As we all know, from March to November each year is the peak season for studying abroad. As the peak of studying abroad approaches, many parents are carefully preparing for their children before going abroad. Financial markets abroad have become increasingly spectacular. Last year, the number of Chinese students studying abroad reached 350,000, and the amount of overseas tourism spending reached more than 600 billion yuan. With the expansion of the market, many banks have entered the field. So, how to invest in personal funds when studying abroad? What are the key things to note when traveling abroad? What procedures are needed? What kind of currency should I bring when leaving the country? What are the precautions for immigration?
Reporter: In recent years, the number of students studying abroad has increased at a rate of nearly 20% each year. Studying abroad has become more and more popular, but many parents have said that the related issues of studying abroad are still incomplete. We all know that studying abroad is primarily money. Question, how should money be prepared? What is the difference between different countries?
Manager Zhang: Funding is a very important factor for studying abroad. You can prepare from three aspects: the amount of funds, the time for preparing funds, and the form of funds. The amount of funds must be determined according to different countries and specific schools. The amount must cover students studying abroad. The sum of living expenses and tuition fees for all school years. And because each country has different living costs, the requirements for the amount of funds are different. Generally, the United States requires 800 to 1.2 million yuan, 800,000 yuan. The cost of living in the UK is relatively low and the academic year is shorter, only 300,000 yuan. Just fine. Only by determining the destination country can you further determine the amount of funds that need to be prepared.
In addition, the amount of funding varies from country to country. The requirements are the most stringent. It takes more than a year to store funds, the United States requires six months, and the United Kingdom requires the shortest, 28 days is sufficient. The last is the fund deposit form. At present, all banks can issue deposit certificates for demand deposits, time deposits, government bonds, wealth management products, and fixed income wealth management products, but risk assets such as stocks and funds cannot be certified. Although there are many forms of issuing asset certificates, we still recommend the form of time deposits, because the proof of funds is very important for visa applications. It is often a pity that if the visa is rejected due to the security of the funds, it will affect the normal exit process. .
Reporter: When choosing a country, school and major, what kind of experience does Manager Zhang have and can I share with you?
Manager Zhang: In terms of majors, we choose majors based on the students' own academic performance and hobbies. The best country to choose is based on the amount of money the family can provide. At present, China Merchants Bank can provide study abroad assessments based on students' own hobbies and the specific circumstances of their families, and can also use this as a reference to select relevant countries and majors.
Reporter: After the international student has determined the school and the visa application has been successfully completed, what preparations are required for specific travel abroad?
Manager Zhang: We have several aspects regarding travel preparation: First, cash preparation is used in the travel process, but it is best to control it within 5,000 US dollars, because you need to go to the bank to issue a foreign currency carrying certificate; the other is Parents hold a dual currency international credit card for their children in advance. The supplementary card is used by the child to go abroad to use. This is not only convenient for controlling children ’s consumption abroad, but also for parents to repay domestically. As for large tuition and living expenses, we still remit money Go to offshore account.
Reporter: After going abroad, there will be a phenomenon that foreign students are not good at managing money. Sometimes, it may happen that the parent pays one year's living expenses to the child's account and the child spends half a year. So, how can we effectively manage children's expenses abroad and help them manage their finances?
Manager Zhang: In fact, this is also one of the issues that most parents pay close attention to. The most effective way to do this is through the form of a credit card supplementary card. Because the main cardholder of the credit card can check the consumption details of the auxiliary card at any time, and the most convenient point for our credit cards such as China Merchants Bank is that the limit of the subcard is flexibly controlled by the main cardholder, and this adjustment is also very convenient and quick. Cardholders can log in to online banking directly.
Reporter: In actual life, some of our parents face the situation of transferring a large amount of money overseas. We also know that the commonly used forms are bills of exchange and overseas remittances. Which of these two forms is more convenient and fast?
Manager Zhang: Actually, we actually recommend this form of overseas remittance because the bill of exchange is similar to a certificate of deposit. After the bank has issued the bill, it must be carried by the international student abroad. In the process, if you encounter a loss, you need to complete the formalities. Quite complicated, and most importantly, it affects normal travel. The form of overseas remittance is to make a payment to a designated overseas account through a bank in China. Generally, the payment can be received within two working days after the payment is made. This avoids the insecurity of carrying it and the time period is not long. The handling fee is also relatively cost-effective. At present, most of our customers also choose this form of overseas remittance.
Reporter: In addition to studying abroad, the current overseas travel fever is also unprecedentedly high. For most Chinese people, his overseas experience may be the first time in his life. For these netizens, what documents may be the first concern? And what should be paid attention to when carrying cash, swiping cards overseas? These are definitely not the same as the precautions for studying abroad.
Manager Zhang: Yes, it is not the same but there are similarities. For example, the amount of cash carried can still not exceed the equivalent of $ 5,000 in cash. Another issue that everyone is more concerned about is swiping cards overseas. I will also share with you about this issue. Generally, there are two types of clearing channels for swiping cards overseas. One is the clearing channel such as UnionPay.
The other is to use VISA and MASTERCARD for clearing without UnionPay. Unlike domestic consumption, when spending abroad, if the local settlement currency, the US dollar, is also the other currency of the national currency, there will be currency conversion problems. Because other foreign currencies consumed by dual currency credit cards will be converted into Renminbi or US dollars before they can be credited. If the card is swiped through a foreign card line such as VISA or MASTERCARD, the local foreign currency consumed will be converted into U.S. dollars, and a conversion fee of 1% to 2% will be charged at the same time. No exchange fee is charged. Therefore, it is best to use UnionPay for overseas consumption. China UnionPay has expanded credit card lines to 26 countries and regions including Hong Kong and Macau, Singapore, the United States, and France.
When studying abroad, parents hope that their children will be able to see the world abroad, receive a better education than in the country, and successfully set up a green card to become a returning overseas Chinese. But in fact, the cost of preparing to study abroad is not a small amount, nor is it affordable for every ordinary family to study abroad. How to take care of financial management and study abroad is a problem that parents and all friends who go abroad have to face.
Feature Production: Qi Xueli, Wang Yan
Technical Support: Zhou Xuanbo, Feng Zeli
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