How to finance your study abroad

Explore your options for funding an overseas education, from savings and scholarships to education loans and smart investing.

Giving your child an international education opens a world of opportunity. It builds resilience, shapes character and prepares them for a global career. The cost can be significant, but it doesn't have to stand in the way of their future.

A strong study abroad finance plan combines early savings, targeted scholarships and the right lending support. Here are 5 strategies to help you get started.

Start saving early
Choose the right destination
Search for scholarships for foreign students
Grow your wealth through investing
Earn extra income while studying

1. Start saving early

A stable financial foundation is essential for long-term goals like overseas education. Whether your child is 5 or 15, starting now gives you more time to reach your target.

To set a realistic savings goal, follow these 4 steps:

Track your monthly income

List all sources of income, including income, allowances, interest on savings and any other earnings.
Identify fixed expenses

Subtract committed costs – rent, bills, insurance and current school fees – from your total income.
Monitor daily spending

Categorise variable costs like food, transport and entertainment. Look for areas where you can cut back.
Set a clear savings goal

If your child plans to study abroad in 5 years and the estimated cost is VND4 billion, work backwards to calculate savings budget for each year.

Discover hot offers from our education partners – available to HSBC Premier customers.

2. Choose the right destination

The cost of education varies widely between countries, so where your child studies matters.

The cost of education in America and Australia tends to be high. Europe, by contrast, offers strong academic programmes at a lower price point. In Germany, France and the Nordic countries, public universities often charge minimal tuition fees, even for international students.

You can reduce living costs further by:

Sharing accommodation: Renting a place with roommates is often cheaper than living alone.
Cooking at home: Encouraging your child to cook rather than dine out saves money.
Buying smart: Renting course materials or buying them second-hand reduces costs.
Using public transport: Buses and trains are usually the most economical way to commute.

3. Search for scholarships for foreign students

Scholarships are one of the most effective ways to reduce the cost of studying overseas. Many families assume they're hard to find, but with early research, there's more support available than you might expect.

Types of scholarships to explore

University scholarships

These are often merit-based, awarded for academic excellence, leadership roles or extracurricular achievements. Check the website of your child's target university for details.
Government scholarships

These prestigious awards are funded by government budgets. Prominent examples include Fulbright (US), MEXT (Japan), DAAD (Germany) and Chevening (UK).
Sports scholarships

If your child excels in a sport, they may qualify for funding. These are competitive, so compile achievements early and contact university coaches well in advance.
Grants

These are need-based financial aids that don't require repayment. You'll need to provide documentation of family income to qualify.

Start your scholarship search at least 2 years before your child's intended start date. Many scholarships for foreign students have early deadlines, and strong applications take time to prepare.

4. Grow your wealth through investing

Planning for overseas education isn't just about reducing costs. It's also about growing what you have.

Investing early can reduce your reliance on an education loan for abroad studies. If your child is still in primary or secondary school, you might consider investing in mutual funds.

Investing in mutual funds with HSBC

The HSBC Premier affiliate programme offers access to professionally managed portfolios. Key benefits for investors include diversification to spread risk, liquidity for easy buying and selling, and access to a broad range of sectors and investment instruments.

VinaCapital

VinaCapital specialises in funds that leverage Vietnam's economic growth, catering to various risk profiles. Popular options include the Enhanced Fixed Income Fund and the Modern Economy Equity Fund.

Dragon Capital

Dragon Capital offers a range of funds designed to meet diverse investment goals, from stable bond strategies to dynamic equity portfolios. Notable choices include the Income Plus Bond Fund and the Dividend Focus Equity Fund.

See our range of mutual funds

5. Earn extra income while studying

A part-time job can help your child cover day-to-day expenses, develop practical skills and settle into their new environment. On-campus roles are a great way to build connections with faculty and peers. Off-campus work can deepen their ties to the local community.

Earning their own income also helps your child manage a budget – and builds independence that will serve them well beyond university.

Takeaway

Studying abroad opens up a whole new world of opportunities for you. The experiences of an international education will shape you and prepare you for the future. If you start planning early, studying abroad doesn't have to be a financial burden.

Frequently asked questions

Can I get an education loan for abroad studies if scholarships don't cover everything?

Yes, many families use an education loan to cover the gap between savings, scholarships and the total cost. HSBC Premier customers can access specialised lending solutions and overdrafts to support liquidity during this time.

How does the cost of education in America compare to Europe?

The cost of education in America is generally higher due to private university tuition fees, whereas many European countries offer subsidised or free tuition at public institutions. However, the US often offers a wider range of athletic and merit-based scholarships for foreign students.

When should I start planning my study abroad finance strategy?

Ideally, you should start planning at least 5 years in advance. This allows time for compound interest to grow your savings and gives you enough time to research specific scholarships for foreign students before deadlines approach.