The Value of Education - Learning for life Global Report - HSBC
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The Value of Education Learning for life Global Report
Contents
4 Foreword
6 Key findings
8 Making the grade
12 Higher education: a recipe for success and happiness
18 Sound foundations for a successful life
22 Funding the future
26 Broadening horizons: higher education abroad
30 Practical steps for planning your child’s education
32 The research
34 The Value of Education programme
3
Foreword
University education is the gateway to a successful and happy future. Equipping
young people with the core and softer skills they need to enter their careers and
achieve their goals, it also benefits the wider society, as highly educated graduates
will help improve medical care, foster innovation or run successful businesses.
Decisions made at the earliest stages of a child’s education can ensure they make
the most of this opportunity. At HSBC, we help parents plan ahead so they can
help their children fulfil their potential.
I am therefore delighted to introduce the second report in The Value of Education
series, a global consumer research study commissioned by HSBC. Learning for
life explores parents’ hopes and expectations for their children’s education and
beyond, with a focus on how parents can help children get what they need to
achieve their life goals.
The findings reveal that parents aspire to professional careers for their children,
whether in traditional fields like medicine, engineering or law, or in newer sectors
like business management or computer science.
However, parents are also conscious that, in many ways, their children have
it tougher than they did. An increasingly competitive job market means that a
standard undergraduate degree is seen as necessary but not sufficient. Young
people need to do more to stand out from their peers. Postgraduate qualifications
and studying abroad are ways to do this, but they can be costly and so require
careful advance planning.
Parents also realise that their children need to graduate with life skills as well as
academic qualifications to be attractive to employers. They need to leave university
as confident, responsible and well-rounded adults.
Independence – including financial responsibility – is viewed as the most valuable
asset with which a child can leave university. Children can gain an initial grasp
of this through contributing to their own university costs, with many parents
expecting their children to save up or get a job in order to share the funding.
However, it is parents who take the primary responsibility for funding their
children’s university education. While the majority have or expect to have a solid
plan in place for doing so, even the best laid plans can go awry. Parents often find
that, by the time their children reach university age, they have not saved as much
as they intended. The result is that both they and their children are faced with
borrowing more and paying off debt for longer than they had planned.
I hope the insights in this report will help parents appreciate the long-term impact
of their decisions and put practical measures in place to ensure their children can
fulfil their potential.
Charlie Nunn
Group Head of Wealth Management, HSBC
4 The Value of Education Learning for life
5
Key findings
64%
of parents say that being happy in
life is one of the most important
goals they have for their child,
79%
of parents see an undergraduate
compared to only 30% who say degree or higher qualification as
career success. essential to their child achieving
important goals in their life, and
50% think a postgraduate degree
(master’s or higher) is necessary.
83%
of parents have a specific
occupation in mind for their child,
with medicine (19%),
engineering (11%) and computer
science (8%) the most popular.
58%
of parents would most like their
39%
of parents have paid for additional
66%
of parents have sought advice
child to study one of the following tutoring for their child at primary about their child’s university
five degree subjects: medicine; school stage, 44% at secondary education and, of these, 72%
business, management and school, and 23% at university. learned of new options they had
finance; engineering; computer not considered.
and information sciences; or law.
£¥€$
6 The Value of Education Learning for life
Parents who think they will
borrow money to fund their
child’s university costs expect
to be paying it off on average for
42%
of parents think that
6.7 years 77%
of parents would consider
a university education after their child graduates, and sending their child to study at
offers poor value expect their child to be paying university abroad and, of
for money. off their own university debt for these, 24% would be willing
7.5 years
to pay at least half as much
again, compared to the cost
of educating their child in their
home country.
58%
of parents think that a university
72%
of parents with a pre-primary
45%
of parents think that enhanced
education is unaffordable for the school child think they will save confidence and social skills are
majority of people in their up to cover their future university the most valuable aspects of a
country. costs; however, only 53% of university education in preparing
those with a child at university students for life after graduation.
are funding their contribution
from savings.
7
Making the grade
Happiness, health children – a higher proportion Parents in Mexico (52%),
Malaysia (45%), the UAE (43%)
than being happy (63% and 52%
and financial respectively). In contrast, just and Indonesia (41%) also rate
career success for their children
well-being over one in 10 (13%) parents in
Indonesia and one in five (21%) highly, although they rank it as
parents in France and Mexico say the second most important goal,
Most parents want a happy life for that leading a healthy lifestyle behind being happy in life.
their children – almost two thirds is a top goal for their children,
(64%) around the world say that a far lower proportion than say Other parents rank different goals
being happy in life is one of the happiness (56%, 86% and 65% more highly. Rather than being
three most important goals they respectively). successful in their career, they
would like their children to achieve are hoping for their children to
as an adult. Financial security rates highly in fulfil their potential, to achieve
some parents’ hopes for their the highest possible academic
This goal is particularly important children. In France, three in five qualifications, or to make a
for parents in developed (60%) parents rank earning difference to society.
economies. In France, nearly nine enough money to enjoy a
in 10 (86%) parents say that being comfortable life as an important In many developed economies,
happy in life is the most important goal, as do over two in five parents prioritise their children
goal they have for their children, parents in Hong Kong (43%), fulfilling their potential over
a desire shared by around three- Australia, Canada and Taiwan achieving career success. Half of
quarters of parents in Canada (all 41%). In contrast, far fewer UK parents (50%) and around two
(78%), the UK (77%), Australia parents in China (16%), Mexico in five parents in Canada (45%),
(77%) and the USA (72%). (20%), the UAE (20%) and India the USA (40%), Australia (40%)
(22%) say earning enough to live and Singapore (37%) say this is an
Physical well-being and financial comfortably is a top three desire important goal, one that is ranked
security also figure highly in for their children. higher than pure career success.
parents’ aspirations for their
children. More than a third (35%) The desire for children to achieve
of parents around the world want Seeking success the highest possible academic
their children to lead a healthy qualifications is strongest in the
lifestyle and a similar proportion In many emerging economies, UAE, where a third (33%) of
(34%) want them to earn enough parents hope for their children parents say this is an important
to enjoy a comfortable life. to be successful in their career goal for their children, as it is for
almost as strongly as they do for parents in Malaysia (29%) and
In some places, health beats them to be happy in life. In India, India (28%).
happiness. Almost three-quarters career success (51%) is actually
(72%) of parents in China and the most popular goal parents Making a difference to society
more than half in Turkey (55%) have for their children, out-scoring is important to two in five (38%)
rate leading a healthy lifestyle a happy life (49%). parents in Indonesia and to just
as an important goal for their under a quarter (22%) of parents
in Turkey and India.
8 The Value of Education Learning for life
64%
of parents rank
being happy in life
as one of their top
three goals for their
child
The ultimate goal parents have for their children is to be happy in life
64% 35% 34% 30% 29%
Average
Be happy Lead a healthy Earn enough to enjoy Be successful Fulfil their
in life lifestyle a comfortable life in their career potential
France 86% 21% 60% 29% 26%
Canada 78% 33% 41% 24% 45%
UK 77% 27% 39% 17% 50%
Australia 77% 34% 41% 17% 40%
USA 72% 33% 38% 21% 40%
Mexico 65% 21% 20% 52% 32%
China 63% 72% 16% 15% 26%
Brazil 62% 30% 35% 32% 13%
Taiwan 61% 57% 41% 17% 29%
Singapore 61% 32% 33% 36% 37%
UAE 60% 29% 20% 43% 15%
Hong Kong 58% 39% 43% 19% 33%
Indonesia 56% 13% 30% 41% 29%
Turkey 52% 55% 32% 26% 13%
Malaysia 52% 26% 35% 45% 14%
India 49% 33% 22% 51% 17%
Q: What are the three most important goals that you want your child to achieve as an adult?
A: Ranked 1, 2 or 3. (Base: All parents)
9
83%
of parents have a
specific occupation
in mind for their child
Career ambitions Parents in Asia tend to favour
occupations for their children that
Around three in 10 parents in
the UAE (33%), Indonesia (31%)
deliver benefits to society. Almost and Turkey (27%) say they would
When it comes to the occupations
three in five parents (59%) in most like their children to get a job
that parents would most like their
Indonesia think this way, as do in medicine. This compares to just
children to go into, more than
more than two in five in Malaysia over one in 10 (11%) in Australia,
four in five (83%) have a specific
(49%), China (45%) and Turkey Canada and the UK, where
type of job in mind. In emerging
(44%). In contrast, just 13% of parents are more concerned with
economies, this proportion is
parents in France and less than a their children finding a job that
even higher, with more than nine
quarter in Canada (24%), the USA suits their individual strengths.
in 10 parents in Indonesia (97%),
(23%) and the UK (23%) share
Mexico (95%), China (94%) and
this view. A job in engineering is the most
Malaysia (92%) having a specific
preferable for almost a fifth of
occupation in mind for their
Parents in developed economies parents in Brazil (18%), Malaysia
children.
are more likely to take into (18%), the UAE (16%) and Mexico
account their child’s individual (16%), compared to just 5% of
Parents in developed economies
strengths when considering a parents in Australia, Singapore
are less focused on this. Fewer
desired occupation. Over half of and Taiwan.
than two thirds (62%) of parents
parents in Australia (55%) and
in Australia and fewer than three-
more than two in five in the USA Parents in India – a country
quarters (72%) in the UK and
(45%) and Canada (44%) think renowned for its emerging
Canada have a specific job in mind
about how well an occupation technology sector – are more than
for their children. This is also the
suits their child’s personal twice as likely as the average to
case for Taiwan (72%).
strengths. However, only around a want their children to go into a
quarter of parents in Brazil (25%), job in computer science. Nearly
Parents’ career preferences for
Malaysia (25%) and Taiwan (24%), one in five (18%) see this as the
their children are based on several
and an even smaller proportion preferred career for their child,
factors. More than a third (35%)
in Hong Kong (14%), say this is compared to just 8% across the
say that income-earning potential
a consideration in their career world.
is a key consideration. A similar
preferences for their child.
proportion think that the job’s
There is also a distinct gender
benefit to society (35%) and how
gap when it comes to career
well-suited it is to their child’s Doctors, engineers preferences. Parents are more
individual strengths (34%) are
important. and IT experts likely to want their daughters to
go into medicine (22%) than they
Professional, science-based are for their sons (15%). They are,
Income-earning potential exerts
careers – which traditionally however, more likely to want their
a much stronger influence on
combine good income-earning sons to go into engineering (15%,
parents’ job preferences for their
potential with a high level of job compared to 6% for daughters)
children in certain countries. Just
security – take the top spots in or computer science (10%,
under half of parents in India
parents’ preferences for their compared to 5% for daughters).
(49%), Singapore (48%), Malaysia
child. Medicine is the most This is true regardless of parents’
(46%) and Indonesia (44%)
favoured occupation, with around own gender.
say this is a key consideration,
compared to around a quarter in a fifth (19%) of parents preferring
Turkey (26%), France (25%) and it. Engineering (11% of parents)
Mexico (24%). and computer science (8%) are
also popular.
10 The Value of Education Learning for lifeMedicine, engineering and computer science are parents’ top career preferences for their children
Medicine Engineering Computer science
Average 19% 11% 8%
UAE 33% 16% 11%
Indonesia 31% 10% 11%
Turkey 27% 14% 9%
Malaysia 25% 18% 3%
Brazil 23% 18% 6%
Mexico 22% 16% 10%
Hong Kong 19% 6% 4%
China 16% 8% 7%
France 15% 10% 6%
Singapore 15% 5% 6%
India 14% 14% 18%
USA 13% 14% 10%
Taiwan 13% 5% 6%
UK 11% 7% 9%
Canada 11% 11% 5%
Australia 11% 5% 7%
Q: Which, if any, of these specific types of occupation would you most like your child to go into? (Base: All parents)
Forging their nine in 10 in Australia (90%),
Turkey (88%) and Canada (87%).
their children to follow in their
footsteps.
own path
Parents in certain jobs are For other parents, however,
While the majority of parents particularly unlikely to want their following the family tradition is a
have a clear idea of the career children to go into the same desirable goal. Almost half (46%)
they would most like their children field. Only around one in 10 of parents who work in medicine
to go into, more than four in five parents who work in sales and want their child to enter the same
(83%) parents around the world marketing (12%), the non-profit profession, as do around three in
would prefer their child to enter sector (11%), education (11%) 10 of those practising law (31%),
a different occupation from their or a professional trade (9%) – engineering (28%), science (28%)
own. This figure rises to around and only 4% who work in retail, and computer science (28%).
tourism and catering – would like
1150%
of parents think
their child needs
a postgraduate
qualification to
achieve their life
goals
Higher education: a recipe for
success and happiness
The road to life goals. However, this view
is shared by fewer than half of
Some parents are less convinced
that a postgraduate education is
achievement parents in Canada, Australia and a prerequisite for their children
the UK (all 48%). to achieve their life goals. Only
As access to undergraduate around one in 10 in Australia
education improves throughout In an increasingly challenging job and the UK (both 14%), and just
the world1, parents have come to market2, many parents believe under a quarter (24%) of Canadian
see it as an essential requirement that a postgraduate qualification parents, think that their children
for their children to achieve the (master’s degree or higher) is need a postgraduate degree to
goals they wish for them. Almost also crucial to help their children achieve their future goals.
four in five (79%) parents who stand out. Half (50%) of parents
have specific goals for their child around the world think that a In countries where parents are
think that an undergraduate postgraduate degree is now a less likely to see university as
degree or higher qualification is requirement for their children to a necessity, there is a wider
necessary. achieve their goals in life. acceptance of vocational training
as a means of children achieving
In many countries, the This is particularly evident in their life goals. Over three in 10
necessity of having at least an emerging economies: nearly nine parents in Canada (38%) and the
undergraduate degree is almost in 10 (88%) parents in India deem UK (33%), and around one in four
universally accepted by parents, a postgraduate qualification a in Australia (26%), France (26%)
with more than nine in 10 in necessity, as do four in five (80%) and the USA (25%), think that this
China (97%), Mexico (96%), parents in the UAE and around is the highest level of education
Indonesia (96%), Turkey (93%), two thirds of parents in Mexico necessary, compared to a tiny
Malaysia (92%), the UAE (92%) (69%), Indonesia (67%) and proportion of parents in China
and India (91%) seeing it as an Malaysia (65%). (1%), Turkey (1%), Mexico (2%)
essential step to achieving and Indonesia (2%).
2
Almost 202 million people were
unemployed in 2013 around the world,
1
In OECD countries, the tertiary education an increase of almost 5 million from 2012
graduation rate has risen from 20% to and on course to increase to more than
39% between 1995 and 2010 (www.uis. 215 million by 2018 (www.ilo.org/wcmsp5/
unesco.org/Education/Documents/oecd- groups/public/---dgreports/---dcomm/---publ/
eag-2012-en.pdf - p 68) documents/publication/wcms_234107.pdf)
12 The Value of Education Learning for lifeHalf of parents think a postgraduate degree is necessary for their
children to achieve their life goals
Quality, cost and
reputation: finding
Average
50% the right balance
79%
Given the importance parents
88% place on their children getting
India
91% a university degree, the choice
of academic institution is one
80% for careful consideration. The
UAE
92% quality of teaching on offer, the
reputation of the institution,
69% the cost of tuition and the cost
Mexico
96% of living are among the most
significant factors feeding into the
67% final decision.
Indonesia
96%
The quality of teaching is a strong
Malaysia 65% consideration for the majority of
92% parents. Almost nine in 10 parents
(86%) say this is important when
64% choosing a university. Nearly
Turkey
93% three-quarters say the university’s
graduate employment rate (73%),
63%
Brazil its academic specialism (72%)
89% and its facilities/equipment (72%)
are also important.
52%
China
97% The prestige and reputation of
an institution is also a key factor.
France 46%
More than two thirds (69%) of
60% parents across the world consider
40% this when deciding which
Hong Kong university their children will go to,
85% a figure that rises to over four in
40% five in China (85%), Turkey (83%),
Singapore and India (81%).
90%
37% Just under two thirds (65%) of
Taiwan parents see tuition costs as an
84%
important consideration. This is
31% especially important for parents
USA in the USA (81%), as well as
60%
for those in Malaysia (77%),
24% Indonesia (77%) and Singapore
Canada (76%). The cost of living is
48%
deemed important by a similar
14% proportion of parents (62%),
UK and particularly so by parents in
48%
Malaysia (79%), Indonesia (72%),
14% Turkey and India (both 69%).
Australia
48%
Master’s degree or higher
Undergraduate degree or higher
Q: What are the three most important goals that you want your child to achieve
as an adult? Q: What level of education do you think is necessary for your child to
achieve these goals?
(Base: Parents who have specific goals for their children to achieve as adults)
13Subjects matter In countries where there is a
greater emphasis on career
Business, management and
finance is ranked second globally
success as a goal, this figure (14%), but is the top preference
While the choice of a university is
is even higher – around three- in China (25%), Singapore (25%),
important, parents also feel that
quarters of parents in India (77%), Taiwan (19%) and Hong Kong
the subjects they study will have
the UAE (73%), Malaysia (72%) (19%). Engineering – ranked third
a major impact on their children’s
and Indonesia (68%) would like globally (13%) – is parents’ first
future success.
their children to study one of preference in Malaysia (25%),
these five degree subjects. India (23%), Brazil (19%), and the
Nearly three in five (58%) parents
UK (11%), and is ranked equal first
around the world would most
Medicine is the most highly with medicine in Canada (11%).
like their children to study one of
favoured subject globally
the following five subject areas
(17%), with a particularly strong
at university: medicine; business,
preference for this degree in
management and finance;
Indonesia (29%), the UAE (28%)
engineering; computer and
and Turkey (25%).
information sciences; or law.
17%
of parents would
like their child to
study medicine at
university
14 The Value of Education Learning for lifeCareer-focused degree subjects are the most popular with parents
and
Finance
management
Management and
Business,
Business,
finance
science
information
Computer
Sciences
Information
Computerand
17%
Medicine
17%
Medicine
14%
and
Average 14%
9%
9%
29% 28%
25%
21% 21%
18% 17% 16% 15% 15% 14% 13% 12% 11% 11% 10%
Medicine
25% 25%
22%
18% 19% 19%
16% 15%
13%
Business, 10% 9%
management 6% 6% 7% 7%
and finance 2%
25%
23%
20% 20% 19%
16%
12% 11% 11%
10% 10%
8% 7%
6%
Engineering 3% 4%
16%
14%
Computer and 11%
10% 10% 10% 10%
information 9%
7% 8% 9%
6% 6% 6% 6%
science 5%
14%
11% 12%
6% 7%
5% 5% 5%
Law 3% 0% 2% 3% 2% 4% 3% 4%
sia
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Q: Which, if any, of the following subject areas would you most like your child to study at university? (Base: All parents)
15Asking for advice different benefits. Advice from
personal contacts is the most
Among parents whose child is
primary school age or older, nearly
effective at relieving parents’ two in five (39%) have paid for
Almost two thirds (66%) of
worries about their children’s additional tutoring at the primary
parents have sought advice
university education. Over a third level. A larger proportion (44%)
about their children’s university
(37%) of parents who sought of those with a child currently at
education. Parents in Asia are
advice from family say it relieved secondary school or university
the most likely to have done
their worries, as do a similar have paid for tutors at the
so – more than eight in 10 in
proportion who consulted friends secondary level. Nearly a quarter
China (88%), Indonesia (87%),
(35%), teachers (33%) and other (23%) of those with a child at
India (85%) and Malaysia (82%).
parents (31%). university have paid for tutoring
In contrast, only around half
to supplement their university
this proportion in the UK and
Financial advisers are the education.
Australia (both 42%) have sought
most likely to deliver a better
any advice about their children’s
understanding of the monetary In total, almost half (46%) of
university education.
implications of a university parents around the world with
education (40%). New children across all educational
Of parents who obtained advice,
possibilities are most likely to be stages have paid for additional
more than seven in 10 say that
suggested online – via an advice tutoring for a child during at least
they learned of possibilities and
website (38%) or discussion one stage, a proportion that rises
options they had not previously
forum (35%) – or by specialists, to over seven in 10 in China (74%),
considered (72%), that it gave
such as teachers and education India (71%) and Indonesia (71%).
them a more realistic view of
advisers (both 36%).
the options available (71%) or
In contrast, only around one in
that it increased their confidence
four parents in the USA (26%),
(71%). Around two thirds say Giving an extra boost the UK (23%) and Canada
that, by seeking advice, they
(23%), and one in five parents
avoided making mistakes (67%), Parents are keen to provide extra in Australia (21%) and France
relieved their worries (67%), educational support for their (20%), have paid for tutoring.
gained a better understanding children. Nearly four in five (78%) There is, however, clearly
of the financial implications have paid or would consider appetite for additional tutoring
(66%), or were alerted to barriers paying for additional tutoring in these countries, with at least
and complications they had during at least one stage of their a further two in five parents in
overlooked previously (65%). children’s education. This rises to each country open to considering
around nine in 10 parents in the option (UK 42%, USA 43%,
The various sources of advice China (93%), Indonesia (92%), Canada 44%, France 49% and
consulted by parents offer India (89%) and Malaysia (88%). Australia 50%).
Parents benefit by seeking advice about their children’s university education
Learned of possibilities/options I hadn’t considered 72%
Increased confidence 71%
More realistic view of the options available 71%
Avoided making mistakes 67%
Relieved worries 67%
Better understanding of financial implications 66%
Learned of barriers/complications I hadn’t considered 65%
Q: What benefits, if any, did you get from the sources of advice that you used? (Base: Parents who have sought advice about their
child’s university education)
16 The Value of Education Learning for life66%
Not all parents think extra tutoring in China (68%), Taiwan (59%),
is necessary. Among those who Malaysia (49%) and India (46%).
would not consider it, two in five
(40%) think their child does well The cost of tutoring is also a
in school without extra help, and barrier for nearly one in five (19%)
of parents have a third (33%) simply do not want parents who are not considering
sought advice to push their child too hard. This it. This is particularly the case
reluctance to overburden children in the UK (36%), Turkey (32%),
about their child’s is strongest among parents who France (31%) and Australia (30%).
university education would not consider tutoring
Most parents have paid or would consider paying for additional
tutoring for their children
78%
Average 46% have paid or would
consider paying for
32%
additional tutoring
China 74% 19%
Indonesia 71% 21%
India 71% 18%
Malaysia 63% 26%
Singapore 59% 27%
Taiwan 59% 19%
Turkey 57% 20%
Hong Kong 56% 22%
UAE 51% 23%
Brazil 35% 35%
Mexico 26% 49%
USA 26% 43%
Canada 23% 44%
UK 23% 42%
Australia 21% 50%
France 20% 49%
Have paid for additional tutoring
Have not paid, but would consider paying
Q: Have you paid or would you consider paying for any additional tutoring for your
child at any of the following stages of their education: primary school, secondary
school or university? (Base: All parents)
17Sound foundations
for a successful life
The path to their children to gain from their
university education is that they
important benefit of the university
experience, with this proportion
adulthood become independent (86%), even greater in the emerging
that they learn to be financially economies of Malaysia (88%),
Parents view university as a rite responsible (84%) or that they Turkey, India (both 86%), Mexico
of passage into adulthood for become socially confident (83%). (83%) and Indonesia (81%).
their children. Non-academic While independence is highly
softer skills – such as the ability valued across the world, it is Fewer parents think participating
to live independently, to manage important to an especially high in creative arts (52%) or sports
their money responsibly and to proportion of parents in Indonesia (51%) is important, showing that
socialise with confidence – are (95%), China (93%), Taiwan and organised extra-curricular activities
seen as even more important Mexico (both 91%). are not necessarily required
than traditional academic learning. to foster the independence,
Developing IT skills is important responsibility and confidence they
For more than four in five parents, too – nearly three-quarters want their children to gain from
what is most important for (71%) of parents think this is an university.
Parents see independence as the most important quality students gain from university
86% 84% 83% 78%
Becoming Learning to become Being socially Becoming
independent financially responsible confident knowledgeable about the
wider world
75% 72% 71% 70%
Developing strong Mixing with people from Developing Excelling
leadership skills a diverse range of IT skills academically
backgrounds
Q: How important, if at all, do you think it is for students to gain or experience the following from their university education?
A: Important or extremely important. (Base: All parents)
18 The Value of Education Learning for life47%
of parents think their
child’s generation
faces a tougher job
market than they did
Wider skills for a that a postgraduate degree was
more necessary (21%) for their
with almost half (45%) of parents
ranking these within the top
tougher market own generation. Just over a third three most valuable aspects of
think that there is no difference university in preparing students
Parents see the job market between the two generations in for life after graduation.
as increasingly competitive, terms of the job market (34%) or
regardless of the educational the necessity of a postgraduate Analytical thinking is also valued
stage of their children. Nearly half degree (36%). highly (40% of parents rank it in
think it is harder for their child’s the top three), as is learning to
generation to find a job after In this perceived tougher study independently (41%) and
finishing their education than job market, pure academic live independently (39%).
it was for their own generation achievement is no longer seen
(47%) or that it is more necessary as enough to give students a In contrast, course-specific skills
to have a postgraduate degree to competitive edge: parents expect are seen as less important. Fewer
stand out in the job market (43%). universities to equip their children than three in 10 (29%) parents
with a broader set of abilities. rank this in the top three things
Only around a fifth think the job Enhanced confidence/social that help students prepare for life
market was tougher (19%) and skills are the most essential, after graduation.
19Getting the is working too hard at university,
than that they are not working
(30%) than that they spend too
much time (21%). This is also
balance right hard enough. true of parents in Canada (23%
compared to 17%) and Taiwan
Many parents think students work In Asia and the Middle East, (35% compared to 28%).
too hard and so are concerned this imbalance is particularly
their children do not have enough pronounced. In the UAE, 39% of Of those parents who would
time to develop the softer skills parents think their child spends prefer their children to spend
they need to succeed in the job too much time on independent less time on independent study
market. study at university, compared to at university, over half (56%) say
only 5% who think they do not it is to reduce their stress levels.
Around the world, more than a spend enough time. There is also However, parents also want their
quarter (28%) of parents with a wide gap in Indonesia (36% children to have more time for
children in college or university compared to 10%), Singapore hobbies and interests (46%), to
education feel that their child (30% compared to 10%), India develop social skills (38%) or to
spends too much time on (29% compared to 17%) and gain real-world experience (37%).
independent study outside their Hong Kong (42% compared
taught classes, compared to a to 26%). Conversely, half (50%) of those
fifth (20%) who feel they do not parents who think their children
spend enough time on it. In contrast, parents in France are should spend more time studying
more likely to think their child outside of their taught university
In most countries, parents are does not spend enough time on classes say this is to better
more likely to think that their child independent study at university prepare them for the demands of
20%
of parents with a
child at university
think their child does
not spend enough
time on independent
study
20 The Value of Education Learning for lifethe real world. Achieving the right strong in Taiwan (72%), Mexico In countries where a university
balance to best prepare students (63%), Turkey (61%), Brazil (58%) education is seen as offering poor
for adulthood is an ongoing and France (52%). value by the majority of parents,
challenge for universities. the concern that it does not teach
Parents of children in state-funded applicable real world skills is
education (at any stage) are more strongest in Taiwan (59%), Turkey
Universities: could likely to think university offers (52%) and France (48%). Parents
do better poor value for money (45%) than in Taiwan are particularly likely
do those whose children are to think university does not do
Given the large numbers of being privately educated (37%)4. enough to enhance their children’s
parents hoping that their children career prospects (64%), while
will study to university level, a key Of parents who think that a there is heightened concern that
question is whether universities university education represents academic standards are not high
offer a good return on investment. poor value, nearly half (48%) enough in Brazil (56%), Turkey
believe that it does not teach (47%) and Mexico (46%).
Many parents believe that this skills that are applicable in the real
is not the case – more than two world, while a similar proportion By not equipping students with
in five (42%)3 parents around (45%) think it does not do enough the right skills to stand out in the
the world think that a university to enhance career prospects, and job market, universities risk failing
education offers poor value for a third (33%) think that academic to meet the demands of the
money. This view is particularly standards are not high enough5. modern world.
3, 4, 5
Data excludes mainland China
In many countries, parents think a university education offers poor value for money
72%
63% 61%
58%
52%
46%
42% 42%
40%
37% 36%
33%
28%
22% 22%
16%
ge
an
ico
ey
il
ce
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sia
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AE
a
ia
e
az
di
or
U
ys
ra
iw
rk
an
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ra
ne
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U
U
Br
ap
ala
st
Tu
ve
Ta
Fr
Ca
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do
ng
g
Au
M
on
A
In
Si
H
Q: Do you think a university education in your country offers good value for money, or not?
A: Fairly or very poor value for money. (Base: All parents, excluding mainland China)
2158%
of parents think a
university education
is unaffordable for
most people in their
country
Funding the future
I
Out of reach and Malaysia (38%) think that
university is unaffordable for most
that grandparents will share the
financial burden; however, among
people in their country, with this those with children currently at
Although some parents doubt
figure dropping to just over a third university, only 13% say that
whether going to university offers
(34%) in Hong Kong. grandparents are contributing or
good value for money, many
expected to contribute. Parents
others see it as a pathway to
of university students in China
future success for their children. Who pays? (41%), Turkey (31%) and India
However, a university education
(23%) are the most likely to
comes at a significant cost – When it comes to funding a say grandparents are sharing or
which is not always seen as being university education, typically it is expected to share the cost.
within financial reach. parents who provide the money.
More than two in five parents
Globally, almost three in five More than nine in 10 (95%) (41%) whose children are in
(58%)6 parents think that parents who are expecting their secondary school or below
a university education is children to go to university plan expect their children to contribute
unaffordable for most people to contribute to their tuition towards their own future
in their country. This view is fees and/or living costs. Among university costs, while under
particularly strong in Europe parents who already have a child a third (32%) of parents with
and the Americas, with 79% of at university, the same proportion children currently at university say
parents in France and 71% in the (95%) say that they are currently their children are actually making
UK, USA and Mexico believing contributing or planning to or expected to make a financial
that university is unaffordable. contribute to the cost. contribution. University students
are most likely to bear at least
Parents in Asia feel differently. Almost one in five (19%) part of the cost themselves in the
Only around two in five parents in parents whose children are yet USA (62%), Canada and Australia
Taiwan (44%), Singapore (41%) to reach university anticipate (both 59%).
6
Data excludes mainland China
22 The Value of Education Learning for lifeThe need to save children’s future university costs
through savings, and only 14%
Among parents with children
at university who have not yet
think they will rely entirely on day- saved anything towards the cost,
Parents recognise the need to
to-day income. However, among over half (52%) say they did not
save to help pay for their children’s
parents whose children are have enough money left to do so
university education – but many
currently at university, just over after paying day-to-day bills, while
do not put this into action.
half (53%) are using or plan to nearly a quarter (23%) say they
use saved funds, and three in 10 had just not given it any thought.
Almost three-quarters (72%) of
(30%) are reliant or expect to rely
parents of pre-primary school
entirely on day-to-day income.
children think they will fund their
Parents’ expectations to fund their children’s university costs with savings and investments do not always
reflect reality
72%
63%
57%
53%
30%
23%
19%
14%
Current educational stage of child
Pre-primary Primary Secondary University
With general savings/investments/insurance or specific education savings plan
With day-to-day income entirely
Q: Thinking about the people who may cover or contribute towards your child’s university education costs, where do you think this
money will come from? A: Parents’ contribution from: General savings/investments/insurance, Specific education savings plan,
Day-to-day income entirely (e.g. from full/part-time job).
(Base: Parents who think they will contribute or are currently contributing to their children’s university costs)
23The need to borrow
The struggle to save, and the
difficulty of paying for university
costs from day-to-day income,
leads many parents to seek to
borrow money to fund university
education.
More than a quarter (27%) of
parents of pre-primary school
children who are expecting their
children to go to university think
they will have to take out a loan,
while the same proportion (27%)
of parents whose children are
currently at university have
taken out a loan or expect to
have to do so.
Parents who expect to borrow,
or are currently borrowing, to pay
for university costs recognise the
implications, expecting to spend
on average 6.7 years repaying
the debt after their children have
finished their education. However,
estimated repayment times vary
considerably by country: parents
expect to be paying off their debt
for over nine years in China (9.8
years), Australia (9.3 years) and
Malaysia (9 years), but for only
around four years in Indonesia
(3.9 years), Turkey (4.2 years) and
a child at university say that their
child is actually contributing or
Loans to study
the UAE (4.4 years). expects to contribute.
Parents know their children
may have to borrow money to
Less than a third (31%) of parents
First steps with pre-primary school children
fund their university studies.
More than two in five (42%)
to financial think that their child will save up
parents with pre-primary school
to contribute towards the cost of
independence their own university education.
children think their children
will fund their own university
This mirrors reality, with a similar
Learning to become financially costs through borrowing, as do
proportion (28%) of parents
responsible – which 84% an equal proportion of parents
saying their university age children
of parents believe to be an whose children are currently at
are using or expect to use their
important benefit of a university university (42%).
own savings to contribute.
education – can start with children
contributing to the cost of their Parents are aware that their
Getting a job while at university
own university studies. children’s borrowing may not
is another way for children to
be confined to specific student
fund their university education.
For many parents, the expectation loans, and could also include
Nearly half (45%) of parents of
that children will contribute to general debt such as personal
pre-primary school children think
their own university costs exists loans and credit cards. Just
that their children will have to
before they even begin primary over one in 10 (11%) parents
work, either part time or full time,
school education. More than two of pre-primary school children
while they are studying, which
in five (43%) parents of pre- expect this to be the case, as
is consistent with the 47% of
primary school children expect do a similar proportion (13%) of
parents who say their child is
that, once their child reaches parents with children currently at
currently contributing or expected
university, that child will personally university.
to contribute to their university
contribute to their own tuition costs through their earnings from
fees and/or living costs. However, paid work.
only a third (33%) of parents with
24 The Value of Education Learning for life27%
Parents expect their own and their children’s university debts will
take years to repay
6.7 years
Average
of parents 7.5 years
supporting a child at 9.8
China
university think they 8.0
will need to borrow Australia
9.3
money to cover the 8.9
tuition and/or living Malaysia
9.0
9.4
costs
8.8
USA
9.6
8.3
UK
12.4
India 7.0
6.3
7.0
Singapore
5.9
6.6
Hong Kong
6.1
6.1
Canada
6.7
6.0
Brazil
6.8
5.6
France
Paying it back Data not available
5.2
Taiwan
Parents expect their children to be 6.3
repaying their own university debt
on average for 7.5 years after they 4.6
Mexico
finish their university education. 4.3
In some countries, the timescales 4.4
are less optimistic – parents in UAE
3.6
the UK believe it will take their
children 12.4 years to pay off their 4.2
Turkey
university debts, those in the Data not available
USA 9.6 years, and in Malaysia
9.4 years. Repayment periods 3.9
Indonesia
are expected to be much shorter 3.2
in Indonesia (3.2 years), the UAE
(3.6 years) and Mexico (4.3 years). Parents’ debt
Parents tend to underestimate Children’s debt
how long it will take their child
to repay their university debts. Q: You mentioned that you/your partner are funding or expect to fund your child’s
Those with pre-primary school university costs through borrowing. How long do you expect it to take to pay off this
children expect it will take 7 debt once your child finishes their university education? (Base: Parents who expect
years on average for them to to borrow money or have borrowed money to fund their child’s university education)
repay their loans after graduating.
However, parents whose children Q: You mentioned that your child is funding or expected to fund their university
are currently at university, and so costs through borrowing. How long do you expect it to take them to pay off this
can be expected to have a more debt once they finish their university education? (Base: Parents who expect their
realistic assessment, anticipate it children to borrow money or whose children have borrowed money to fund their
will take 8.9 years. own university education)
25Broadening horizons:
higher education abroad
Increasing More than three-quarters
(78%) rate students becoming
Kong (74%), Indonesia (74%) and
Singapore (74%) would consider
opportunities knowledgeable about the wider the idea. In contrast, only around
world as a key benefit of a half of parents in Canada (51%),
Half (50%) of parents around the university education, while over Australia (52%) and France (53%)
world believe that their children’s half (51%) value the opportunity would consider it.
generation has more opportunity to live abroad and to experience
for study or travel abroad than different cultures. When it comes to postgraduate
their own generation did at the study, an especially high
proportion of parents in India
same age.
When to go, and for (88%), Turkey (83%), Malaysia and
Less than a fifth (16%) say that how long China (both 82%) would consider
this opportunity was greater for sending their child abroad to study,
their own generation, while the Given these benefits, it is not compared with lower proportions
remainder (34%) think that the surprising that over three-quarters in Australia (52%), Canada (53%)
level of opportunity is the same (77%) of parents – including the and the USA (59%).
for their children’s generation as it majority in each country surveyed
was for theirs. – would consider sending their However, parents’ ambitions
child to university abroad for either of an international education
This difference between undergraduate or postgraduate vary according to the age of
generations is strongest in study. their children. Although more
Turkey, where two thirds (66%) than four in five (82%) parents
of parents think there is more Nearly two thirds (64%) with pre-primary school children
opportunity for their children’s of parents would consider would consider sending their
generation, while just over one in sending their child abroad for child abroad to university, the
10 (11%) have the opposite view. undergraduate study, while even proportion is smaller for parents
There is a similar generational more, seven in 10 (70%), would with older children, with less than
difference in France (64% and consider it for postgraduate study. three-quarters of parents whose
10%) and China (64% and 19%). children are currently in secondary
Parents in Asian countries are school (74%) or university (72%)
Parents see important most receptive to the idea of saying they are considering an
experiences to be gained by sending their child abroad for international university education.
students who take advantage undergraduate study. Four in five
of this increased opportunity parents in Malaysia (80%) and
to study at university abroad. nearly three-quarters in Hong
26 The Value of Education Learning for life77%
of parents would
consider sending
their child to
university abroad
Parents’ hopes of an international university education for their children vary with age
82%
78%
74%
72%
Pre-primary Primary Secondary University
Current educational stage of child
Q: Would you consider sending your child to university abroad, for either undergraduate or postgraduate study? A: Yes.
(Base: Parents who expect their children to go to or whose children are currently at university)
2734%
of parents who
would not consider
sending their child
to university abroad
say cost is a barrier
Cost is a barrier not consider sending them to
university abroad, less than a
A similar proportion of mothers
(24%) and fathers (21%) say that
third (31%) say they would like to they would not consider sending
For parents who would not
but cannot afford it, while among their child to study at university
consider sending their child to
parents with children of university abroad, but for different reasons.
study at university abroad, cost
age, this proportion is higher Mothers are more likely to say
is the main barrier. Over a third
(42%). that they do not want their child
(34%) around the world say that
to be so far from home (25%,
they would like to but cannot
The quality of education available compared to 21% of fathers).
afford it, and this proportion is
is also a factor in deterring parents Fathers are more inclined to think
higher still in Hong Kong (40%),
from considering an international it is not worth the money (16%,
Malaysia (43%) and Mexico
university education for their compared to 11% of mothers)
(48%), rising to nearly three in
children. Of parents who would or that it does not deliver any
five in Turkey (59%) and Indonesia
not consider this option, over benefit (15%, compared to 12%
(58%).
a quarter (26%) think that their of mothers).
home country offers a superior
Parents with older children are
university education; rising to
more conscious of this cost
around half in Singapore (53%),
barrier. Of those with pre-primary
Malaysia (48%) and India (47%).
school children who would
28 The Value of Education Learning for lifeWorth paying more than they would to educate their
child in their own country. Around
More parents in China (69%),
Hong Kong (62%), India and
half (45%) would consider paying Taiwan (both 59%) would
The benefits to be gained from
at least a quarter more, while consider paying at least a quarter
studying abroad come at a
nearly a quarter (24%) would more for their children to study at
cost. Four in five (80%) parents
consider paying at least half as university abroad.
who are open to the idea of an
much again for their children to go
international university education
to university abroad.
would consider paying more for it
Parents would consider paying extra for their child to have an international university education
Average 24% 45%
China 39% 69%
Hong Kong 29% 62%
India 33% 59%
Taiwan 33% 59%
Indonesia 32% 52%
Singapore 30% 50%
Mexico 22% 50%
Turkey 28% 46%
Malaysia 22% 46%
Canada 19% 35%
Brazil 15% 34%
UAE 19% 33%
USA 18% 33%
UK 9% 23%
Australia 12% 19%
France 7% 18%
Consider paying at least 25% more
Consider paying at least 50% more
Q: Compared to the cost of going to university in your own country, how much extra, if anything, would you consider paying for
your child to go to university abroad? (Base: Parents who would consider sending their child to university abroad)
29Practical steps for planning
your child’s education
Here are some important insights and practical actions drawn from the research findings, for parents to consider
when planning for their children’s education.
1
Plan for higher ambitions
Half (50%) of parents say a postgraduate qualification is a necessity for their children to achieve
important goals in their lives.
Think about the financial implications of your children staying at university for longer, and have a plan
for meeting these costs.
2
Ask for advice
Around seven in 10 parents who sought advice about their children’s university education say that they
learned about possibilities and options they had not considered (72%) or became aware of barriers and
complications they had overlooked (65%).
Don’t be afraid to seek advice. Make the most of the many resources available to give yourself a better
idea of the opportunities and pitfalls involved in making university choices.
3
Allow for extra
Nearly two in five (39%) parents have paid for additional tutoring for their primary school children.
However, almost one in five (19%) parents who would not consider tutoring say this is due to the cost.
Be sure to allocate sufficient money to support your child’s educational development from the
earliest stages.
4
Encourage independence
More than four in five parents say that becoming independent (86%) or learning to become financially
responsible (84%) are important benefits of a university education. Nearly a third (32%) of children
currently at university are helping or planning to help fund their education through saving, borrowing,
paid work or other means.
Becoming financially responsible is an essential step towards adulthood. Start teaching your children
how to manage their finances from an early age.
5
Save more, borrow less and repay quicker
Parents anticipate that money they borrow to fund their child’s university costs will take an average of
6.7 years to repay. Nearly three-quarters (72%) of parents with a pre-primary school child think they will
use savings to cover their future costs; however, only 53% of those with a child currently at university
are using or planning to use savings.
To minimise the impact of borrowing, start saving early and don’t let your plans get derailed.
30 The Value of Education Learning for life31
The research
The Value of Education is an independent consumer research study into global education trends, commissioned
by HSBC. It provides authoritative insights into parents’ attitudes and behaviour towards their children’s education
around the world.
This report, Learning for life, is the second in the series and represents the views of 5,550 parents in 16 countries
and territories:
■■ Australia
■■ Brazil
■■ Canada
■■ China
■■ France
■■ Hong Kong
■■ India
■■ Indonesia
■■ Malaysia
■■ Mexico
■■ Singapore
■■ Taiwan
■■ Turkey
■■ United Arab Emirates
■■ United Kingdom
■■ United States
The findings are based on a nationally representative survey of parents in each country who have at least one child
aged 23 or younger currently (or soon to be) in education, and who are solely or partially responsible for making
decisions about their child’s education. The research was conducted online by Ipsos MORI in March and April 2015,
with additional face-to-face interviews in the UAE.
Global figures are the average of all countries and territories surveyed, unless otherwise stated. Figures have been
rounded to the nearest whole number.
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves
customers worldwide from over 6,100 offices in 73 countries and territories in Asia, Europe, North and Latin
America, and the Middle East and North Africa. With assets of US$2,670bn at 31 March 2015, HSBC is one of
the world’s largest banking and financial services organisations.
32 The Value of Education Learning for lifeDefinitions
Here are definitions of some of the words and phrases used in this report:
State-funded education Primary school
Educational institutions funded Also known as elementary school.
fully or partially by taxation, and
where places are offered to most/ Secondary school
all children without further charge. Also known as high school.
Private education Vocational college
Educational institutions funded Also known as trade, technical or
fully or partially by charging tuition career college.
fees, and where places are
offered selectively. University
Also known as further education,
Pre-primary education higher education or college.
From birth through to pre-school
or kindergarten.
33The Value of Education programme
Since The Value of Education Key findings included:
programme began in 2014, more
than 10,000 parents worldwide ■■ More than half (58%) of
have been surveyed. parents say that paying for a
child’s education is the best
The research findings have investment you can make.
helped HSBC to understand and ■■ When presented with different
meet the needs of its customers options for supporting their
worldwide. child financially in life, parents
would ideally allocate 42% of
their funds to education, much
The Value of more than for anything else.
Education 2014 ■■ More than half (51%) of
parents wish they had started
Springboard for success was to plan and save earlier for
the first report and represented their child’s education.
the views of 4,592 parents in ■■ The USA is regarded as
15 countries and territories. It offering the highest quality
focused on parents’ attitudes to education in the world, with
education, and their expectations 51% of parents ranking it in
of what education should deliver their top three countries. This
at each stage of their children’s is followed by the UK (38%),
academic career. It also explored Germany (27%), Australia
parents’ feelings towards (25%) and Japan (25%).
privately-funded and international
education, and their approaches
to funding these options.
34 The Value of Education Learning for life35
© HSBC Holdings plc 2015
All rights reserved.
Excerpts from this report may be used or quoted, provided they are accompanied by the following attribution: ‘Reproduced
with permission from The Value of Education Learning for life, published in 2015 by HSBC Holdings plc.’
HSBC is a trademark of HSBC Holdings plc and all rights in and to HSBC vest in HSBC Holdings plc. Other than as provided
above, you may not use or reproduce the HSBC trademark, logo or brand name.
Published by HSBC Holdings plc, London
www.hsbc.com > Retail Banking and Wealth Management
HSBC Holdings plc
8 Canada Square, London E14 5HQ
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