Indian Parents Spend much for their Children's Education Abroad

Updated on: Wednesday, September 16, 2015

abroad A survey by HSBC has found that as more people seek education abroad, Indian parents end up spending much higher amounts than the estimated cost for their children's undergraduate studies overseas due to lack of realistic planning. It has revealed that this gap is highest in the case of Indians.

Starting to save early and seeking professional advice can help Indian parents meet their children's education aspirations.

As per HSBC's 'Learning for Life' survey, Indian parents are willing to pay the maximum premiums, i.e. 60 percent, to send their children abroad for higher education. They have misjudged the cost which is disproportionately short of the actual cost of education for undergraduate studies abroad.

A total of 5,550 parents across 16 countries were surveyed and the findings reveal that on average, the extra cost of an international undergraduate education is 6.3 times more than parents would consider paying. This shortfall is the biggest among Indians, the survey said. "Our findings reveal that there is a huge expectation mismatch between the costs factored in for an international undergraduate education by parents in India as compared to the actual cost of a foreign education," the survey said.

"Therefore, there is a need for Indian parents to realistically consider the costs, re-evaluate their savings and plan accordingly so that they can support their children's abroad studies," HSBC India Head of Retail Banking and Wealth Management S. Ramakrishnan said.

The additional FUNDING required by parents to send their children to universities abroad can vary significantly between countries.

For Indian parents, the additional cost of sending their children to any university abroad, rather than to a domestic university, is 12.6 times more than the premium they would consider paying.

Indian Parents Spend much for their Children's Education Abroad

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