EJ Insight » Hong KongToday, 11:18 AM
Parents on average would spend 32 percent of the family income on their children. Photo: HKEJ
How much does it cost to raise a child in Hong Kong?
A recent survey commissioned by Dah Sing Bank found that Hong Kong parents need at least HK$2.8 million to bring up a child, and spend as much as HK$7 million if they want them to study abroad, Sky Post reported on Thursday.
About 56 percent of the parents plan to continue providing financial support after their children graduate from university, including helping them buy a flat of their own.
For the survey, a research firm interviewed more than 500 local parents with at least HK$500,000 in liquid assets.
When asked about their idea of successful children, 70 percent of the respondents said their kids should have a “high salary” or “enough economic ability”.
The parents on average would spend 32 percent of the family income on their children. Expenses include school tuition, extracurricular activities and study tours.
Simon Lee Siu-bo, assistant dean of Chinese University of Hong Kong’s School of Accountancy, said spending HK$2.8 million to bring up a kid in the city is reasonable.
Parents have to spend an average of HK$10,000 a month on school tuition and extracurricular activities until their children graduate from university in their 20s, Lee said.
He said parents need better financial planning if they want to send their children abroad to study.
Media veteran Eileen Cha Siu-yan said her expenses for her son, who is taking up undergraduate studies in the United States, amount to HK$800,000 a year.
But she said she would stop providing financial support once her son finishes college. “I won’t give him the money to buy his home. Children won’t work hard if there is no pressure in life,” she said.
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