Money Matters

The exact process for opening an account will depend on the bank you select. However, these are the basic documents you may need to present:

• Photo identification
• Proof of address
• U.S. Social Security Number (if available) – The bank will ask you for an SSN and you should share the number if you have one. However, an SSN is typically not required to open a savings or checking account. Ask the bank for alternatives if you do not yet have an SSN.
• Money to deposit – You will need to have funds available to deposit into your new account. The funds could be in cash, check, or available by wire transfer. The minimum amount of money you need to deposit and maintain your account will depend on the bank and account type you choose.

Your bank will offer many different types of accounts, but the two basic account types used for saving and spending money in the U.S. are savings and checking accounts. At some point, you may be presented with the need for a credit account. However, know that an SSN is required to open a credit account and it is extremely important to understand the terms for repayment before opening one.

• Savings – Savings accounts safeguard your money for a prolonged period of time. There are typically limits on the number of withdrawals you can make from the account each month. Interest is paid on the account but generally at low rates. You may be able to earn a higher interest rate in a Money Market account or with a Certificate of Deposit but these accounts may require larger initial deposits and can restrict your access to the funds for longer periods of time.
• Checking – Checking accounts safeguard your money while allowing for frequent and easy access for everyday expenses like food, clothing, books, and supplies. Checking accounts are also commonly used as a place to deposit funds you may receive from earnings, scholarships, or money from home. Some banks may require you to maintain a minimum amount of money in your checking account or link it to a savings account to avoid an account maintenance fee. Additionally, you can be charged significant fees for spending more money than the current balance in your checking account. This is called “overdrawing” your account or “bouncing a check” if the payment was made by written check. Make sure to discuss account features that can protect you from overdraft fees when opening your account.
• Joint – If your spouse has joined you in the U.S., you may like to open a joint savings, checking, or credit account. A joint account means that both you and your spouse have access to the account and can make deposits and withdrawals. Discuss your options for joint accounts with your bank and consider whether sharing an account with your spouse makes sense for your situation.
• Credit – If you have a U.S. Social Security Number (SSN) your bank may offer you a credit card in addition to your savings and checking accounts. If you do not have an SSN, your bank may allow you to open a credit account with an Individual Tax Identification Number (ITIN) or offer you a secured credit account that requires a deposit. Credit accounts can be tempting, especially when they come with high spending limits or a 0% interest rate for the first year. However, please use caution when opening a credit account. Credit accounts are basically short-term loans from the bank. Any money you spend must be paid back in full according to the deadlines specified in your contract. If you do not pay the full amount back on time, you will be charged interest, which is typically very high for credit cards. If you miss a payment, you will be charged a fee. Credit cards can be convenient, and if managed properly, there can be benefits associated with having one. That said, many, many people in the U.S. go into significant debt due to credit card spending and that debt never goes away. If you decide to open a credit account, make sure you educate yourself first so that you can select the best account for you and manage it successfully.

• Learn how to manage a credit account with the University Bursar

How we pay for goods and services is rapidly evolving. Where cash and checks were once the standard, electronic payments are increasingly the norm.

• Cash – The use of cash or U.S. paper currency and coins is waning in popularity due to the widespread acceptance of debit and credit cards along with the increase in mobile payment methods. Additionally, the COVID-19 pandemic has pushed some stores to no longer accept cash for health and safety reasons. That said, some service providers may offer a discount if you pay in cash or require that you pay tips in cash only. If you want to carry and make payments in cash, it is a good idea to only carry the minimum amount and have a backup payment method available, if needed.
• Check – Checks were once commonly accepted for everyday expenses and regular payments for things like rent and utilities. Your bank may provide a supply of checks when you first open a checking account and you can order more through your bank if you run out. That said, many stores and service providers no longer accept checks, and if they do, they may require you to show an additional form of identification like a driver’s license or a passport. Many landlords prefer rent payments electronically by providing them with your checking account information. If you do find yourself in a situation where you need to write a check, make sure to fill it out properly so that the recipient can deposit the check successfully. Also, make sure that your account balance is sufficient to cover the amount of the check. If you write a check for more money than you have in your account, the check will “bounce” and you will be charged a fee and risk having restrictions placed on your account. Multiple bounced checks could negatively impact your credit score or lead to legal trouble.
• Debit card – Debit cards look like credit cards but are linked directly to your checking account. The money you spend using a debit card is immediately withdrawn from your account and, like a check, you will be charged fees if you try to spend more money than you have. Debit cards are widely accepted at stores, restaurants, and online. They are also used to withdraw cash from ATMs. That said, take care when using a debit card online, at gas stations, or at unbranded ATMs. These are locations where scammers have been known to steal information and your debit card numbers lead right to your money. Monitor your account regularly and notify your bank as soon as possible if you notice an unfamiliar debit card transaction.
• Credit card – Credit cards are widely used and accepted in the U.S. both at in-person vendors and online. There may be some items you cannot pay with a credit card, such as your rent, utilities, or smaller shops that only take cash. Credit cards may offer more perks and fraud protection than debit cards, but the risk of accumulating debt is real. If you use a credit card, monitor your account regularly and plan to pay off the entire balance each month.
• Mobile payment – Mobile payment is rapidly increasing in popularity, especially with retailers in urban areas like Chicago. Mobile payments are made through a portable electronic device such as your cell phone or tablet and the associated apps allow you to send money between friends and family from your designated checking or credit accounts. Popular apps include Apple Pay, Google Pay, PayPal, and Venmo but more options exist. Get to know the payment options where you frequently shop and the money-sharing apps used by your friend group.

• Review U.S. currency or "cash"
• Learn how to write a check
• Learn how to manage a credit card with the University Bursar

By establishing a budget for yourself, you learn exactly where you money goes and how much you need to meet expenses. Once you know that, you can more clearly see where saving might be possible.

• Determine how long your money needs to last – Will you be in the U.S. for a semester (5 months), an academic year (9 months), or a a full calendar year (12 months)? Make sure to include any time you plan to remain in the U.S. after completion of your studies or exchange program (i.e. your grace period).
• Add up your income – Add up all sources of income that you plan to use during your stay in the U.S. This might include savings, funds from family, employment income, or scholarships/grants. Be careful to only count confirmed income in this calculation. For example, you may hope to find an on-campus job but you should not rely on that money for your budget until you have received an actual job offer with defined payment terms. Also, consider taxes. Graduate assistantship waivers are considered taxable income in the U.S. Learn more.
• List out your expenses – Make a list of your fixed expenses such as housing, utilities, tuition and fee payments, insurance, phone bill, etc. These expenses are charged according to a regular schedule (monthly, by semester, or yearly) and typically do not vary greatly. Then, make a list of your variable expenses such as food, transportation, clothing, entertainment, etc. These are categories that you expect to spend money on each month but the amount spent could change depending on your need or season. You should also factor in planned travel. Do you want to visit other U.S. cities during your stay or do you plan to return home over school breaks?
• Compare your income to expenses – After adding everything up, analyze whether your confirmed income is sufficient to cover your planned expenses. If your income falls short of your expenses, you will need to make adjustments. You can cut back on your expenses by reducing your livings costs (e.g. finding a cheaper apartment), canceling subscription services, spending less on food or entertainment, etc. You can also seek out additional income. Secure more funding from family, apply for scholarships or find an on-campus job. Just remember that as a visa-holder in the U.S., all work must comply with the employment regulations of your particular status.
• Update your budget and consider other tools – Your budget is a living document and it will need to change as your circumstances change. It is a good idea to frequently review your budget to make sure that your income continues to meet your expenses. It is better to become aware of a budget shortfall prior to incurring an expense that you are unable to pay. There are also many helpful budgeting tools and resources available online. Consider using a budgeting app to keep your budget organized and on track.

• Learn how to budget with the University Bursar

If you decide to open a credit account, it is extremely important that you handle it with care. There are real benefits associated with using a credit card account, which can include cash back on spending, travel points, fraud protection, and the opportunity to develop a credit history in the U.S. However, the risk of accumulating debt, which never goes away, is real. Here are some tips to help you utilize a credit account wisely.

• Know the terms of your account well – Compare cards before opening an account to make sure you pick the best card for your situation and goals. Read the agreement carefully so that you know exactly when payment is due, the fee for late payment, and the interest rate charged for carrying a balance. Put notifications on your calendar to remind you when payment is due, especially if you have an introductory period where no payment is due for a few weeks or months.
• Only use the card for expenses you know you can pay back – Essentially, treat your credit card like a debit card. Only use it to make purchases that you know you can pay for with money already in your checking account.
• Make it your practice to pay off the balance each month – The credit card company will suggest that you make a minimum payment each month to avoid a late payment fee. However, if you only make the minimum payment, you will be charged interest on the remaining amount which carries over to the next month. The balance does not go away! This is where people often get into trouble and end up accumulating credit card debt that takes them years to pay off. Make it your practice to pay off the entire balance each month or you can pay the balance weekly if that works better for you (check that multiple payments each month are ok for your account).
• Monitor your account for fraudulent charges – Review your account online often so that you can identify any fraudulent or incorrect charges quickly and report them to the credit card company right away.
• Run your free credit report once a year – The U.S. Federal Trade Commission (FTC) outlines what a credit report is, which companies maintain your credit history, and how you can request a free credit report each year. If you find errors on your credit report, you will want to correct those as soon as possible.

• Learn how to manage a credit account with the University Bursar
• Get your credit report with the FTC

The Office of the Registrar handles official University records, including current rates of student tuition and fees and the refund and fee schedule for dropping a class or withdrawing from the University. Please remember to connect with an OIS advisor prior to dropping a class that would take you below full-time or fully withdrawing from the University. Failure to maintain full-time enrollment is a violation of status which can have a significant negative impact on your ability to continue your studies or remain in the U.S.

• View Office of the Registrar financial matters

The University Bursar serves the entire University of Illinois system including students at UIC, UIUC, and UIS. This office manages your student account and can help you understand when payments are due and your options for payment. View their information on international payments and payment plans. Their page on sponsor billing is important for international students whose tuition and fees are paid by a sponsoring organization such as a home country government.

• Visit the University Bursar

The Student Money Management Center (SMMC) is a division of the University Bursar that aims to empower students to make positive behavioral changes associated with their finances. The SMMC has developed many educational tools, including blog posts, online courses, and videos, that can help you better understand and take control of your financial life as a student in the U.S.

• Explore SMMC educational resources

Many UIC students will work with Student Financial Aid and Scholarships to help them navigate funding for their education. However, it is important to understand that many of the programs promoted by Student Financial Aid and Scholarships require that the student or family member be a U.S. citizen or resident and eligible to complete the Federal Application for Student Financial Aid (FAFSA.) F-1 and J-1 international students are not eligible to complete the FAFSA or apply for U.S. federal education grants or loans.

The Office of Scholarships assists current undergraduate and professional students seeking campus and external scholarship opportunities.

The Graduate College provides an overview to funding and awards for students pursuing a graduate degree at UIC.

The Office of International Services maintains a growing list of scholarships and awards for international students, including the Laurette Kirstein Scholarship for International Students.