Parents surprised by cost of overseas education

More than half of Hong Kong and mainland parents found the costs for their children studying abroad higher than expected, according to a survey.

Economist Impact, under the Economist Group, surveyed 1,000 parents from high income households between October and November last year - 500 each from Hong Kong and the mainland.

Half the respondents have children who are currently studying overseas and the other half said they are planning to send their children to study abroad.

Almost 70 percent have sent or are planning to send their children to study at overseas universities, while there is also a trend of parents wanting their children to study abroad from a young age as 21 percent of parents want their kids to attend overseas primary and secondary schools.

But 58 percent of respondents said the costs for sending their children to study overseas are higher than expected.

Some 24 percent said it is due to the increases in accommodation costs and living expenses, while 22 percent cited fluctuating tuition fees as another reason.

Rent for purpose-built student accommodation has gone up by nine percent in the United Kingdom, eight percent in Canada and 27 percent in Australia compared to prepandemic levels, according to research by Economist Impact.

Undergraduate tuition fees have also increased in a number of famous universities including Cambridge and Oxford in the UK, which saw a 28 to 76 percent hike in different subjects since the 2019/20 academic year. In America, undergraduate tuition fees have risen by almost 10 percent over the same period in Ivy League schools.

The survey also found that America, the United Kingdom, Canada and Australia remained popular choices for studying abroad, while 16 percent of parents showed interest in sending their children to study in Japan and Singapore.

Sam Lucy, admissions tutor at Newnham College, University of Cambridge said: "People are increasingly thinking from an early age about how to finance the cost of education, and we're seeing [applications from] middle class Chinese families who have been building long-term savings to fund their child's education."

And Edward Moncreiffe, chief executive of HSBC Life Hong Kong and Macau which sponsored the survey, said: "The education sector's inflation and rising costs of living have led to unforeseen additional expenses. Earlier and more comprehensive financial preparation can help mitigate some of the economic, social and emotional challenges identified in our survey."

sophie.hui@singtaonewscorp.com