Indian parents finding kids’ education important than retirement saving


HSBC’s latest edition of the Value of Education Foundations for the future study found that a vast majority (71%) of parents in India were willing to go into debt to fund their child’s university or college education. This rose to 76% among those parents considering a university education abroad for their child.

Of the total number of parents surveyed in India, 41% felt that funding their child’s education was more important than contributing to their own retirement savings.
Many parents (65%) said that paying for their child’s education made it more difficult to keep up with other financial commitments. Parents with a child at university or college were spending around Rs 2,05,000 a year on average on their child’s education.

HSBC’s study found that parents shoulder most of the financial responsibility when it comes to paying for their child’s education, and while the majority (70%) fund it from their day-to-day income, many have saved towards it or would be willing to get into debt to fund their child’s university or college education.

S. Ramakrishnan, Head of Retail Banking and Wealth Management, HSBC India said: “The financial sacrifices that parents are willing to make to fund their children’s education are proof of the unquestioning support they will give to help them achieve their ambitions.

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