Financial planning

Planning to pay for your child's university fees and living expenses? You're not alone. 75% of parents say they will pay for their children's living expenses so they can fully concentrate on their education. Of the 75%, 59% worry that they won't be able to support their children financially if they go overseas to study¹.

It's important to estimate the cost and plan early to limit financial strain. There are a few ways to prepare financially. But first, you need to figure out what your budget is and what are some of the things to consider.

• Expenses to consider
• How to budget
• Budgeting timeline
• Opening an overseas account

So, how do you estimate the cost of tuition fees abroad? Most universities post their tuition fees online. Cost calculators will help you estimate the cost for accommodation, living expenses and various financial aids. During the admission process, international students can apply for aid in the form of grants, scholarships or bursaries. There are even scholarships offered exclusively to women studying abroad. Get a professional education consultant to explain and help you navigate these options so you can make an informed decision.

The overall cost of studying overseas will depend on which university you go to and how many years you study. With some research, you can guesstimate costs and work towards a financial goal to finance your child's overseas education. These are some of the expenses to consider:

• Application fees
• Tuition fees and books
• Passport and visa-related costs
• Medical fees
• Insurance (including travel insurance)
• Travel costs (including international airfares) 
• Accommodation and utility costs
• Living expenses

Saving

The simplest way to save for your child's education is to place your funds diligently in a savings account with a flexible withdrawal period, to accrue interest. The sooner you start, the earlier you'll enjoy the returns.

Investments

If your child still has some years to go before starting school, consider investments which can give you higher potential returns, which suits your risk profile^*. Contact your Relationship Manager for more information on how to get started.

12 months before departure

• Continue to top up your savings and apply for funds such as scholarships and grants
• Meet with a study abroad adviser to ensure you are on track

9 months before departure

• Ensure your child's chosen course of study/programme fits your budget constraints

7 months before departure

• Ensure paperwork is in order and your application form is fully completed before the submission date
• Ensure your child's passport is valid, update it if it's going to expire

3 months before departure

• Once your child has secured a place at school in their chosen programme, start ticking items off your checklist - health and travel insurance, flights, immunisations and any outstanding fees

1 month before departure

• Ensure all payments and paperwork have been submitted
• Open a bank account for your child and deposit funds ahead of arrival
• Consider forms of credit such as student credit cards

It's important to start saving early. Long-term savings is a practical way to fund your child's overseas education. Open an HSBC Premier account to prepare for the future, leave your contact details and we'll contact you to get the process started.

New to HSBC Premier

To meet either one of the Premier criteria below:

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Existing to HSBC Premier

Ready to open an overseas account? Book an appointment and we'll guide you through the process.

Leave your details

For more information, call us on 1300 88 9393 (local) or +603 8321 5222 (overseas).

Important notes

¹The Value of Education The price of success.

²Total Relationship Balance (TRB) includes any: Deposits in Current Account/-i, Savings Account/-i, Time Deposits, Term Deposits-i, and/or Investments in Unit Trust funds/Shariah-compliant Unit Trust funds, Structured Investments/-i, Dual Currency Investments/-i and/or Direct Retail bond, and/or Cash value from Family Takaful/Life Insurance products with investment-linked and savings components.

³Account Fee waiver for the first 12 months from joining HSBC/HSBC Amanah Premier Mortgage. Starting from 13th month you are required to meet the primary eligibility criteria. 

⁴Minimum monthly salary of RM20,000 credited continuously into HSBC/HSBC Amanah Account/-i in Malaysia for the first 12 months from joining HSBC/HSBC Amanah Premier Payroll. Starting from 13th month you are required to meet the primary eligibility criteria. 

^*Investment involves risks. Past performance is no guide to future performance. Investors must refer to the respective fund's offering documents for further details of the fund and the risks involved.