A survey, The Value of Education: Higher and higher*, conducted by HSBC in 2017, found that 55% of parents interviewed have set aside funds for education for their children by way of regular savings, investments and insurance plans.

  • Savings

The simplest way to save for your child’s education is to place your funds in a savings account to accrue interest, with a flexible withdrawal period. The earlier you start to save, the earlier you will receive interest returns.

  • Investment

If there are still some years to go before your child starts school, consider investing for higher potential returns, according to your preferences and risk appetite. Some products you could consider:

Fund products

  • Diversifies your investment portfolio
  • Convenient subscription method
  • Professionally managed
  • You can buy, sell and liquidate anytime

Structured investment products

  • Lets individual investors invest in underlying assets generally not accessible to them
  • Pick structured investment products according to your investment goals and risk appetite
  • Full or partial capital protection
  • Education insurance

The investment period for education insurance plans is longer. But returns are comparatively stable and higher than education savings deposits, and it also offers coverage protection. If you have sufficient liquidity, insurance could be a good choice to build up mandatory savings or funds for specific purposes. There are generally two types of insurance plans that offer support for your child’s education:

  • A lump-sum pay-out for your child in the event of an accident
  • An education fund with a regular payment schedule could be suitable if you retire while your child is in university

* The Value of Education report is a research report mandated by HSBC, and is an independently written consumer survey report on global education trends. It explores parental attitudes and behavior with respect to children’s education globally. The opinions expressed are highly authoritative. Higher and higher is the fourth report in the research series, and reflects the opinions of 8,481 parents across 15 countries and regions around the world.

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