Why Save Before Starting a Family
If you’re an expat thinking about starting a family, now is the time to get your expat savings strategy in place. Starting early allows you to take advantage of compound growth and helps you prepare for the significant financial commitments ahead – from education to healthcare to unexpected costs abroad.
Many expats take out regular savings plans before their children are born so that by the time school starts, they’ve already built up enough for fees or other major costs. The earlier you begin, the more time your money has to grow.
The Real Cost of Raising a Child
In the UK, the Child Poverty Action Group estimates the cost of raising a child to age 18 at around £160,000 – and that doesn’t even include housing, childcare, or private education.
For expats living overseas, especially in Asia or the Middle East, international school fees are often one of the biggest expenses:
- GCSEs through to A-levels at an international school can exceed £100,000
- The average UK wedding now costs around £30,000 – and most parents are no longer covering that cost fully
These numbers underline why structured expat savings plans are so crucial if you’re planning a family abroad.
What About University Fees?
If your child chooses to study in the UK, their fee status will matter. Without UK residency, they may be classed as an international student, meaning tuition fees could more than triple.
Saving in advance gives you greater flexibility – including whether your family may return to the UK for schooling and qualify for home student rates.
Ongoing Living Costs
Aside from long-term goals, there are countless everyday costs when raising a family:
- Healthcare (especially in countries without public cover)
- Nursery or childcare fees
- Clothing, travel, and frequent family visits to the UK
If you start putting money aside now, you’ll ease future pressure. A good rule of thumb? Save the amount you’d have paid in council tax or UK commuting – and put it straight into your family fund.
How Much Should You Aim to Save?
Every family’s goals will vary, but here’s a sensible benchmark for expats:
- Set aside 10-15% of your household income into savings or investments
- Review your budget quarterly
- Track and categorise your spending using budgeting tools (you can even use your preferred AI assistant like ChatGPT or Gemini to summarise monthly expenses in multiple currencies)
Structured savings plans can help instil discipline and consistency – key factors when saving for the long term.
Look Into Staff Savings Schemes
Some international employers offer automatic savings or pension contributions as part of their benefit packages. These staff savings schemes deduct contributions from your salary before you even see it, which makes saving far easier and removes temptation.
Ask your employer if they offer such a scheme – or whether you can opt in voluntarily.
Build Your Emergency Fund First
Before making longer-term investments, ensure you’ve built an emergency fund equal to 3-6 months’ living expenses. This gives you the breathing room to manage surprise costs – whether medical, travel, or employment-related – without dipping into your core savings.
Once that’s in place, you can begin to invest more confidently with a longer-term outlook.
Common Mistakes to Avoid
Even with the best intentions, many expats overlook key factors when trying to build a family savings plan abroad. Here are a few common pitfalls to avoid:
- Waiting too long to start – The earlier you begin saving, the more time your money has to grow. Don’t delay until you’re already expecting.
- Not setting a realistic budget – Underestimating monthly expenses can make it harder to stick to a savings habit. Be honest and thorough when budgeting.
- Overcommitting to fixed costs – Locking yourself into expensive commitments like rent or school fees without enough flexibility can strain your cash flow.
- Ignoring currency risk – Saving in your local currency might seem convenient, but exchange rates fluctuate. Wherever possible, save in your home currency (e.g. GBP) to protect long-term value.
- Not reviewing your plan – As your family grows and circumstances change, so should your savings strategy. Reassess every 6-12 months.
Avoiding these mistakes can make a big difference in staying on track and building a stable financial future for your family.
Final Thoughts
Starting a family is a huge milestone – and doing so abroad adds extra complexity. But with a smart expat savings plan in place, you can manage that complexity with confidence.
Begin by building a cushion. Then think bigger – school, uni, and the future you want for your child.
Take the Next Step
Not sure how much you should be saving? Take our free 15-minute Financial Health Check to get a full view of your income, expenses, assets, and opportunities to build wealth – tailored for British expats.
About Three Sixty Financial
Three Sixty Financial is dedicated to helping expats in Asia navigate their financial journeys with confidence. We provide impartial, fee-based, and holistic financial planning to ensure your wealth is managed effectively and ethically. As expats ourselves, we understand the unique challenges of raising a family abroad and offer tailored financial solutions in Malaysia, Thailand, Hong Kong, and other regions across Asia and the world. Our mission is to help you take control of your finances, ensuring your money works smarter for you.
Meet Your Adviser
This article was written by our expert financial advisers at Three Sixty Financial, who have extensive experience helping British expats plan for their families’ financial futures. If you’d like to discuss your personal savings strategy or learn more about our Education Fee Planning Service, get in touch today!
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