Research by Nielsen IQ for PNB MetLife

Nielsen IQ India conducted a survey on “Financial Planning in the Era of Rising Education Cost’ in February 2023 supported by PNB MetLife. The research explores the needs, influences and barriers for parents planning their children’s education in India.

As families across India grapple with rising costs, this survey reveals parents are spending up to INR 5.30 lacs a year on their children’s education and extracurricular activities and are even willing to sacrifice their lifestyles to pay for it.

Even among those who have invested in an education plan, 72% of the parents are worried if it can meet future financial requirements, highlighting the need for a more comprehensive investment product that can safeguard a child’s education needs even in the scenario of the loss of one or both parents. The research highlights the potential benefits a customized Child Education Plan can offer in enabling parents to secure their children’s future while balancing lifestyle and protection needs.

Some key highlights of the survey include:

• More than half (55%) of surveyed parents said saving for their children’s education was their top financial priority, close to 30% have yet to start planning.
• 67% of the parents surveyed expressed a strong concern about accumulating funds required for their child’s education, citing cost increases on account of inflation and fears of an economic slowdown threatening their income stream.
• More than 1 in 3 parents misjudge the expense they would incur and end up overshooting their budget by ~27%.

Disclaimer: