Around half (48%) of Indian parents fund their child's education from general savings, investments or insurance, says an HSBC report, "Higher and Higher -- The Value of Education".
More than half (59%) of Indian parents fund their child’s schooling from day-to-day income, and almost a third (30%) get the money through a specific education savings or investment plan.
About 89% of Indians fund their child’s education. They are spending an average of US$18,909 on their child's education. The parents make an average spending of $8,552 on elementary education, $4,264 on secondary education and $6,093 on university undergraduate education, says the report.
Many parents are making financial sacrifices, with 89% willing to do so. Sacrifices include reducing spending on leisure activities, working extra hours in jobs and contributing less to their own long-term savings.
Over nine in 10 (94%) parents want their children to undertake postgraduate studies, and of this number, 79% expect to contribute towards funding that too.