The 'Bank of Mum and Dad' goes global: how to send money to children studying overseas

September marks the start of a new academic year in the northern hemisphere, with thousands of Australian students embarking on a life-changing journey to study abroad. This transition, however, is not just a personal milestone for the students; it's also a financial one for their parents, as the "Bank of Mum and Dad" expands its reach to a global scale.

While the Bank of Mum and Dad is most known for its significant role in helping children enter the Australian property market – with parents now gifting an average of $74,040 for house deposits, according Mozo’s latest report – its influence extends beyond homeownership.

The global reach of the "Gift of Mum and Dad"

Mozo’s Bank of Mum and Dad Report 2025 highlights a generational shift, where financial support is increasingly viewed as a "gift" with no expectation of repayment. This trend of no-strings-attached generosity is particularly relevant for students, who often rely on a steady flow of funds for tuition, rent, and daily living expenses while overseas.

The report, which surveyed 1,019 Australian parents, found that three quarters (75%) of parents were offering money with no expectation of getting it back. This shift from loan to legacy is a testament to parents' willingness to invest in their children's future, whether it's a first home or a first-class education abroad.

CISaustralia – which runs overseas study programs – reveals the number of Australian students participating in learning abroad programs in 2025 is 34,685, with a projected increase to 36,537 in 2026, according to the latest industry survey results.

For those with a child beginning studies in Europe, the US, Asia or Canada this month, financial assistance can be a lifeline. From covering initial costs like accommodation bonds and textbooks to providing a regular allowance for groceries and social activities, the Bank of Mum and Dad can be a helpful source of financial stability for students navigating life in a new country.

How to transfer money to your child studying overseas

Once you've decided on the amount you'll be sending, the next step is to choose the most efficient and cost-effective way to get the money into your child's hands. While traditional banks offer international transfers, these can be slow and costly. There are specialist money transfer services that may provide better exchange rates, faster transfers and lower fees.

“Based on the average transfer with a Big Four bank of just over $3000, consumers could each save over $100 per transaction by switching to a low-cost supplier,” according to the Australian Competition & Consumer Commission’s (ACCC) latest report findings.

When comparing your options, it's important to consider three key factors:

• Exchange rate. This is the rate at which your Australian dollars will be converted into the local currency. A seemingly small difference in the exchange rate can make a big impact on the final amount your child receives.
• Fees. Look for transparent fee structures. Some providers charge a flat fee, while others may include a margin in their exchange rate. Always compare the total amount the recipient will receive, not just the upfront costs.
• Transfer time. How quickly will the money arrive? For a student who needs access to funds for urgent expenses, a fast transfer time is crucial.

It's also worth checking with your current bank, as some major Australian banks like NAB and Commonwealth Bank may waive international transfer fees for certain types of transfers.

No matter which method you choose, it's essential to have all the accurate details for the international transfer, including your recipient’s full name, bank account number (IBAN for Europe), and the bank's SWIFT or BIC code. Double-checking this information before hitting send will ensure the funds arrive without delay.