25% of UK parents regret not saving earlier for their child’s education and 20% say they wish they had saved more, according to new data.
It seems that more than 70% of parents contribute towards the cost of their child’s education, at a “rich mix” of fee-paying schools, colleges or university. Despite this, less than 50% those questioned in research by HSBC said they had started thinking about these costs before their child had started primary school. This compares to 60% of parents in the rest of the world.
20% of the British parents interviewed said they would be willing to cut back on holidays to fund their child’s education and 14% said they would work longer hours to keep up with education costs. Nearly 75% of parents said they relied on day-to-day income to fund their child’s education.
The research report states almost 50% of UK parents admitted to not knowing how much they were spending on their child’s education. This was the highest proportion of any country in the survey; the global average was 22%.
Many parents, it seems, just don’t know how much they are spending on education – even when the core fees are met by the local authorities.
The report said that for parents in the UK with a child in paid-for education can spend about £128,600 over the course of primary, secondary and tertiary education.
It seems from the report that parents in Asia are leading the way in terms of planning ahead. More than 50% of parents in China said they funded their child’s education through general savings, investments or insurance and more than 40% through a specific education savings plan. In contrast, fewer than one in 10 parents in the UK (5%), Australia (8%) and Mexico (8%) choose to fund their child’s education through a specific education plan.
The research report said that in nine of the fifteen countries surveyed, paying for their child’s education is most likely to be parents’ biggest financial commitment, above others such as mortgage or rent payments and household bills.
The research causes pause for thought for those who may be considering how to proceed with the various options available regarding the education of children and grandchildren.
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