You do not need to memorize 60 financial terms before your flight. You need to recognize about 20 of them — the ones that will actually come up in your first month, on forms you will be asked to sign, in conversations with your bank, and in advice from other students that assumes you already know what these words mean.
This guide covers exactly those terms, organized by when you will actually encounter them, with plain English explanations and why each one matters specifically to you as an incoming F-1 student.
Terms You Will See Before You Even Land
SSN (Social Security Number)
A nine-digit number issued by the US government that functions as a national identity number for tax and employment purposes. Most Americans receive one at birth. As an F-1 student, you can only get one if you have authorized employment — an on-campus job, CPT, or OPT. You do not need one to open a bank account or get many credit cards; banks and card issuers have alternative processes for international students without one, covered throughout this site.
ITIN (Individual Taxpayer Identification Number)
A nine-digit tax processing number issued by the IRS specifically for people who need to file US taxes but do not qualify for an SSN. Functions similarly to an SSN for banking and credit purposes in many cases. You apply for one using Form W-7, and the process takes 7 to 11 weeks — start it early if you anticipate needing it, since several credit cards and accounts work much better once you have one.
I-20
The document issued by your university certifying your enrollment in a SEVP-approved program, your F-1 visa eligibility, and your program dates. You need this physical document — the original, not a photocopy — for nearly every financial interaction in your first weeks: opening a bank account, applying for a credit card, and sometimes even setting up a phone plan.
Wire Transfer
A direct electronic transfer of money between two bank accounts, used for large amounts where speed and certainty matter more than cost. This is how most families send tuition or large sums to a US account, and how universities typically expect international tuition payments. Covered in full detail in our complete wire transfer guide.
Terms You Will Hear in Your First Week
Checking Account vs Savings Account
A checking account is for everyday spending — paying rent, buying groceries, using a debit card. A savings account is for money you are setting aside, and typically earns a small amount of interest. Most students open both: a checking account for daily life, and a savings account for the start of an emergency fund.
Routing Number
A nine-digit code that identifies your specific bank, used whenever someone needs to send you money via direct deposit or wire transfer. You will need to give this number, along with your account number, to your university for stipend deposits, to an employer for payroll, or to family members sending you money.
Direct Deposit
The electronic process of having your paycheck, stipend, or scholarship disbursement deposited directly into your bank account rather than receiving a physical check. If you have any kind of on-campus job or paid assistantship, your employer will ask for your routing and account number to set this up.
Overdraft
What happens when you spend more money than you have in your checking account, resulting in a negative balance — often accompanied by a fee from your bank. Several modern banks, including those covered in our online banking guide, waive overdraft fees entirely, which is one practical reason to choose them over a traditional bank account.
Terms That Determine Whether You Get a Credit Card
Credit Score (FICO Score)
A three-digit number between 300 and 850 that represents how reliable you are as a borrower, based on your payment history and account behavior. Lenders, landlords, and sometimes employers use this number to decide whether to approve you. You start with no score at all when you arrive — building one is covered in detail in our complete credit building guide.
Credit History
The record of your past credit accounts and how reliably you paid them — this is what generates your credit score. Your credit history from your home country does not transfer to the US system in any form, regardless of how strong it was. You are starting from zero in the US regardless of your financial history at home.
Hard Inquiry vs Soft Inquiry
A hard inquiry happens when you formally apply for credit and temporarily lowers your score slightly. A soft inquiry happens when you check your own score or someone runs a background check, and has zero effect on your score. Understanding this distinction prevents the common mistake of applying for multiple cards at once out of uncertainty about which will approve you.
APR (Annual Percentage Rate)
The yearly interest rate charged on any balance you carry on a credit card or loan, expressed as a percentage. If you pay your full credit card statement balance every month, the APR never actually applies to you — interest only accrues on a balance you carry past the due date. Always check a card’s APR before applying, even though paying in full each month means it should rarely matter in practice.
Credit Limit
The maximum amount you are allowed to charge on a credit card. Your credit utilization — the percentage of that limit you are actually using — directly affects your credit score, with lower utilization generally being better, covered in detail in our credit score guide.
Terms Related to Taxes — You Will Need These Even With No Income
Nonresident Alien (for tax purposes)
The tax classification that applies to most F-1 students for at least their first several years in the US — completely separate from your immigration status. This classification determines which tax forms you file and which tax rules apply to you, generally Form 1040-NR rather than the standard Form 1040 that US tax residents file.
Form 8843
A mandatory IRS form that nearly every F-1 student must file every year, regardless of whether they earned any income. It is not a tax return — it is a statement confirming your nonresident status. Covered completely, including line-by-line instructions, in our dedicated Form 8843 guide.
W-2 vs 1042-S
A W-2 is the standard form reporting wages from regular employment, issued by any employer to any employee in the US. A Form 1042-S is specific to nonresident aliens and reports income that may be subject to tax treaty benefits, such as scholarship stipends or wages exempted under your country’s specific treaty with the US. If you have on-campus income, you may receive one or both depending on your specific situation.
Tax Treaty
A formal agreement between the US and certain countries that reduces or eliminates US tax on specific types of income for residents of that country, including students. Whether your country has a relevant treaty, and what it covers, is explained in detail in our complete tax treaties guide.
Terms You Will Encounter When Sending or Receiving Money
Foreign Transaction Fee
A fee — typically around 3% — charged by your card issuer when you use a card in a foreign currency or with a non-US merchant. This affects both a home-country card used in the US and a US card used when traveling abroad. Several cards, covered in our dedicated guide, charge no foreign transaction fee at all.
Exchange Rate (and «Mid-Market Rate»)
The rate at which one currency converts to another. The mid-market rate is the actual, real exchange rate you see on Google — the rate banks and money transfer services often mark up significantly before giving you a worse rate. Services like Wise specifically advertise using the mid-market rate with a transparent, separate fee, rather than hiding their markup inside a worse exchange rate.
ACH Transfer
A standard electronic bank-to-bank transfer in the US, typically free or low-cost, taking one to three business days. Different from a wire transfer, which is faster and more expensive — covered in detail in our wire transfer guide, which also explains when each type is actually appropriate.
One Term Worth Understanding Even If You Never Use It
Money Market Account
A type of savings account, usually offering a slightly higher interest rate than a standard savings account, sometimes with check-writing privileges. Most F-1 students will never need one in their first years — a standard high-yield savings account, covered in our emergency fund guide, serves the same practical purpose more simply.
How to Use This List
You do not need to memorize all 20 terms before your flight. The practical approach: bookmark this page, and when you encounter an unfamiliar term during your first weeks — on a form, in a conversation with a bank representative, in an email from your university about your stipend — come back and look it up here rather than guessing or feeling embarrassed to ask.
Every term above links to a complete guide elsewhere on this site where the topic deserves more depth than a glossary entry can provide. This page is your starting point, not your only resource.
This article is for informational purposes only and is intended as a general reference. Specific terms, requirements, and processes may vary by institution.
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