Professor Colin B. Grant BA, PhD, FHEA, FRSA Vice President (International), University of Southampton is of the opinion that “Parents are aware of the need to enhance their children’s life chances through higher education, and the trend towards market-relevant STEM and business/finance subjects across different regions, especially in Asia, is clear.”
With the rise of the information economy and a challenging job market for young people, education has never been more important than it is today. Parents know this and they are willing to go to great lengths to secure the right educational opportunities for their children.
Parents’ ambitions for their children, their views on the costs and benefits of education, and the sacrifices they are prepared to make to ensure their children can fulfill their potential.
As per the HSBC report, Nearly half of Indian parents sacrifice their holidays to take up extra work and borrow to fund their children’s university education, according to the latest report. As much as 49 percent Indian parents work extra hours and took a second job to pay for their children’s university education, claims an HSBC global survey on education carried out among 10,000 parents and 1,500 students across 15 countries, including India. Indian parents spend an average of $ 5,560 on their child’s education over a typical university course.
In the face of financial pressure and lack of long-term planning, many parents are forced to make personal sacrifices to support their children during their studies. Apart from financial commitments, the majority (82%) of parents are ready to make personal sacrifices for their child to succeed. To support their child’s education, almost a third (31%) of parents have forfeited ‘me time’ and/or given up hobbies, and 25% have either drastically reduced or completely stopped leisure activities and holidays. The survey reveals that 84 percent relies on their income to support their child’s university education, with 41 percent having no specific education savings fund at all.
According to the study, the most important goal that Indian parents have for their children is that they build successful careers in their adult life. This is the ultimate goal for 51% of the Indian parents surveyed.
Indian parents ranked three most important goals that they wanted their child to achieve as an adult – 51% of the Indian parents choose successful careers, while 49% choose happiness in life, 33% identified a healthy lifestyle, 22% wanted them to earn enough for a comfortable life and 17% rated fulfilling their children’s potential as the ultimate goal. It is really interesting that only 49% of the Indian parents rated happiness in life as one of the three most important goals.
Over one third (35 percent) globally and just under two-thirds (64 percent) of Indian parents have taken on debt to put their kids through university.
Key findings of the HSBC report:
•74% of parents are funding their child’s education from day-to-day income.
•41% of parents would consider university abroad for their child, yet 34% of them do not know how much it would cost.
•The USA is the most likely destination for parents considering university abroad for their child.
•60% of parents would consider a university degree that is either completely or partly online.
•75% are confident their child will have a bright future.
•68% are confident their child will get a great job.
•62% are confident their child will get top grades in their exams
Charlie Nunn Group Head of Wealth Management, HSBC said,”At HSBC, we recognize that education is key to human development and prosperity. Every year, we help parents and students around the world to make their education plans a reality, and we support access to education for disadvantaged young people through the HSBC Education Programme. I hope the insights in this report will help parents appreciate the long-term costs of education and put practical measures in place to ensure their children have the best start in life.”