Despite all their saving and good intentions to manage their money wisely, in a few weeks or months time you may still be woken up by a phone call from abroad, as your son or daughter begs you for just a little bit more money to fund their travels. It may come as a shock when your child realises that funds do run out really quickly, especially if they have not had to live on a budget before. Make sure you are prepared for any financial emergencies on their gap year, so you can transfer any extra funds safely and quickly, should they need it.
Although your son or daughter should have planned a budget and saved enough for their travels, you should put a little money aside to ensure that you can help them in an emergency. Being prepared in advance will avoid any stress of trying to get money together at the last minute and you can rest easy knowing that you can quickly transfer if you need to.
Keep a note of their bank account details so that you can transfer them additional funds. You could also set up a special bank account under your son or daughter's name that allows you to act as a 'third-party mandate', which means that you can easily help manage their finances.
The easiest and safest option for transferring funds is to use a prepaid travel card, which can be loaded with money prior to their departure. If they run out of money whilst they are there, the card can be topped-up by you at home. The cheapest and most popular pre-paid cards are issued by Travelex or Caxton FX as these are fee-free, but there are lots to choose from though some will charge for withdrawals and top-ups. Gap 360 offers a Caxton FX card, which can be applied for online.