Parents' Guide to Remitting Money for Studying Abroad: How to Transfer Funds Quickly and Economically for Your Child

Remitting money for studying abroad is a crucial issue for every family with an international student. Whether it is for paying tuition fees each semester or supporting monthly living expenses, parents are very concerned about how to ensure their child receives enough funds in their account on time through the most reasonable means.

During this process, parents often face various challenges: fluctuations in exchange rates can increase tuition costs, high bank fees can make each remittance more expensive, and delays in transfers may even affect the child’s regular studies and daily life.

In dealing with these issues, choosing the right remittance method, planning the remittance time wisely, and controlling exchange rates and fees are matters that parents need to consider carefully.

Common Remittance Methods and Choices for Studying Abroad

When it comes to the need for remitting money to their children studying abroad, parents have multiple options, each with its advantages and disadvantages. Below are several common remittance methods:

Bank Wire Transfer: Bank wire transfer is the most traditional method, with high security and suitability for large tuition payments. Through the SWIFT network, parents can transfer funds from a domestic bank to their child’s account in the study-abroad country. However, bank wire transfers usually have high fees and processing times of 3-5 business days, especially if intermediary banks are involved.

Third-Party Payment Platforms (e.g., Wise, PayPal): In recent years, third-party payment platforms have gained popularity due to their convenience and lower costs. For example, Wise (formerly TransferWise) offers close-to-market mid-rate exchange rates, which reduces fees, making it ideal for frequent small remittances, such as monthly living expenses. However, it is important to note that the time for funds to arrive may vary depending on the country and the bank.

Multi-Asset Wallet BiyaPay: BiyaPay provides services that allow parents to easily remit money to their child’s account. BiyaPay has obtained financial licenses in countries like the US, Canada, and New Zealand and can facilitate local transfers in most countries or regions around the world, with transfers arriving as quickly as in a few minutes. This method is particularly suitable for urgent fund needs, offering fast transfers, relatively low fees, support for multiple currencies (including fiat and digital currencies), and no limit on large transfers, making it very flexible.

International Remittance Card: An international remittance card is provided by banks specifically for international payments. Parents can deposit funds into the card, and students can directly withdraw cash or make purchases abroad. This method is convenient and suitable for supplementing living expenses and emergency support. However, fees and exchange rates may vary depending on the issuing bank.

How to Choose the Most Suitable Remittance Method

Faced with multiple options, parents may wonder which remittance method is most suitable for themselves and their children. Here are some key factors to help parents make a decision:

Choosing Based on Amount

Large Amounts (e.g., Tuition Fees): For large sums such as tuition fees, bank wire transfers and BiyaPay are suitable choices due to their high security and suitability for one-time large transfers. Especially for BiyaPay, there are no limits on the transfer amount, and fees are as low as 0.5%, making it more convenient.

Small Amounts (e.g., Living Expenses): For monthly living expenses, third-party payment platforms are more flexible. Although fees are relatively low, parents still need to monitor the number of transfers to avoid accumulating fees.

Choosing Based on Transfer Speed

Urgent Transfers: If the child urgently needs funds, faster transfer methods, such as multi-asset wallets or certain third-party payment platforms, can be used. These methods usually offer fast transfer speeds. For example, BiyaPay provides same-day remittance services, which is highly useful in emergencies.

Regular Payments: For non-urgent tuition payments, parents can use bank wire transfers one to two weeks in advance, avoiding any delays that could lead to late payment of tuition fees.

Fee Comparison

Fee Differences: Different banks and platforms charge different fees. Multi-asset wallets and third-party payment platforms generally have lower fees. For example, BiyaPay charges as little as 0.5%, which is particularly cost-effective for large transfers.

Exchange Rate Impact: Different platforms offer different exchange rates. Traditional banks often add markups, while platforms like Wise provide close-to-mid-market rates, saving on remittance costs. Parents can compare the exchange rates and fees of different methods to choose the most cost-effective option.

By comprehensively considering the remittance amount, transfer speed, and fee situation, parents can choose the most suitable remittance method, ensuring timely fund arrival while minimizing costs for an economical and worry-free experience.

Practical Tips for Saving on Remittance Fees and Reducing Exchange Rate Fluctuations

When remitting money to children, parents not only need to consider the time of arrival but also try to minimize the costs associated with fees and exchange rate fluctuations. Below are some practical tips to help parents save money:

Choose the Right Timing for Exchange Rates

Monitor Exchange Rate Fluctuations: Exchange rates are dynamic, especially for major currency pairs (e.g., domestic currency against USD). Fluctuations in exchange rates can affect the actual remittance cost. Parents can monitor exchange rate trends and choose to purchase foreign currency when rates are favorable to reduce additional losses.

Exchange Rate Alerts: Parents can use exchange rate alert tools provided by banks or payment platforms. Once the rate reaches a desirable level, they can exchange funds promptly. This method helps parents buy foreign currency at the best possible time, avoiding unnecessary extra costs.

Use Services That Lock Exchange Rates

Rate Locking Tools: Some banks and financial platforms offer rate-locking services, which allow parents to lock in a specific rate for a period. This is useful for those who do not want to be affected by exchange rate fluctuations, especially in times of exchange rate instability.

Split Transfers vs. One-Time Transfers

Split Living Expenses and Tuition Fees: For smaller amounts like living expenses, parents can choose to transfer monthly using third-party payment platforms (e.g., BiyaPay) with better exchange rates to reduce fees. For larger payments like tuition, a one-time transfer may help avoid the uncertainties of repeated exchange rate fluctuations.

Using these tips, parents can effectively save on remittance fees, reduce the impact of exchange rate fluctuations, and make the process of transferring money more economical and efficient.

Practical Remittance Time Planning

Planning the timing of remittances wisely is just as important for ensuring timely fund arrival and reducing remittance costs. Here are some suggestions on remittance time planning:

Avoid Peak Remittance Periods

Peak Tuition Payment Period: During peak tuition payment periods (usually one to two months before the start of each semester), banks may have a high volume of international transfers, which could lead to longer processing times. Parents can plan remittances in advance to avoid such peaks and ensure tuition payments arrive on time.

Arrange Transfers One to Two Weeks in Advance: Whether for tuition or living expenses, it is advisable to transfer at least one to two weeks in advance. This way, there is enough time to deal with any delays or uncontrollable factors.

Prepare for Tuition and Living Expenses in Advance

Advance Foreign Currency Purchases: Purchasing foreign currency in advance when the rates are favorable can lock in relatively low costs. Particularly for large expenses like tuition, buying currency in advance helps reduce overall costs. Parents can use a multi-asset wallet or a bank’s foreign exchange account to convert foreign currency in advance for tuition and other living expenses.

Plan for Monthly or Quarterly Living Expense Transfers: For living expenses, parents can create a monthly or quarterly remittance plan based on the child’s expenses abroad to avoid sudden, urgent remittances. Using a multi-asset wallet for living expenses ensures same-day transfers, especially suitable for emergencies.

Emergency Transfer Arrangements

Fast Transfers via Multi-Asset Wallet: In emergencies, such as when a child needs to pay for medical expenses or other unexpected costs, parents can use a tool like BiyaPay that supports local transfers in most countries to ensure fast arrival of funds. This is very useful in emergencies, minimizing waiting time and unnecessary trouble.

Reserve Emergency Funds: It is recommended that parents prepare some emergency funds for their child, which can be on an international remittance card, used for additional expenses in emergencies.

In planning remittances, being aware of exchange rates, choosing the right remittance timing, and selecting appropriate remittance channels can greatly reduce unnecessary costs, making the entire process of remitting money for studying abroad more economical and efficient. Ultimately, remitting money for studying abroad is not just about transferring funds; it is also about managing family resources wisely. Through the suggestions in this article, we hope parents can provide more solid financial support for their child’s life abroad, allowing them to focus on their studies and life without worries.