New research from HSBC reveals that parents around the world (18%) are considering the UK as a top choice when planning for their child’s overseas education, second to only the US (31%). The data comes at a time when Scottish universities are seeing a record number of international students1, which shows a rising interest in locations outside of London and England.
The Quality of Life report surveyed more than 11,200 affluent respondents in 11 markets around the world and was commissioned to explore the anticipated or actual expenses of an overseas education, and to identify the main challenges encountered during the planning and pre-departure stages.
The number of international students studying overseas is set to grow at an average annual rate of 4.2 per cent by 20302 and UK universities alone are expected to see a 46 per cent uptick in international undergraduate applications by 2026.3 HSBC’s data shows that students from Hong Kong, the US and the UAE make up the majority of the UK’s international student applicant pool, with parents from these markets citing the UK as their preferred destination for their child’s international study.
Commenting on the research findings, Sabine Fichaux, Head of International at HSBC UK, said:
“It’s clear that parents worldwide view the UK as a top destination for their children’s higher education – and for good reason. Parents are seeking out destinations and universities renowned for academic excellence, as well as opportunities for global exposure, as they look to set their children for success in a job market which is becoming more globalised.
“We understand the power of a global network, because we have one. That’s why we’re committed to championing the international education aspirations of families around the world by providing them with practical and emotional guidance, the right financial products such as pre-departure bank account opening and StudySurance, and our national network of accommodation partners. Whether their sights are set on a UK education, or they’re UK-based and looking to expand their horizons abroad, we have the support needed to help international students and their parents to navigate an overseas education with clarity and confidence.”
Equally, an international education is an aspiration shared by British parents, with 35 per cent saying they either have a child studying abroad currently or are hoping to send their child overseas for university in the future. When it comes to “where” UK parents are sending their children overseas for study, the US (31%), EU (28%) and Canada (13%) emerge as the top destinations.
HSBC’s study reveals the majority (85%) of UK parents surveyed intend to fund their child’s overseas education, despite only 42 per cent having an education savings plan in place. A further 90 per cent of parents admit to lacking confidence in their financial preparedness as an overseas education for their child can cost up to £188,000 – depending on where, and for how long their child studies abroad – which could represent up to 39 per cent of parents required retirement savings.
Just under half (47%) of UK parents say they would pay for their child’s international education from general savings; two in 10 (20%) would take out a loan, and more than one in 10 (15%) would pay by selling their assets.
On top of expected costs, such as tuition and accommodation, there are additional costs that UK parents are willing to absorb to provide their children with an overseas education. This includes paying for health insurance (33%), paying for flights to visit their child on regular intervals (46%), giving them a separate allowance (43%), and providing them with access to professional financial planning and investing advice (36%).
The majority (71%) of UK parents surveyed would select a university that offers their child the chance to pursue their passions, and would prioritise an innovative, future-focused programme (65%). Additionally, 57 per cent of UK parents would pay more for an academic experience that provides their child with opportunities to travel – suggesting international opportunities trumps prestige.
Other top reasons for UK parents considering an overseas education for their child include:
| Encourage their independence | 14% |
| Provide them with an opportunity for subject specialisation | 12% |
| Provide them with an opportunity to develop an international network | 11% |
| Boost their employment prospects in the destination of study | 10% |
| Build their overseas exposure to improve their competitiveness in the job market | 9% |
| Strength of their academic performance | 9% |
One third (33%) of parents surveyed consider an international education as a way to boost their child’s academic and career advancement; 27 per cent believe it will enhance their child’s future opportunities; and a quarter (25%) believe it will boost their child’s independence and overseas network.
HSBC’s global network, suite of resources and partnerships equip parents and students with the tools to navigate the changing world of international education. To find out more about HSBC’s services available for international students, please visit: https://internationalservices.hsbc.com/study-abroad/students/
The study, conducted by Intuit Research, captures insights from 11,230 affluent aged 25 to 69, possessing investable assets ranging from USD 100,000 to USD 2 million. It was conducted in March 2024 through an online survey and covered 11 markets.
The Quality of Life Report 2024 builds on the 2023 findings, examining changes to Quality of Life across difference generations over the past year. It delves into investment behaviours and attitudes, legacy planning, international education for children, as well as retirement plans and health concerns.
The HSBC suite of products and services, tailored for international customers including international students enables customers to:
*Full 24-hour support is available for Premier customers in Hong Kong, Singapore, Mainland China, UAE, HSBC Expat, Australia, USA and India. Key services are available in the UK and for non-Premier customers. Chinese language support is provided for HSBC Premier customers in Singapore, USA and Australia
