Most parents are saving for the education of their children, no matter where they are in the world. Some save more, depending on their country and their perception of the importance of education.
An
HSBC Retail Banking and Wealth Management (RBWM) study, called The Value of Education Springboard for
Success, of 4,500 parents in 15 countries revealed country-by-country
differences to their savings plans for education (The Financial, Finchannel.com, April 21,
2014).
On
average, 58% of parents globally believe that money spent on their child’s
education is the best investment for their children and the family. In
Indonesia and Turkey 75% of parents indicated that education expenditure was
the best investment, while in China it was 77% of parents, and in Brazil it was
79% of parents.
The
study revealed that 89% of parents surveyed want their children to go to
university and 62% want them to study to post-graduate level. They believe that
the higher the education qualification gained, the more likely their children
will be able to compete for jobs to boost their earning potential.
Parents
also felt pressure in making education decisions for their children. Of the
parents surveyed globally 38% said the decision was “daunting.” In Hong Kong,
60% of parents said the decision was daunting and 69% of Taiwanese parents
thought the decision was daunting.
The
majority of parents in emerging economies had higher perceptions of the value
of education than those in developed countries. For example, the United Kingdom
was at the lower end of the scale with 35% of parents, with 36% of French
parents, and 37% of Australian parents.
However,
parents in all countries viewed education as a high priority for their
children. On average, they stated that the ideal allocation of savings for
education, from the household budget, was 42% (against 11% for long-term
investments and 10% for a deposit on a house).
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