Breaking the bank: Singaporean parents grossly underestimate cost of foreign education, says HSBC

Foreign universities are 83% costlier than local ones.

Most Singaporean parents dream of sending their kids to foreign universities, but an HSBC report showed that majority of moms and dads are grossly underestimating the staggering cost of overseas tertiary education.

According to the HSBC report, 81% of Singaporean parents are considering sending their child abroad to university.
Moreover, Singaporean parents expect to pay on average 48% more for an international education than a domestic one – however, in reality the cost to send their child abroad is 83% higher than attending a local university.

“There is a major gap between parents’ funding expectations and reality when it comes to overseas education and many parents in Singapore might not have considered the additional living expenses and air fare for their children,” said Matthew Colebrook, Head of Retail Banking and Wealth Management, HSBC Singapore.

He added that parents looking to send their children overseas must consider the additional cost compared to a local degree, save early and take into account the number of years that the child may need to be living and studying overseas.

"Parents are planning but it is clear that they have underplayed the goal and risk falling short," Colebrook said.