Nearly nine in 10 parents around the world (88 per cent) would consider a postgraduate university education for their child, according to a new HSBC report, ‘The Value of Education Foundations for the Future’. This is almost as many parents as those who would consider an undergraduate education (95 per cent). Parents consider a postgraduate degree as the key to unlocking career opportunities: over two thirds (69 per cent) think this qualification would increase the chances of their child finding full-time employment in their chosen occupation.
Findings from this survey of over 6,200 parents in 15 countries reveals parents in Malaysia (96 per cent), Indonesia (94 per cent) and India (93 per cent), are the most likely to consider a postgraduate degree for their child. Parents who are the least likely to consider this are in Egypt (76 per cent) and France (82 per cent).
Over a third (35 per cent) of parents would also consider sending their child abroad to university. The highest proportions of parents considering this are in Indonesia (60per cent), UAE (58 per cent) and Hong Kong (54 per cent), while the lowest proportions are in Egypt (10 per cent), France and Australia (both 16 per cent). In addition, nearly half (44 per cent) of parents would consider a study abroad programme, with parents in Asia the most likely to consider this type of international experience for their child: Indonesia (58 per cent), Malaysia (56 per cent) and Singapore (53 per cent).
Parents recognise the benefits of an international university education for their child’s future career: better job prospects (40 per cent) and improved income-earning potential (35 per cent) are seen as key benefits.
However, the higher cost associated with an international university education is seen by parents as a barrier to their child studying at university abroad: parents say the higher cost to them (48 per cent) or to their child (34 per cent) is a potential barrier. Parents in Malaysia (64 per cent) and Singapore (63 per cent) are the most likely to say that higher cost is a potential barrier to them. Managing finances between countries is also seen a barrier: a fifth (20 per cent) of parents say the complexity of managing finances between different countries/currencies is a potential barrier to completing an international university education.
The research confirms the importance parents attach to their children’s education
Parents’ ambitions go beyond higher education, with over three quarters (78 per cent) having a particular career path in mind for their child. The most preferred occupations are medicine (16 per cent), engineering (12 per cent) and computer science (eight per cent).
The report also reveals that income-earning potential (35 per cent) and job security (34 per cent) are the main reasons why parents would favour a specific occupation for their child. Parents who would prioritise their child’s future income are in Egypt (52 per cent), Malaysia (45 per cent) and Canada (42 per cent). Job security is seen as the most important reason for preferring a specific occupation for their child by 46 per cent of parents in Hong Kong, 43 per cent in China and 41 per cent in Taiwan.
“The research confirms the importance parents attach to their children’s’ education and how advanced learning can help them in their career prospects. Having the necessary financial support during this phase is very important. At HSBC Malta, we have a variety of products to support one’s education including our HSBC Yes 4 Students package for students from secondary school all the way up to graduates,” said Daniel Robinson, head of retail banking and wealth management at HSBC Malta.
Commenting on these findings, Charlie Nunn, HSBC’s global head of wealth management, said: “In a difficult job market, many parents encourage their children to go into occupations that will provide them with comfortable levels of income and job security, but which also often require a lengthy university education. Many would also consider topping up a domestic university education with a study abroad programme to increase their child’s chances of succeeding in their future careers.
“These ambitions mean higher costs, and parents should have a realistic plan in place for funding their child’s higher education. By saving early and by seeking professional advice when necessary, parents will be better placed to support their high ambitions and support all career opportunities for their children.”