As many families prepare for the new school – or University – term, we investigate the best ways to make currency transfers and generally manage the complexities of funding an overseas education.
Given that the new school term is just around the corner, it seems like a good time to discuss education.
There’s a lot to think about when it comes to starting the new school year, but things get more complicated when you or your children are going to be studying overseas.
One of the issues you might to need to get to grips with is making currency transfers in order to meet the costs associated with education.
So, sit down, get your exercise book out, and prepare to learn all about the exciting world of currency…
Funding the student lifestyle abroad
If you’re about to jet off to study abroad, there are likely to be a number of expenses that need to be taken into account.
The actual tuition fees may be the main one, but you’ll also need to think about accommodation, flights and living expenses – and of course funds for nights out and takeaways. You’ll also want to be able to go out and explore your new surroundings and local culture while abroad.
Thinking about money matters adds yet another consideration to an already long list when preparing to study abroad.
Funding your children’s overseas studies
Getting an education involves leaving home, if only for a few hours each day.
But where your five-year old comes back six hours later with a picture of you they made from pasta shells, your 20-year old is more likely to return after six months with a bag of laundry.
When you add an international element to education, things become more complicated. You may be moving abroad yourself or sending your child to an overseas boarding school and have term fees to pay in advance.
Meanwhile, if you’re living overseas while your offspring remains at home to study, you’ll still need to cover their upkeep costs.
The right – and wrong – ways of sending money overseas
When it comes to sending money abroad your options include putting a cheque in a bottle and throwing it into the sea, tying an I.O.U. to the leg of a carrier pigeon, or using a foreign exchange provider to transfer the money safely and simply into the destination bank account.
Of the options, the last is probably the most sensible.
Currency brokers offer you a fee-free transfer service and can actually make your money go further by getting you a better exchange rate.
Learning the value of money
It’s a funny phrase; ‘learning the value of money’. Anyone who has looked at a currency graph would know that the value of money changes on a second-by-second basis.
It’s the topsy-turvy nature of the currency markets that makes sending money overseas seem like such a complex process. Exchange rates can change by 5% or more over the course of a single month.
But there are ways you can protect yourself from currency volatility and time your transfer to maximise the amount of funds you receive.
Reputable currency brokers will be happy to discuss this with you and provide more information on how it all works. So, if you want to save money while benefitting from security and a personal service, it’s probably best to pick up the phone and have a chat with a currency broker for some initial advice.
Be one of the smart kids; wise up on transfer methods
A key advantage of using a currency broker is that they can offer you ways of transferring your money overseas that other providers may not be able to.
If you have several months before you need to pay fees and are worried about exchange rate movements, you may want to use a ‘forward contract’ to lock in a favourable exchange rate for up to two years. You can then buy foreign currency at the rate you saved, even if the market is much weaker.
You should also ask a broker to run you through ‘stop loss’ and ‘limit orders’, which prevent you from losing money while you wait for a better exchange rate to come along.
While this little lesson should have given you an overview of the world of currency, seek further tuition from the experts and come up with a gold star transfer plan for your requirements.
If you need to move money abroad and want to find out what your transfer could be worth, request a free currency quote.