Your Child’s First Budget Abroad: How to Lend a Hand Without Taking Over

So, your child has grown and is old enough to fly the coop. Parents equally dread and impatiently await this very day, a complex and bittersweet moment that acknowledges the sheer time and effort invested in raising their special someone and the heartbreak that comes with seeing it draw to a close.

It’s difficult enough packing your adult child up and sending them off to their university halls or first flat-share, but it’s all the harder when they’ve got their heart set on something both traditional and highly risky: spending solo time abroad. Whether they’re going abroad for a gap year or as an international student, there’s a great deal of growing up they need to do in an extremely short period of time. As a parent, money is naturally the first and biggest worry.

So what can you do to help them on their way without overparenting?

Encourage Them to Track Their Expenses

As parents, it is incumbent on you to instil good ‘money sense’ into your children – something you’ve likely had a handle on since their early years. Now, though, is the time to hammer every point home, and especially so with respect to tracking their expenditure.

Drill it into them that they should be writing down every expense, at least for the first few months of their travels. Thankfully, we live in a smart world now, and they can utilise any number of clever apps or spreadsheets to gain a clear view of exactly where their money is going – and hence, identify any spending problem areas early.

Help Them Set Up a Realistic Monthly Budget

Instilling this habit early puts you in a far better position to give them advice on budgeting. They’ll know exactly how much money they have to play with, whether stipends from the Bank of Mum and Dad or long-saved funds expressly for travel. Use your own household budgeting experience to help them estimate their fixed costs, such as food, accommodation, and travel, and ensure they leave some space for entertainment and emergencies.

Now, young adults are not the most restrained of people, so you need to make sure you’re not being too tight, nor getting too close to their maximum possible monthly expenditure. A realistic budget makes it easier for them to stick to their plan and not feel restricted, while also leaving plenty of wiggle room.

Talk About Setting Up an Emergency Fund

That wiggle room is absolutely crucial for unexpected events, emergencies, and accidents. Your child could experience a medical emergency, could be evicted from their accommodation, could be robbed in broad daylight and left without their bank card to make essential payments. Any one of these things could be disastrous, which is why you need to encourage your child to set aside a small amount of money each month.

Even a small cushion can significantly relieve stress. To alleviate any stress on your end, you could set up an online money transfer to enable you to send the correct currency in the event of the worst-case scenario. Don’t, however, tell them! Otherwise, they might lean on you instead of their own financial independence.

Share Tips for Smart Food Shopping and Meal Planning

Finally, little household tips go a long way wherever you live. Even just showing them some basic cooking and meal planning tips could save them hundreds in the long run!