HSBC: Parents want value for money in their child’s education

Parents increasingly expect a good return on investment from sending their child to university, according to a new report from HSBC, The Value of Education: Springboard for success.

The report, which surveyed over 4,500 parents in 15 countries, found that parents expect a university education to prepare their child for a successful career.

Globally, more than two in five parents (43 per cent) say the ability to compete in the workplace is a key expectation of a good university education. 

More than a third (37 per cent) of parents believe that university degrees should contribute to income- earning potential in adult life, and a similar proportion believe that university should provide vocational or professional training (34 per cent) and access to opportunities in life (34 per cent).

Parents around the world are united in having high aspirations for their children when it comes to education. Nearly nine in 10 (89 per cent) parents want their children to go to university and 62 per cent want their child to go on to study at a postgraduate level.

Globally, more than half (58 per cent) of parents believe that paying for a child’s education is the best investment you can make. 

Education is considered a top priority for parents all around the world. When deciding how they would allocate money to support their children financially in life, parents put education first, ideally setting aside 42 per cent of their funds for the purpose of their child’s education. 

Simon Williams, Group Head of Wealth Management, HSBC, commented: “It is clear from the research that parents around the world still believe that a good education can improve children’s opportunities and prospects in an increasingly globalized and competitive world”.

“Yet parents are also aware that all of this can be put at risk by a failure to prepare adequately. There are choices to be made and often some financial implications to these choices. These decisions weigh heavily on parents, and many regret not starting their planning sooner. It is never too early to start investing and saving for your child’s education.”

Blake Hellam, Head of Retail Banking and Wealth Management, HSBC Bermuda, added: “The information provided in this research only further underlines the importance of starting today, to plan appropriately for our childrens’ futures.”