HSBC has released a “Quality of Life Report” showing that an increasing number of Asian parents prioritize giving their children an international education, considering it as a significant family investment but having to face financial pressures as a result.
The survey interviewed approximately 11,500 affluent families globally in 11 regions. It found that in popular destinations like the United States, United Kingdom, Australia, and Canada, obtaining a university degree over three to four years could cost between $192,000 to $256,000 (approximately 1.5 to 2 million Hong Kong dollars). The expenses of providing international education for their children are equivalent to about 20% of retirement savings for parents in Hong Kong.
Furthermore, another recent survey by HSBC Hong Kong regarding local parents’ preparation for their children’s education in the UK revealed that on average, parents in Hong Kong are preparing HK$3.6 million for each child going to study in the UK, with an average expected duration of 7.1 years to complete their education.
The survey also found that only 55% of affluent Asian families have education savings plans. 31% of families are relying on their children to apply for student loans, 45% are hoping for their children to receive scholarships, and another 22% are even considering selling assets to cover their children’s education expenses.
For parents whose children are studying far from home, the most concerning aspects are their children’s financial issues (95%), followed by their social or mental well-being (75%), and their physical and health issues (71%). The top three financial concerns include: ensuring they have basic banking services in the destination country (41%), protecting them from financial fraud (39%), and having enough funds to cover unexpected expenses (38%).