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Insurer: Parents' education plans fall short

By Song Hongmei (chinadaily.com.cn)
Updated: 2008-01-23 14:45

AXA-Minmetals Assurance Co Ltd, a 51-49 joint venture between Europe's No 2 insurer AXA and China Minmetals Corp, just released its report on education plans, saying most parents have high expectations for their children's futures, but are not prepared financially to support them.

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Beginning in May, 2007, researchers interviewed white collar-parents in Shanghai, Beijing and Guangzhou, who have themselves received higher educations, are now in their thirties or forties, and have monthly family incomes over 12,000 yuan (US$1,636.44). The interviewees each had pre-school aged child or were expecting a child in their family.

The research report concluded 4-2-1 families—those with four grandparents, a couple comprised of two only children, and the couple's only child—the result of China's one-child policy, are willing to invest heavily in their child's education hoping to improve their chances of success.

However, hopes have been dampened by rising tuition fees. The report cited statistics showing education costs in China surged 160.5 percent between 1998 and 2006, up 30 percent averagely every year.

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The full text is available in the January Issue of China Insurance.