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Planning for My Future

Financial Considerations when Sending Your Kids to Study Abroad

CIMB ❘ 16 Aug 2023

4 min(s) read

An overseas education is a dream shared by many students, including a significant number of Malaysian undergraduates.

As a parent, you want to support your child's aspirations but don’t quite know where to begin.

From navigating remittance challenges and managing tuition fees to understanding insurance requirements, we are here to provide you with a guide to help you get started.

Know the Total Cost of Tuition Fees

We already know that a tertiary education does not come cheap. Add in the fluctuating exchange rate and you might find yourself having to pay more in Ringgit Malaysia at times.

One way to minimise this is by learning how to maximise savings with a foreign currency account. A foreign currency account is a banking account that allows you to make and receive money in foreign currencies.

With a foreign currency account, you can conveniently keep an eye on exchange rates and convert your money at a favourable rate, potentially saving on currency conversion fees.

It's a smart way to make the most of your remittance amounts and stretch your budget a little further.

You can start your transactions with CIMB’s Foreign Currency Account easily via CIMB Clicks.

ALSO READ: Remittance: Find The Best Ways To Send Money Overseas In Malaysia

Scholarships and Grants

Even if you’re planning to pay out of pocket for the whole duration, we suggest to keep a lookout on potential scholarships and grants for your kids.

Scholarships and grants can help to reduce the overall tuition cost – which means less financial stress on you. The Malaysia Scholarship website might be a helpful way to start. You can seek advice from the university or college on grants too.

Find Cheap Remittance

Tuition fees is only part of the costing, and you will most likely need to transfer money to your child once evey couple of months.

When it comes to international money transfer, being mindful of costing is crucial.

Here's a quick guide on how to send money to popular countries like the UK, Australia, the US, Ireland, Germany, Indonesia, and Singapore at affordable rates:

1. Research the most cost-effective options

Compare different remittance services and their fees for the specific countries you wish to send money.

Common remittance options include using a bank service (such as CIMB Clicks and the CIMB OCTO app), using a third-party money transfer app, or getting the assistance of money transfer services.

2. Consider transfer speed

Check the speed of each remittance service, as it may vary depending on the destination.

3. Explore CIMB’s SpeedSend features

SpeedSend instantly transfers money to countries like the UK and many other countries. This service is also available 24 hours via CIMB Clicks website and app. Find out more by visiting SpeedSend’s product page.

4. Keep an eye out for promotions

Sometimes, banks (like CIMB) will offer FX-related promotions that will provide you with cheaper, better rates to other countries.

Want to know more about our FX deals? Visit the "Latest Promotions" page on our website, or click on the deals featured under this article's "You May Also Like" section.

5. Try Out the remittance features on CIMB Clicks

Take advantage of the remittance services available on both the CIMB Clicks App and the OCTO app.

With the OCTO app, you can enjoy a seamless and simplified transfer experience that allows you to add beneficiaries as favourites to enable quicker transactions in the future.

Living and Travel Expenses

Studying abroad is an exciting time for your child, and we encourage you to plan and manage their living expenses together.

Understanding the cost of living in the destination country is crucial for budgeting and to ease your worries. To start, you can:

Gather information: On various aspects of cost such as accommodation, food, transportation and utilities via student forums, education counsellors, and alumni associations
Create a budget: Once you have the information you need, you can create a budget that’s suited for your child. If part-time work if needed, be sure to check if that’s allowed in the destination country.

Insurance is Important

When sending your child abroad for studies, it's crucial to consider insurance coverage for their well-being.

Good insurance coverage provides financial protection, access to quality healthcare, and peace of mind. It covers emergencies, routine check-ups, medications, and accidents, and offers travel assistance and personal liability protection.

Evaluate the existing coverage and the healthcare system in the destination country to determine if additional insurance is needed.

Setting aside extra funds for insurance ensures financial readiness for unexpected medical expenses or treatments not fully covered by primary insurance. With comprehensive insurance, your child can focus on their studies and have a safe and successful experience abroad.

Here’s a Little Recap

Sending your children abroad for studies may be financially daunting, but with proper planning and the right mindset, you can ensure a smooth and successful experience. By understanding tuition fees, exploring scholarships, managing remittance costs, budgeting for living expenses, and securing adequate insurance coverage, you can provide the necessary financial support for your child's overseas education. Remember, thorough research and open communication with your child are key to a financially prepared and worry-free journey.

This article is for informational purposes only and CIMB does not make any representation and warranty as to the accuracy, completeness and fairness of any information contained in this article. As this article is general in nature, it is not intended to address the circumstances of any particular individual or entity. You are advised to consult a financial advisor or investment professional before making any decisions based on the information contained in this article. CIMB assumes no liability for any consequences arising from your reliance on the information presented here.

#Financial Advice #Planning for My Family's Future

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Financial Considerations when Sending Your Kids to Study Abroad

Know the Total Cost of Tuition Fees

Scholarships and Grants

Find Cheap Remittance