For prospective students, heading off to university can be a daunting prospect – and the same goes for parents too. Mums and Dads spend a great deal of time preparing for their child’s education, by saving up and making sacrifices to their everyday life, to ensure that their child has the best possible education and future possible.
From buying books and school uniform to paying for school or university tuition fees, parents spend a substantial amount of money on their children’s education. As a result, Theknowledgeacademy.com sought to find out how much parents tend to spend on their child’s education, and how this differs around the world, utilising a global report from HSBC.
The Knowledge Academy
found, on average, parents spend $44,221 on their child’s primary, secondary and higher education – and this figure rises considerably when including postgraduate degrees and attending university abroad. Understandably, the average spent increases as you progress through education. On average, primary school costs $12,820, whereas secondary school is $2,291 more expensive, costing $15,111. Surprisingly, there is less of jump between secondary school and university, with just a $1,179 increase, as on average university spend is around $16,290.
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The expenditure of parents in the 15 countries surveyed are the following: (from high to low)
1. Hong Kong - $132,161
2. UAE - $99,378
3. Singapore – $70,929
4. USA - $58,464
5. Taiwan - $56,424
6. China - $42,892
7. Australia – $36,402
8. Malaysia - $25,479
9. UK - $24,862
10. Mexico - $22,812
11. Canada - $22,602
12. India - $18,909
13. Indonesia - $18,422
14. Egypt - $16,863
15. France - $16,708
No expense spared
The Knowledge Academy found that in order to prepare for their child’s future in higher education, most parents (71%) started to make plans – and 60% also started making funding decisions – for their child’s education before their child had even started primary school. Before this point, the majority of parents are ready to make personal sacrifices in order for their child to succeed in their future.
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In addition, The Knowledge Academy also found that 31% of parents have forfeited ‘me time’ and/or given up hobbies, and a further 25% have drastically reduced or completely stopped leisure activities and holidays to fund their child’s educational needs. Almost a quarter of parents (23%) admitted to changing their working style and 1 in 5 (20%) have developed different social circles to fit around their children.
Adding to this, the vast majority (87%) of parents are helping to fund their child’s current stage of education, and most parents with a child at university or college are contributing to their funding (85%). Most parents, almost three quarters (74%), are funding their child’s education from day to day income, and less than a quarter (21%) are funding through education savings or an investment plan.
As a result, The Knowledge Academy found that 20% have contributed less towards their own long-term savings or investments and 21% have worked extra hours at work to fund this. However, despite this, almost 3 in 5 parents (59%) are worried they aren’t doing enough for their children, to ensure they have a successful life in the future.
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Ways to save for your child’s education:
If you save regularly, you’ll quickly find that your savings add up and keep growing. If you make it a habit, the costs will soon increase. Here are some top tips for saving:
Make saving a habit
The easiest way to save is to automatically set aside a little bit each month to your savings account, and the best time of this is after you have been paid. Set up your standing order to go out on, or just after pay day, so you won’t have to remember to make the payment and you won’t be tempted to skip a month.
- Pay with cash instead of cards – it will make you more aware of what you are spending
- Divide your money each month into categories: food, bills and a small amount for personal spending. Transfer the money that is left over into a savings account
- Ask for advice from your bank – do your research
There are ways your bank can help you save for your children, whether it be through savings accounts or Junior ISAs (individual savings account). It is also worth asking your workplace if they have a savings scheme – and think about joining it if they do.
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