Studying abroad is on the rise as it offers several benefits for young adults that go far beyond the classroom. A recent study by UNESCO confirms that 6.39 million students studied abroad in 2021, up from 2.2 million in 2001. Whether they’re participating in a semester exchange experience, enrolling in an undergraduate program at an Ivy League school or pursuing a graduate degree outside of Canada, studying abroad provides students with a unique opportunity for personal growth and cultural immersion. It also requires financial planning and preparation to help make it happen. Here are three wealth planning considerations if your children decide to study abroad.

Find the right home away from home

Once the student accepts an offer, it’s time to find the most suitable housing arrangement. Whether the student wants to live on campus or off campus, if you’ll be providing financial support for ongoing rental or residence payments, we’ll need to plan for the ongoing expense in a foreign currency.

If on-campus housing isn’t available, you may want to purchase a foreign property while the young adult in your life is studying abroad. Purchasing a foreign property gives you the ability to potentially earn equity, rental income and further diversify your assets. Owning foreign property comes with additional financial considerations such as property insurance and also likely has tax implications to consider and plan for.

Managing cash flow while studying abroad

It’s important to consider how you’ll provide financial support for your children studying abroad and factor that into your cash flow needs—as well as theirs. You’ll likely want to set up a foreign bank account in the country they’re studying in to help manage their money in the local foreign currency.

Securing their safety net

Anytime Canadians travel or study abroad, it’s important to consider personal security and protection. Learn where the Canadian embassy is and have the student register with the embassy so they can be notified in case of any local security issues. It’s also critical for your student to purchase travel insurance for additional coverage in case of unexpected health needs.

Setting up the young adults in your life for success is rewarding—and it requires financial planning. Proactively planning for the student to be away for a prolonged period of time can help ensure their financial success and your comfort knowing they’re taken care of.