Some days we have genius ideas. This is where we tend to write them down.
Take note so you can feel as smart as us one day.
March 10, 2015
Figuring out the best way to send money to students abroad can be tough for a lot of families. Most just wind up going with the traditional method of using their personal bank to wire money overseas. Unfortunately this is rarely the cheapest way to send money internationally and could be costing you hundreds or even thousands of dollars annually.
Finding the right choice to send money to a student overseas depends on the amount you plan on transferring. Some foreign money transfer firms offer no fees when sending over a certain amount and others charge minimal fees on small amounts.
While it’s usually not a good idea to regularly send small amounts of money to a student overseas as you will be hit with numerous transfer fees, it’s just a reality of having a child living abroad. Whether your kid isn’t good at budgeting or they ran into a situation where they need a small amount of cash quickly, there are still a couple options to send money abroad cheaper than your personal bank and they’ll get your money there quicker to boot.
Paying $30 to $60 to your bank for transferring $500 to a student overseas seems pretty pricey; especially if you are doing it on a regular basis. If you did that twice a month, you would be losing 6% to 12% of your money, not even including the horrendous exchange rate you will most often get.
We recommend using a foreign exchange firm like Xoom instead. They only charge $4.99 for transfers under $1,000, offer competitive exchange rates, and the money is usually transferred within one day. We realize every situation is different depending on how often and where you will be sending money overseas. To find the best rate for your personal overseas currency transfer use our comparison tool for real time rates and fees.
If you have one of those rare college kids who is a good at budgeting and want to know the best way to save money when transferring larger amounts of money overseas, check out this article.