Majority of parents here are willing to empty out their
savings and go into debt to finance their children’s education even as concerns
grow over cost, according to a HSBC Bank survey.
Foundations for the Future said in its latest Value of
Education report series for HSBC that 57 per cent of the 411 Malaysian parents
surveyed said they were willing to take up loans to fund their child’s
university or college education despite having saved up earlier.
“Parents are willing to make big sacrifices for the sake of
their children’s education.
“They invest time, energy and money — and some even risk
their own financial security — to give the next generation a good life,” the
bank said in a statement.
The report was unveiled to the media today.
The survey on 411 Malaysian parents also saw most of them
willing to sacrifice their retirement savings or health insurance payments to
ensure their kids get a good education.
Eighty per cent of those surveyed said they have planned or
will plan earlier and save up the purpose.
“The reason parents value education is entirely
understandable. Education opens doors.
“It equips young people with the skills they need to
navigate the world and live an independent, fulfilled life and help them find a
rewarding job,” the report said.
This explains why most parents are picky about the career
choices of their children, with majority admitting that they would tell their
kids to take up courses that would give them jobs with the highest pay.
In this category, 22 per cent of parents surveyed believed
medicine was the best option, followed by engineering at 16 per cent and the
civil service at 10 per cent.
Private education has become more expensive in recent years,
with reports suggesting a cost increase of up to 25 per cent.
HSBC Bank previously estimated that the total annual cost of
an undergraduate degree, including living expenses, at around US$13,000
(RM52,800).
Today the bank said Malaysian parents spent an average of
US$8,720 (RM35,000) a year on their children’s education. Those who send their
kids overseas would spend an average RM200,000 per child.
This explains why cost was top of parents’ minds when it comes
to their children’s future, with 61 per cent of respondents saying they were
worried about how it could affect their financial well being.
Lim Eng Seong, HSBC Malaysia’s country head of retail
banking and wealth management, said parents must have proper financial planning
to avoid a situation where they sacrifice their well being for that of their
children.
“By having a financial plan to meet their family’s overall
needs, parents will be better placed to support their children’s studies
without compromising on their own long-term financial goals,” he said.
Source –Malay Mail Online-
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