||Central Bank Of Barbados
Sending your child overseas to study can be an extremely stressful time. Compounding the anxiety you already feel about sending your teenager off to navigate the world on her own, you worry about whether she will have enough money to get settled in properly and to live comfortably, and get flustered at the thought that you might not complete all the running around you think it takes to get that sorted out before it is time for her to leave.
There’s no need to panic. Getting permission to get the money she needs as actually not that complicated; you just need to know how to navigate the process.
What Documentation Do I Need?
Unlike holiday travel, there is no pre-set limit for how much foreign currency you can purchase to cover educational expenses. Instead, the amount approved is based on the documentation you have. This means that you will need to provide an acceptance letter from the school or university and an estimate from it that shows the associated costs – tuition fees, books, and living expenses – as well as her student visa so your bank can determine how much foreign currency you will be allowed to buy.
Getting permission to purchase foreign currency to pay for schooling overseas does not generally require you to get a Central Bank Clearance Certificate, and the entire process is usually be handled by your commercial bank, so as a rule, the process is very streamlined. However, if your child will be living off-campus or somewhere that is not associated with the school she will be attending, you could be asked to come to the Central Bank to have that part of your application approved. If you are referred to the Central Bank, your application can be approved on the same day.
What About Occasional Expenses?
After your child has settled into school and to life away from home, she might occasionally find herself with unplanned for expenses or just need to top up on the money she uses for everyday living. You can plan in advance for this by also applying to the Central Bank to send periodic payments. When that application is approved you will be able to send her money monthly, quarterly, or at unspecified intervals, as long as the total you send does not go over the amount you stated on the application form. Approval to make periodic payments lasts for 12 months.
One final thing you should bear in mind. The Foreign Exchange Fee also applies when you buy foreign currency to cover educational expenses, so remember to include that 2 percent when you are calculating how much money you will buy.
Now that you know how what you need to do to get your child the money she will need while she’s studying abroad, you can get that handled quickly and then focus on enjoying the time you have with her before she goes.