Finding the money to pay for tuition, accommodation and the other costs associated with an overseas education is a primary concern for most families, HSBC’s Quality of Life report stated.
The HSBC research surveyed more than 11,200 affluent respondents in 11 markets – namely Hong Kong, India, Indonesia, Mainland China, Malaysia, Mexico, Singapore, Taiwan, the United Arab Emirates, the UK and the US.
It found that three in five (60%) parents in Hong Kong say they lack sufficient savings to fund an international education for their children. In comparison, parents in India and Indonesia can expect the cost of an international education to represent up to 66% of their retirement savings.
Commenting on the findings, Taylan Turan, CEO of retail banking at HSBC, said: “An overseas education is a big investment and can become a financial worry without the appropriate support.”
Additionally, just over half of parents surveyed said they would pay for their child’s international education from their general savings, while 22% would take out a loan and 20% would pay by selling assets.
An overseas education is a big investment and can become a financial worry without the appropriate support
Taylan Turan, CEO of Retail Banking at HSBC
The research stated that an estimated 4.67 million students are expected to study abroad by 2025. Over half (51%) of respondents either aspire to send their child overseas for study or already have a child studying internationally.
Unsurprisingly, the survey found that the US, the UK and Australia remain the top destinations for international students.
However, it added there’s “a new preference is emerging from younger generations of parents, who are considering international markets closer to home, which could help to offset rising education costs”.
The study also revealed that almost 80% of parents would consider buying property in the host country to secure accommodation for their children.