Parents in India spend an average USD 18,909 (about Rs. 12.22 lakh) towards their child’s education from primary school up to undergraduate level, much lower than the global average of USD 44,221, according to a study.
“Parents in India are spending an average of USD 18,909 (compared with USD 44,221 worldwide) towards all aspects of their child’s education costs (including school or university tuition fees, educational books, transport and accommodation) from primary school up to university undergraduate level,” according to HSBCs The Value of Education series “Higher and Higher”.
Of the respondents, parents in Hong Kong spend USD 1,32,161, followed by the UAE (USD 99,378) and Singapore (USD 70,939), contribute the most towards all aspects of their child’s education costs.
The Value of Education represents views of 8,481 parents in 15 countries and territories, including Australia, Canada, China, Egypt, France, Hong Kong, India, Indonesia, Malaysia, Mexico, Singapore, Taiwan, UAE, UK and the US.
While India is positioned 13th among the 15 countries surveyed, Egypt with USD 16,863 followed by France with USD 16,708 are at the bottom of the list.
“In today’s competitive global job market, education is important. Parents appreciate this and are willing to invest time and money to help their children get the best start in life. Their support shows in the personal, lifestyle and financial sacrifices they are making,” HSBC India Head, Retail Banking and Wealth Management, S Ramakrishnan said.
Further, the study said in India 89 per cent parents are helping to fund their child’s current stage of education.
Over nine in 10 (94 per cent) parents in India are considering post-graduate education for their child, and of these parents 79 per cent expect to contribute towards funding that too, it said.
The majority of parents in India (87 per cent) think completing a post-graduate degree is important for their child to get into full-time employment in their chosen occupation, fourth highest amongst all surveyed markets, it added.
It also revealed that more than half (59 per cent) of Indian parents are funding their child’s education from their income, while 48 per cent through general savings, investments or insurance and almost a third (30 per cent) are funding through a specific education savings or investment plan.
To help fund their child’s education, many parents in India are making financial sacrifices, including reducing spend on leisure activities (44 per cent), the study said.
Almost a third (32 per cent) have worked extra hours in their existing job for fund their child’s education, second highest amongst all the surveyed markets, it added.