Big Dreams, Bigger Bills: Managing the Cost of Living During Your MiM

Let’s face it — pursuing a masters in management (MiM) or any business-related degree is a big investment. Not only do you have tuition fees to consider, but the cost of living in some of the world’s top cities for business schools can hit hard. 

As much as it’s exciting to study in places like London, Paris, New York or Singapore, these global hubs are also notorious for their sky-high accommodation costs. So how are students coping with this financial squeeze?

High Housing Costs in Large Cities

Housing has become one of the most significant concerns for business school students. For instance, if you’re heading to London, brace yourself — monthly rent for a modest one-bedroom apartment could easily set you back £1,500 ($1,956) or more. Paris? Expect €1,200–€1,500 ($1,300 - $1,625) a month, depending on the neighborhood. 

In places like New York, that number could climb even higher. And let’s not forget about other living expenses like transportation, food and healthcare. 

Many students report that rent and living expenses are rivaling the cost of the degree itself. 

“Besides the tuition fees, usually the biggest expenses business school students are facing in high-cost cities are accommodation costs. It is challenging for students to find affordable accommodation close to campus in these cities,” says Lisa Ronneburger, director of student and alumni affairs at the Frankfurt School of Finance and Management.

She adds that Frankfurt is relatively more affordable than major cities like London or Paris.

One of the most popular strategies to decrease costs is sharing accommodation. Splitting rent with roommates can make a huge difference. In cities like London or New York, opting for a shared apartment or student housing can cut your accommodation costs by half or more. Plus, living with other students can also help build a support network, which is a nice bonus when you’re navigating a new city and academic pressures.

“The cost of accommodation in a global city like London can vary hugely,” says Alexandra Barnett, recruitment and admissions director at London Business School. 

“To help offset this expense, many of our students choose to live with classmates,” she adds. “The experience often leads to lifelong friendships and students describing it as a defining part of their time in London.”

School Resources for Finding More Affordable Accommodation

Many business schools offer their own housing options, which can be a more affordable choice. While university housing may not always be located in the heart of the city, the costs tend to be lower than private rentals. 

Business schools in cities like Barcelona or Berlin often have partnerships with local housing agencies or even provide subsidized dorms. In 2019, for example, the Frankfurt School sold a property next to its campus to a real estate developer to build 1,100 new student apartments. 

If you’re lucky enough to snag one of these spots, it’s a great way to manage your finances. 

The rising costs of business education have also pushed many students to lean more on financial aid, scholarships and loans. Many business schools offer targeted scholarships for international students or specific regions, which can significantly ease the burden. 

“We offer bursaries in support of students who face financial challenges,” says Barnett at London Business School (LBS). “The school also has a modest budget for hardship funds, for students who might face unexpected financial challenges.”

However, LBS actively encourages students to fully consider if they have the funding in place for the entirety of their degree program. 

“Business education is a lifelong investment, and we advise students to spend as long on planning their finances as they do in applying for their degree,” Barnett says. 

Loans remain a go-to solution for many students. While European students might have access to affordable government-backed loans, international students often rely on private lenders or specific student loan programs like Prodigy Finance. Interest rates and repayment terms vary, but many students find loans a necessary way to cover not only tuition but living costs as well.

Working to Help Fund Costs

Many students are also turning to part-time jobs or freelancing to make extra cash. For international students, working while studying can be tricky due to visa regulations, but many countries (like the UK and France) allow part-time work for students. 

“Students often take part-time jobs to supplement their expenses,” says Ronneburger at the Frankfurt School. From tutoring and consulting to digital freelancing, students are leveraging their skills to bring in some additional income. 

As basic as it sounds, budgeting is a vital skill for business students learning to manage both their personal and academic lives.

Whether it’s cooking at home instead of eating out, using public transport, or taking advantage of student benefits for everything from gym memberships to cultural activities, small savings add up quickly.

“For full-time students, it will come as no surprise that renting an apartment, in addition to food and transport, are the main cost drivers in high-cost cities,” says Tino Elgner, director of masters programs at ESMT in Berlin. 

“The additional monetary investment required to study in such cities might potentially offset some of the financial aid received from the business schools to support students with their tuition fees,” he warns.

A key strategy is applying early to a business school, giving students time to explore housing options and avoid suboptimal choices, he adds. “Students often use school resources, such as databases of previous landlords or community platforms, to find suitable accommodations.”

While the cost of living and studying abroad can be daunting, many students view it as a necessary step toward long-term career growth. The return on investment (ROI) for a MiM degree remains strong. 

Top business schools offer access to employers, strong networks and job placement services that often lead to well-paid jobs shortly after, or even before, graduation. 

That said, it’s not just about choosing the best school for your academic growth, but also selecting a city where you can live comfortably without draining your bank account.