Indian parents on an average spend $8,552 on elementary education, $4,264 on secondary education and $6,093 on university undergraduate education, says the HSBC report
New Delhi: Indian parents spend an average of $18,909 (Rs12.2 lakh approximately) on their child’s education–from primary to university undergraduate level, a report by the HongKong and Shanghai Banking Corp. Ltd (HSBC) said on Monday.
Though the expenditure on education by Indian parents are way below the global average, in terms of aspirations, they are among the most optimistic, said the survey carried out in 15 countries. The global average is $44,221.
According to the report, Indian parents on an average spend $8,552 on elementary education, $4,264 on secondary education and $6,093 on university undergraduate education.
Globally, in Hong Kong, parents spend the most – $132,161 on their children education, followed by the United Arab Emirates ($99,378) and Singapore ($70,939). Among countries surveyed, parents in Indonesia ($18,422), Egypt ($16,863) and France ($16708) spend less than their Indian counterparts.
In India, parents fund their children education from day to day income, general savings, education investments or a combination of such factors. The survey said 59% of the parents said they are funding their child’s education from day-to-day income, while 48% are funding through general savings, investments or insurance, and 30% are funding through a specific education savings or investment plan.
In terms of career choice, parents in India prefer courses such as engineering (18%), computer and information sciences (15%) and Business, management and finance (13%).
The survey said many in India are making financial sacrifices, including reducing spend on leisure activities, working extra hours in jobs and contributing less to their own long-term savings.
However, they remain optimistic that their spending will help better their children’s future. “Parents in India are confident that their children will reach their full potential and be successful in the future. They are among the most optimistic in the countries surveyed worldwide."
The majority (87%) of parents are confident their child will have a bright future, while 85% are confident they will get a great job and 82% are confident they will get top grades in their exams," said the report.