News Release
PUBLIC - This information is issued by
The Hongkong and Shanghai Banking Corporation Limited
9 September 2015
Indians need to save more for their children’s international undergraduate education, says HSBC survey
There is a huge mismatch
between the expected cost and the actual cost of education and this
shortfall is the biggest among Indians
The cost of education in the US, which is the preferred destination for Indian parents, can exceed INR 1.09 crore
HSBC’s
latest edition of The Value of Education report ‘Learning for Life’
survey highlights the need for parents in India to save more to finance
their children’s international education in undergraduate studies. The
total amount of expenditure that Indian parents have factored in for
their children’s international education is a fraction of the actual
cost they will have to bear.
Indian
parents, although willing to pay the maximum premiums (60%) to send
their children abroad for higher education, have misjudged the cost
which
is disproportionately short of the actual cost of education for
undergraduate studies.
HSBC
surveyed 5550 parents across 16 countries 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.
The
report showcases how much extra parents would consider paying to send
their child to university abroad. By comparing this expectation with the
actual cost of completing an undergraduate degree as an international
student, it is clear that many parents have unrealistic expectations.
For parents in India, this gap is the highest.
The
additional funding required by parents to send their child to
university abroad can vary significantly between countries. The US is
regarded
as offering the best quality of education worldwide, but the total cost
of attaining an undergraduate degree there as an international student
can exceed INR 1.09 crore, making it the most expensive destination
globally.
For
Indian parents, the additional cost of sending their child to
university in the US, rather than to a domestic university, is 12.6
times greater
than the premium they would consider paying. This is because in India,
where a domestic university education is the least expensive of the 16
countries, parents regard the most expensive destination overall – the
US – as offering the highest quality education.
PUBLIC
S. Ramakrishnan, Head of Retail Banking and Wealth Management, HSBC India commented:
“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.
Therefore, there is a need for parents to realistically consider the
costs, reevaluate their savings and plan accordingly so that they can
support their children’s ambitions.”
“Starting
to save early and seeking professional advice can help parents meet
their children’s education aspirations. At HSBC, we offer a suite
of personalized products and expert advice that will help customers
plan better for a comfortable and secure tomorrow.”
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These
research findings help HSBC to better understand our customers globally
and meet their needs in providing practical steps to help them
financially
for their children’s education.
Media enquiries:
Notes to editors
The
Value of Education Learning for life, was first published in July and
represents the views of 5,550 parents in 16 countries and territories
around the world:
Australia, Brazil, Canada, China, France, Hong Kong, India, Indonesia,
Malaysia, Mexico, Singapore, Taiwan, Turkey, United Kingdom, United Arab
Emirates and United States.
The
survey was conducted online in by Ipsos MORI in March and April 2015,
with additional face-to-face interviews in the UAE. The findings are
based on a nationally
representative survey of parents in each country who have at least one
child aged 23 or younger currently (or soon to be) in education, and who
are solely or partially responsible for making decisions about their
child’s education. There was a minimum sample
of 300 parents in each country.
About HSBC India
The
Hongkong and Shanghai Banking Corporation Limited in India offers a
full range of banking and financial services through 50 branches and 140
ATMs across 29 cities.
HSBC
is one of India's leading financial services groups, with over 32,000
employees in its banking, investment banking and capital markets, asset
management, insurance,
software development and global resourcing operations in the country.
It is a leading custodian in India. Nearly 6% of India's trade passes
through HSBC. The Bank is at the forefront in arranging deals for Indian
companies investing overseas and foreign investments
into the country.
About The HSBC Group
HSBC
Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from over 6,100 offices in
72 countries
and territories in Europe, Asia, North and Latin America, and the
Middle East and North Africa. With assets of US$2,572bn at 30 June 2015,
HSBC is one of the world’s largest banking and financial services
organisations.
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Regards,
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Pranjal Arekar
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Management Associate
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D : +91 022 4066 1755
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M : +91 (0) 99209 20979
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F : +91 022 4066 1792
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Hill+Knowlton Strategies
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