Studying abroad is a great opportunity for your child, but there’s a lot of preparation that goes into making the experience successful. Families often focus so much on flights, housing, paperwork, and picking courses that financially prep for studying abroad gets pushed aside. A local currency exchange can help families handle several important money-related tasks before departure.
A little planning before departure can help students avoid stress, overspending, and unexpected fees once they arrive. Here are a few smart money management tips to discuss before your child leaves to get them ready for their big adventure.
Create a Realistic Budget Before Departure
Studying abroad is an exciting opportunity, but it’s important to prepare your child for the financial decisions they’ll face. Talk to them about their monthly budget for essentials like food and public transit versus miscellaneous spending like weekend trips and eating at restaurants. Make sure they know how much cash they should carry at any given time in case of an emergency. The goal is to help your child manage their money week-by-week so they can still enjoy the experience without burning through their budget too quickly.
It helps to research local costs before your child leaves. You’ll both be able to get an idea of how expensive restaurants, museums, train tickets, and grocery stores are. You can also research what kind of places have student discounts that can make a big difference. Costs like this vary by country, so make sure you have realistic expectations of how much your child can afford to do.
Prepare the Right Mix of Payment Options
Most students end up relying on a mix of cash and cards while they’re abroad.
From the moment they land at their destination, having cash on hand is important. Relying on airport tourist kiosks to exchange money means settling for high exchange rates. Many families stop at a foreign currency exchange like CFSC well in advance before departure so students already have local currency when they arrive.
Students shouldn’t carry too much cash on hand at any given time, but many choose to bring around $200 of local currency on their first day in case they need cash for food, transit, or emergencies during those first few days.
Many students will also bring a debit or credit card when they travel abroad. Don’t forget to notify your bank before your child leaves so international purchases don’t get flagged as suspicious activity. In the months leading up to the semester, it helps to research international transaction fees on your child’s current card. If the fees are high, it could be worth it to find a card with better international benefits. Also make sure your child understands ATM withdrawal fees ahead of time so they’re not surprised every time they take out cash abroad.
Have a Plan for Emergencies and Ongoing Support
It’s completely normal to worry about your child’s financial choices when they’re living on another continent. Even if your child is good with money, they might experience a financial emergency, like getting pickpocketed and having to acquire new cards and cash as soon as possible. Or they may run into an unexpected medical expense while they’re overseas.
Before your student leaves to study abroad, set up a small backup fund to prepare for an emergency situation. Most parents won’t need to use this money, but it gives them a sense of comfort knowing they have a plan in place in case an emergency happens.
Parents can also use local currency exchange services like CFSC to wire money abroad if their child needs financial help while away. Most CFSC locations are open late night and on weekends to be accessible almost anytime to help you send money. Plus, CFSC Customer Service Reps are available in store to help make the process smooth and easy for you. This can make things feel a little less stressful if something unexpected happens overseas.
A Smoother Start to Studying Abroad
Before your child heads overseas this fall, make sure they’re financially prepared for the journey ahead. From foreign currency exchange to money transfer services, CFSC can help families handle important financial tasks before departure. Before your child leaves this fall, stop by your local CFSC to take care of important financial tasks before departure.