A recent HSBC survey has shed light on a striking trend among high-income parents, with a staggering 78% considering or having already sent their children to study abroad. The United States emerges as the top destination of choice, closely followed by the UK, Canada, Australia and Singapore. This phenomenon is explored in depth in the HSBC Quality of Life Report 2024, which compiled responses from 11,230 individuals across 11 countries, including India.
The survey reveals that parents are driven by a desire for better quality education (40%), specialization benefits (38%), overseas exposure (36%), and enhanced employment opportunities (31%). These motivations underscore the value placed on international education in securing a competitive edge in the global job market.
However, financial concerns loom large, with 98% of parents expressing anxiety about the substantial average annual cost of $62,364 (Rs. 52.3 lakh), equivalent to 48-64% of their retirement savings. To alleviate these costs, 53% of parents have established education savings plans, while 40% anticipate their children will take out student loans.
Diversifying funding options, 54% of parents leverage general savings, 32% opt for loans, and 28% seek government grants. Beyond financial worries, parents also fret about social or mental concerns (72%) and physical or health issues (66%) affecting their children while studying abroad.
The report underscores the unwavering commitment of affluent parents to international education, despite financial apprehensions. As demand continues to surge, parents explore varied funding avenues to realize their children’s educational aspirations.
Notable insights indicate that affluent parents prioritize international education, driven by quality and specialization benefits, despite financial worries. Notably, the survey reveals that wealthy parents are willing to invest significantly in their children’s education, with the majority exploring various funding options to make overseas education a reality.
These findings underscore the growing significance of international education in shaping the futures of high-income households. As global competition intensifies, parents recognize the value of overseas education in equipping their children with the skills, networks, and adaptability required to thrive. The report provides valuable insights into the motivations, concerns and strategies of wealthy parents navigating the complex landscape of international education.
