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HSBC Global Report: Parents in China will spend $100K on children's higher education abroad

People's Daily Online | Updated: 2017-07-19 10:07
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Parents in China are willing to spend $100,000 on their children's higher education abroad, according to The Value of Education: Higher and Higher report by HSBC. Sixty percent are expected to spend on their children's undergraduate education and the other forty percent on postgraduate education.

The report said parents in China are the most financially prepared, with over half (55%) funding their child's education through savings, investments, or insurance, and over two-fifths (43%) through a specific education savings or investment plan, twice the global average.

According to the Ministry of Education, China sent 540,000 students to study abroad, and the trend is increasing. The report found that Chinese parents prefer for their children to receive a postgraduate education abroad (49%) more so than an undergraduate education (32%).

The report also pointed out that parents in the Chinese mainland are the most ready to make personal sacrifices to fund their child's studying abroad experience. About 1/3 said they have contributed less toward their own long-term savings or investments, which is 10% above the global average.

One-third of the parents in China said they have either drastically reduced or completely stopped leisure activities or holidays to pay for their children's education.

The report indicates that despite making these sacrifices, seventy percent still worry that they are not doing enough for their children, which is 13% higher than the global average.

The Value of Education is an independent consumer research report commissioned by HSBC to study global education trends. The latest report, Higher and Higher, is the fourth in the series and represents the views of 8,481 parents from 15 countries and territories.

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