Financial Considerations when Sending Your Kids to Study Abroad

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.

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. 

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:

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.  

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.

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.