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Providing funds for a teenager overseas
Posted: Sun Mar 20, 2022 11:43 pm
by beanhead
Our eldest child (teenager) is going away for a year.
Any thoughts on the best way to provide spending money?
Looks like our child will not be eligible for a bank account, so I was thinking of a pre-paid card.
If a domestic flight is needed during the year, a credit card may also be needed I guess.
If anyone has previous experience or good advice, please share. Thanks.
Re: Providing funds for a teenager overseas
Posted: Mon Mar 21, 2022 2:11 am
by RetireJapan
Under 18? That makes things much harder.
Our kids have been abroad a few times. I gave them a 'family' copy of my credit card, for emergencies. One was able to open a 'foreign student' account in the UK (with HSBC). Extortionate fees for the first six months, but the only option.
Will they have a guardian/institution? You might be able to send the money to them and get them to pass it on (via Wise or similar).
Re: Providing funds for a teenager overseas
Posted: Mon Mar 21, 2022 5:03 am
by Haystack
beanhead wrote: ↑Sun Mar 20, 2022 11:43 pm
Our eldest child (teenager) is going away for a year.
Any thoughts on the best way to provide spending money?
Looks like our child will not be eligible for a bank account, so I was thinking of a pre-paid card.
If a domestic flight is needed during the year, a credit card may also be needed I guess.
If anyone has previous experience or good advice, please share. Thanks.
Depends on the country, and whether you have an account there or or not.
This is surely an issue the university has input on. Perhaps talk to the study abroad advisor.
Re: Providing funds for a teenager overseas
Posted: Mon Mar 21, 2022 1:14 pm
by beanhead
Haystack wrote: ↑Mon Mar 21, 2022 5:03 am
Depends on the country, and whether you have an account there or or not.
This is surely an issue the university has input on. Perhaps talk to the study abroad advisor.
No account there.
I was wondering if Wise might work but probably would have to be in my name...
Not uni. High school.
But yes, there is an organization involved so your advice stands. I can ask the exchange folks what is best. And as RJ says, maybe sending to the school or host family is the only option.
Re: Providing funds for a teenager overseas
Posted: Mon Mar 21, 2022 3:44 pm
by Tkydon
When my son went abroad for a High School exchange, he used a service called NeoMoney, but I just found out they ceased operations in Sept 2021 ;-(
I'm not selling anything. Just my personal view.
On my recommendation, my wife's cousin opened a Prestia account with a Family GlobalPass card for her son. The service works great.
Comments have been made about fees in other threads...
https://www.smbctb.co.jp/en/service/ban ... ervices_00
If you open a Multi-Money Foreign Currency Savings account, you can exchange Yen to 17 major currencies.
The GlobalPass card can withdraw natively in the foreign currency if the funds exist in that currency in the Multi-Money Account, or in Yen.
It can be used as VISA Direct Debit with Touch and Go, and as an ATM Card anywhere in the world.
You can transfer money to the JPY Account and then either have it switched to foreign currency when withdrawals/charges are made, or if the Exchange Rate moves in your favor, you can move blocks of currency in advance at the preferential rate. Most currencies are 1 Yen each way...
Right now the JPY is relatively weak, so it might pay to go on a transaction basis for the time being, and if/when the JPY strengthens switch money in larger blocks, or if you already have funds in the foreign currency, you can deposit them directly into the Multi-Money account in that Currency.
You can also set a set monthly conversion if you want to - Foreign Currency Deposit Service - This is a service to convert your Yen deposit to foreign currency automatically every month on a set date.
Re: Providing funds for a teenager overseas
Posted: Mon Mar 21, 2022 8:56 pm
by Tony
Gaica pre-paid card might be good for you. It's easy to top up with a shinsei account, and they will only have the funds you load onto it available. You can change the currency on the card, which will cost fees when loading, or preload with yen and get charged a fee when withdrawing in a different currency. But if you load with yen, it is free to send it back to your own account.
Re: Providing funds for a teenager overseas
Posted: Tue Mar 22, 2022 12:59 am
by zeroshiki
Doesn't Prestia have a 1 million yen minimum or else they'll assess you fees? I'm not sure giving a teenager free access to an account that has at least 1 million yen in it a good idea.
EDIT: I just googled and its 500k. Point stands.
Re: Providing funds for a teenager overseas
Posted: Tue Mar 22, 2022 5:02 am
by Tkydon
It's only Yen 200k in Foreign Currencies...
https://www.smbctb.co.jp/en/service/fees/
An initial deposit for 12 months of ￥1万7千 per month would more than cover that...
You could also hide some in Mutual Funds (on the Japanese site) so that they meet the minimum balance criterion but are not directly accessible...
I guess it depends whether the high school student just needs pocket money, or will be paying for accommodation, utilities, food, clothing, mobile phone, tuition, etc., so would need a much larger cashflow...
If the high school student is going overseas to school, he'she had better learn about money (budgeting, responsible spending, saving, emergency fund, etc..)
Still cheaper than wiring money overseas, and less hassle than trying to open a bank account overseas...
It is also possible to set an Overseas ATM Withdrawal Limit on the Global Pass card to prevent unauthorized debauchery.
https://faq.smbctb.co.jp/faq/show?id=22 ... n=smbctben
Re: Providing funds for a teenager overseas
Posted: Tue Mar 22, 2022 5:33 am
by beanhead
Thanks folks for the suggestions.
Don in particular.
I had a Citi account when it was still Citi. Closed it and the Shinsei one when I realized I could do meet my needs with a Sony Bank account and other standard Japanese banks.
Prestia does look like a good option.
It is mostly just pocket money that will be needed, plus I guess mobile phone service and a bit extra for any trips. Tuition, accommodation etc is covered as part of the exchange deal.
Re: Providing funds for a teenager overseas
Posted: Tue Mar 22, 2022 7:13 am
by runmanTX
Tkydon wrote: ↑Mon Mar 21, 2022 3:44 pm
When my son went abroad for a High School exchange, he used a service called NeoMoney, but I just found out they ceased operations in Sept 2021 ;-(
I'm not selling anything. Just my personal view.
On my recommendation, my wife's cousin opened a Prestia account with a Family GlobalPass card for her son. The service works great.
Comments have been made about fees in other threads...
https://www.smbctb.co.jp/en/service/ban ... ervices_00
If you open a Multi-Money Foreign Currency Savings account, you can exchange Yen to 17 major currencies.
The GlobalPass card can withdraw natively in the foreign currency if the funds exist in that currency in the Multi-Money Account, or in Yen.
It can be used as VISA Direct Debit with Touch and Go, and as an ATM Card anywhere in the world.
You can transfer money to the JPY Account and then either have it switched to foreign currency when withdrawals/charges are made, or if the Exchange Rate moves in your favor, you can move blocks of currency in advance at the preferential rate. Most currencies are 1 Yen each way...
Right now the JPY is relatively weak, so it might pay to go on a transaction basis for the time being, and if/when the JPY strengthens switch money in larger blocks, or if you already have funds in the foreign currency, you can deposit them directly into the Multi-Money account in that Currency.
You can also set a set monthly conversion if you want to - Foreign Currency Deposit Service - This is a service to convert your Yen deposit to foreign currency automatically every month on a set date.
Thanks for the great information. I did a little reading on the English SMBC website.
I was planning on posting a question related to the same topic. Not to derail the thread but I have some questions.
My daughter is going to the UK for uni in September.
1. Would the Family Globalpass card work as a local debit card (GBP) and also a Visa account?
2. I assume that I could deposit yen into the account and she could withdraw GBP locally, correct?
3. I am concerned about larger amounts (i.e. paying for tuition, accommodation and such). With the multi-currency account we could feasibly convert currencies when the exchange rate is in our favor. Is this correct?
Thanks in advance.