholarship into a true stepping stone for greater opportunities.
If you come from an environment that fosters limiting beliefs, it could also be your chance to break free. As someone once said, “The only limits that exist are the ones in your own mind.” That said, it is an opportunity for you to expand your horizons, both academically and personally.
The First Year: Sometimes the Hardest
Beginnings are often challenging. Whether it’s adjusting to a new job, battling homesickness, adapting to a different culture, learning a new language, or facing financial difficulties, obstacles are inevitable. What will assure your success is discipline in everything, along with a strong support system. Discipline will help you persevere when your motivation fades.
Financial discipline is especially crucial. Even if you receive a stipend large enough to cover your expenses, poor money management can still land you in a difficult situation. It’s important to develop good money skills early on. However, even with good money skills, there may still be times when you need help. Therefore, it’s important to build a supportive network with your fellow scholarship recipients to navigate these challenges.
Another source of stress is finding ways to pay for university. The issue here isn’t a lack of income, but rather developing effective strategies to save money. Some programs allow tuition to be automatically deducted from your stipend, which is a great way to avoid the stress of saving up for large payments. I always recommend choosing this option when available. But what if your school requires you to pay upfront?
Financial Tips for Your First Year
To help you navigate your first year—especially as you prepare for university—here are some practical tips
- Create and Stick to a Budget: A clear budget will help you stay on track and avoid financial stress.
- Share Expenses Whenever Possible: In your first year, you’re likely surrounded by other scholarship recipients or students with similar financial goals. Take advantage of this and shop together, buy in bulk when possible and split the costs with friends to save money.
- Look for Free Application Options: When applying to universities, check if there’s a free application process. Many national universities used to offer free applications, and although this is changing, some still allow you to apply to multiple programs with one application fee. Take full advantage of this.
- Save Early: Make it a priority to save at least 10% of your monthly stipend in preparation for when you start university. Often, the system takes time to process payments for new students, and you might not receive funds in your first month. So, it’s important to have some savings to get you through.
- Save Strategically: Four or five times during the year, you’ll likely receive your full stipend. Aim to save 40-45% off of it toward your tuition and living expenses during your first month of university.
- Opt for Dorm Life: For your first two years, consider staying in dorms. Dorm rent is usually much lower than off-campus housing, significantly reducing your living expenses.
Flexibility of the Scholarship
One of the great benefits of the scholarship is that you have the freedom to attend any university and program you choose. If you opt for a public university, you’ll pay the same tuition as local students. However, private universities tend to have higher fees. In some cases, the program you’re interested in might be quite expensive.
I know of at least four students who enrolled in master’s programs where the tuition fees equaled three months’ worth of their stipends. Now, imagine having no other source of income—being in a program like this can put you in a very tough financial situation.
Precautions to Consider
Before committing to a program, reach out to students currently enrolled in your prospective program and inquire about the fees. This will give you a clearer understanding of whether the tuition is affordable on your scholarship alone. If your tuition and credit fees amount to around three months’ stipend, you’ll likely need additional support—either through a part-time job or financial help from your family.
If family support isn’t an option, it may be wise to consider a similar program that is more affordable. Ultimately, this is a personal decision that depends on your circumstances and priorities.
Once You Get Through Your First Year
Once you’ve made it through the first year and a half, you’re on your way to greater financial stability. Your toughest moments as a foreign student, especially being far from family, are likely behind you—at least financially—provided you maintain good financial habits.
From this point forward, you’ll have more flexibility for long-term planning, whether it’s saving, investing, or even taking a vacation. In fact, with careful planning, you can do all three. While not all students share the same financial responsibilities, with discipline, you can—and should—start laying the foundation for a fulfilling life.
Financial Discipline in a Nutshell
Here are some key points for maintaining financial discipline as a student:
- Keep a Budget to Manage Your Expenses
A budget is your financial roadmap. So, it’s always good to have one and update it regularly to reflect any changes in your income or spending habits. - Be Aware of Your Emotional Spending Patterns
Emotional spending can derail even the best financial plans. Recognize when you’re tempted to spend due to stress, boredom, or social pressure, and find healthier ways to cope. - Maintain an Emergency Fund
An emergency fund is crucial for financial security. When I was a student, my emergency fund wasn’t for typical situations like job loss or car repairs (I didn’t even own a car back then). Instead, within six months, I saved enough to cover the cost of a round trip home in case of a family emergency. Your emergency fund should reflect your personal needs—whether it’s for travel, unexpected medical costs, or other life events. Start small and build it over time. - Develop a Savings Habit
Make saving a non-negotiable part of your financial routine. Aim to save at least 10-20% of your income. If you’re also investing, save closer to 10% and allocate the rest to growing your investments. Whenever possible, save more than your set percentage to build a stronger financial cushion. - Prioritize Long-Term Goals
While it’s important to manage day-to-day expenses, don’t lose sight of your long-term goals. Whether it’s paying off student loans, investing for your future, or planning for a post-graduation life, staying focused on these goals will help you make better financial decisions in the present.
When Financial Discipline Pays Off
After graduating, I received another scholarship from the university to pursue my master’s. This time, the stipend couldn’t even cover my rent. Although I didn’t have to worry about tuition, I needed to work to maintain myself and prepare for tomorrow. That was during COVID, when the country went into a semi-lockdown, and opportunities became scarce. I managed to keep a stable situation despite the lockdown. It was the money management skills that I developed that helped me get by for nearly a year.
Financial discipline truly works, but you may not realize its importance until you find yourself in a tough situation. So, invest the time and effort now to create solid financial habits that will serve you well in times of uncertainty.
Note: This article is based on my personal experiences as a scholarship recipient. Scholarship conditions and benefits vary, and not all scholarships provide the same level of financial support or flexibility. The tips and advice shared here may not apply to all situations. So, if you’re reading this and you’re a recipient of a different scholarship, I encourage you to use these strategies only to the extent they apply to your circumstances.
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