71% parents in India would take on debt to fund their children’s university education: HSBC

By: | Updated: July 3, 2016 4:12 PM

HSBC’s latest edition of the Value of Education Foundations for the future study that a vast majority,71%, of parents in India were willing to go into debt to fund their child’s university or college education.

HSBC’s study found that parents shoulder most of the financial responsibility when it comes to paying for their child’s education. (Reuters) HSBC’s study found that parents shoulder most of the financial responsibility when it comes to paying for their child’s education. (Reuters)

HSBC’s latest edition of the Value of Education Foundations for the future study 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.

The study found that mothers were more likely than fathers to believe that contributing to their own retirement savings was less important than funding their child’s education.

Many parents said that paying for their child’s education made it more difficult to keep up with other financial commitments.

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

The survey also found that over two in five parents were concerned about how to fund their child’s education and a similar proportion of 41% were concerned about how much it will cost them.

Other concerns parents had about funding their child’s education included, what to fund and how it would affect their household’s other financial commitments.

Parents considering a university education abroad for their child were the most concerned about how much it will cost them.

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. By having a financial plan to meet their family’s overall needs and reviewing it regularly, parents will be better placed to support their children’s studies without compromising on their own long term financial goals.”

By Sarthak Kathayat (An Intern at FE.com)

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