Finances

Banking & Budgeting

Overview

It is important to plan your finances carefully: 

• Employment & Income Restrictions: Most non-immigrant visa categories have strict work restrictions under U.S. regulations, making it challenging to earn extra income to cover expenses.
• Full Financial Preparation: Plan to cover all expenses independently, as funding opportunities after arrival are limited.
• Financial Aid & Loans: Generally unavailable for international students, except for some undergraduate and Wharton MBA students.

It is important to consider that federal, state, city, and/or social security taxes will be deducted from most US-source salaries, scholarships, and stipends:

• Tax Deductions: Typically range from 14% to 30% of total income, reducing your available earnings. Based on earnings, tax status, and eligibility for a tax treaty.
• Annual Tax Filing: Required for anyone with U.S.-source income; tax returns must be filed by April 15.
• Tax Refunds: If you overpay taxes, you may receive a refund after filing.
• For more information on how Penn payments to foreign nationals are taxed, please consult the Office of the Comptroller. Please also see the International Student/Employee Tax Guide.

Additional Considerations 

*Financial demands are typically highest at the beginning of the academic year because tuition, health insurance fees, and housing deposits are due at that time. 

• Tuition Payment: Full tuition payment is required unless prior arrangements are made with the Office of Student Financial Services. Payment plan options may be available for those who qualify.
  • Tuition fees will be handled by Penn immediately. 
• Additional Expenses: Be prepared for initial costs such as temporary housing, household essentials, cell phone setup, food, and books.
  • Be prepared to cover costs for food, housing, books, and supplies with your own funds.
• Budgeting Recommendation: It’s helpful to plan for extra expenses ranging from $2,000 to $5,000 to ensure a smooth transition to life at Penn.
  • Fees vary by school, and if not covered by your fellowship, you are expected to pay this expense yourself.
  • At Penn, if your fellowship or assistantship includes tuition, your first living allowance is typically disbursed at the end of your first month, so you should plan accordingly for initial expenses.

Currency Restrictions, Fund Transfers & Money Exchanges 

• Restrictions: Some countries limit the amount of money that can be taken abroad.
• Enrollment Confirmation: Certain countries may require proof of enrollment before allowing fund transfers for students.
• Plan Ahead: It is advisable to determine whether any documents are required from the University in order to authorize the transfer of funds before you depart.
• ISSS Support: In some cases, ISSS can provide documentation upon verification of full-time student status.

Money Exchange  

• Know Your Home Country’s Rules: Be aware of currency exchange regulations and how your home currency converts to U.S. dollars.
• Customs Declaration: If carrying more than $10,000 in cash or monetary instruments, you must declare it at U.S. Customs upon arrival.
• U.S. Coins & Values: Coins come in different sizes and values: penny (1¢), nickel (5¢), dime (10¢), quarter (25¢), and dollar (100¢).
• Paper Money: U.S. bills are green and uniform in size, with common denominations of $1, $5, $10, $20, $50, and $100.
• Bring Some U.S. Currency: Having a small amount of cash in coins and bills can be helpful for initial expenses like transportation and meals.
• Currency Exchange & ATMs: Major airports have banks and ATMs for exchanging money or withdrawing U.S. dollars upon arrival.

United States Banking Services 

U.S. banking connections can be established before one leave home. To transfer money to the U.S., you can instruct your home bank to issue a foreign draft to a U.S. bank in Philadelphia.  

• Local Banking is Preferred: Using a bank in Philadelphia is better than one in another U.S. city to avoid delays.
• Potential Processing Delays: Drafts between banks in different U.S. regions may take up to three weeks to clear, delaying access to funds.
  • To ensure timely access to money upon arrival, it’s best to avoid unnecessary banking delays.
• International Bank Options: Some U.S. banks have branches abroad, which may be useful if located near Philadelphia.
• Correspondent Banks: Most large U.S. banks have partnerships with foreign banks, making international transfers easier.
• Draft Transfers: Money can be transferred by obtaining a draft from your home bank and presenting it, along with identification, to a U.S. bank for credit in U.S. dollars.

Checking & Savings Accounts

We recommended all new students and scholars open an account at a local bank soon after arriving in Philadelphia.  

• Compare Your Options: Different banks have different fees for services like ATM withdrawals, checking accounts, and overdraft protection. Review the terms and conditions of each bank and account type before making a choice.
• Opening an Account: Typically requires two forms of ID, such as a passport and a Penn Card. Some banks may also require a Social Security Number.
  • Benefits of a Checking Account: Allows for secure and quick deposits of foreign checks and reduces the need to carry large amounts of cash.
• Transaction Records: Banks provide monthly and/or online statements to help you track your finances.
• Using Checks: Commonly used for paying rent, utilities, and other bills. Some retailers may accept checks with proper identification.
  • Proof of Payment: Cleared checks may be returned to you or made available online as scanned copies.
  • Writing Checks Responsibly: Writing a check without sufficient funds can result in bank fees, financial difficulties, and potential legal consequences.

Savings or investment accounts are used to hold money that won’t be used immediately:

• Taxable Interest: Some accounts earn interest, which may be subject to taxation.
• Withdrawal Rules: Certain savings or investment accounts may have penalties for early withdrawals, while others offer flexibility to transfer or withdraw funds without penalty.

*For more details, check with your bank to understand specific policies and requirements.

Automatic Teller Machines (ATM) 

• Basic banking, such as deposits, transfers and withdrawals, is available 24 hours a day at computerized banking machines (ATM or MAC machines) at most banks. These machines can be found throughout the city.  
• It is recommended to only use ATMs located in safe and secure places indoors and to avoid using them after dark. 
• Some banks charge a fee for each ATM transaction. 

Credit Cards

Credit cards are widely used in the U.S., but they can be difficult to obtain without an established credit history. Some students and scholars choose to apply for credit cards in their home countries before arriving in the U.S.

• Common Credit Cards: Major card types in the U.S. include Visa, Mastercard, American Express, and Discover.
• Acceptance Varies: Not all businesses accept every card, so it’s helpful to check before making a purchase.
• Building Credit: Store or gas station credit cards are often easier to obtain and can help establish your credit history.

One should use caution in using credit cards as a means of postponing payment for purchases:

• Interest Rates: Most credit cards charge interest, typically ranging from 12% to 22% per year. Managing payments on time can help avoid high fees.
• Lost or Stolen Cards: If your credit card is lost or stolen, report it to the police and notify your card issuer immediately to protect your account.

Expenses Often Overlooked 

• Overnight Lodging: Hotel rates in major cities can be quite high, so it’s helpful to plan ahead for accommodations.
• Tipping Customs: In restaurants and taxis, adding a 15% tip is a common practice.
• Winter Clothing: If you’re new to colder climates, budgeting over $200 for a warm coat and boots may be necessary.
• Tax Deductions on Stipends: Some assistantships and awards may have up to 30% withheld for federal and state taxes.

Household & Personal Expenses:

• Setting up cell phone service may involve one-time fees or deposits, which could be higher than ongoing monthly costs.
• Sales Tax on Purchases: Sales tax varies by state and can range from 1% to 8% (Philadelphia: 7%).
• Security Deposit for Housing: Many off-campus rentals require a security deposit and upfront rent, often totaling three months’ rent, typically paid by check or money order.
  • If renting an apartment, you will need to prepare essentials like linens, towels, and kitchen supplies.

Find Local Banks Near Penn 

There are a number of different banks on or near campus where you can open bank accounts to help make your financial life easier to manage. Here are some locations: 

• Citizens Bank: 134 South 34th Street 
• PNC Bank: 3535 Market Street, 200 S 40th Street 
• Santander Bank: 3802 Chestnut Street 
• Student Federal Credit Union at the University of Pennsylvania: 3401 Walnut Street 
• TD Bank: 3735 Walnut Street
• Wells Fargo: 343550 Market St
• Bank of America: 3925 Walnut Street