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According to the latest report in The Value of Education series, Higher and higher, released by The Hongkong and Shanghai Banking Corporation (HSBC), Indian parents spend Rs 12.25 lakhs ($18,909) on their children’s education from primary school to university undergraduate level. Now, if you thought that’s way too high an amount, then you must know that the world average is Rs29 lakhs ($44,221).
The cost can get steeper for postgraduate degrees or offshore university enrolments.
The report has revealed some other interesting facts in the Indian context:
The other key global findings show that 82% of parents are willing to make personal sacrifices for their child’s success. In fact, most of them have given up their hobbies, curtailed their personal time, developed new social circles or changed their working styles to focus on their child’s education.
About 74% of parents are funding their child’s education from their daily income, while the rest rely on general savings, insurance, education plans, inheritance or borrowed money.
Parents also feel that offshore education will enhance their children’s foreign language skills, give them international work experience, exposure to new cultures, increase their confidence and help them to gain independence.
While Indian parents are shelling out lesser than the global average, they are still struggling to afford the school expenses from their existing earnings and resources. A report released in 2015 found that private school fee in India has risen by 150% in the last 10 years and so have other educational expenses related to tuitions, transport, uniforms, stationery, education trips and so on. Parents are cutting down on their spending on vacations and home renovation to meet the education cost.
What’s your take on the education cost in India?