High Proportion of Households Prioritising Extra Tuition for Their Children

Tweet: More than 2/3s of #AsiaPacific #parents are spending on enrichment classes for their children – #MasterCard survey http://bit.ly/Zcm3AB

Singapore, 10 April, 2013 – Two thirds of households in Asia/Pacific are spending on enrichment classes for their children such as academic tuition, learning a foreign language and public speaking on top of regular school fees, according to MasterCard’s latest survey on Consumer Purchasing Priorities – Education.

The findings are taken from research conducted across 27 markets within Asia/Pacific, Middle East and Africa between 7 November 2012 and 2 February 2013. The report for the Asia/ Pacific[1] region included interviews with 7,678 respondents from 16 markets who were asked questions about their education spending priorities. The survey and its accompanying reports do not represent MasterCard’s financial performance.

Key findings

  • Just over two thirds of Asia/Pacific consumers save regularly for their children’s education and on average, this takes up 14% of their monthly household income. The highest market is Myanmar at 18%; the lowest is New Zealand with 8%.
  • More than two thirds of households in Asia/Pacific spend on enrichment classes: the majority of children in China and South Korea are enrolled in learning a foreign language, while markets such as Australia, New Zealand and the Philippines place more emphasis on sports.
  • More than half of parents in India (54%), Taiwan (52%) and Thailand (52%) are spending on extra tuition classes for their children, closely followed by Malaysia (46%), Singapore (45%) and Bangladesh (45%). Chinese (53%) and Korean (50%) households were more inclined towards foreign language classes. More than 50% of respondents from Hong Kong preferred their children to learn a musical instrument.
  • Overall, a third of Asia/Pacific consumers intend to take up an educational course in the next year – highest in China (53%), South Korea (50%), Malaysia (44%), Thailand (43%), Hong Kong (41%), and Singapore (38%), and lowest in India (8%), Indonesia (12%), Japan (14%) and Vietnam (16%).

An Asia Development Bank report into private tutoring last year showed that spending had grown in Asia in recent years. In Hong Kong, more than US$255 million was spent on private tutoring for secondary school pupils in 2011. In Japan, families spent US$12 billion in 2010 on private tutoring.

“Education is a vital part of the family budget – a large proportion of households are saving specifically to support their family’s educational needs,” says Georgette Tan, group head, Communications, Asia/Pacific, Middle East & Africa, MasterCard.

“There are some interesting trends to emerge here: a lot of families intend to take up a course this year and the majority is spending on enrichment classes, which is additional spending on top of school fees. This does reflect the growing pressure that is put on children to perform academically across the region. Above all, however, there appears to be little to differentiate how people view education as a critical part of their household spending, in both emerging and developed markets.”

Children’s Participation in Enrichment Classes in Asia/Pacific

Asia/ Pacific

AU

NZ

CN

HK

IN

ID

JP

MY

PH

SG

KR

TW

TH

VN

BD

MM

Tuition on academic subjects

32

7

9

36

40

54

17

29

46

14

45

33

52

52

0

45

35

Sport (e.g. soccer, swimming, etc)

28

36

43

38

39

16

20

23

36

33

31

28

17

33

9

44

4

Foreign language

24

6

8

53

38

10

15

16

17

5

8

50

39

43

40

4

23

Musical instrument (e.g. piano, violin, etc)

22

14

15

41

52

15

1

17

32

16

24

32

31

33

9

18

1

Art

15

6

4

32

24

15

4

5

17

10

14

15

17

20

6

41

2

Public speaking

5

3

2

7

3

17

1

-

8

2

7

2

1

7

2

3

1

Others

8

9

12

5

5

2

27

7

10

5

9

10

19

2

4

1

2

 

About MasterCard

MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Conversations Blog and subscribe for the latest news.

Contacts:

Georgette Tan, MasterCard Worldwide, georgette_tan@mastercard.com, +65 6390 5971

Robert O’Brien, Weber Shandwick, robrien@webershandwick.com, +65 6825 8064

 


[1] Thailand, Bangladesh, China, Japan, Korea, Australia, Malaysia, Myanmar, New Zealand, Taiwan, Vietnam, Hong Kong, Indonesia, Singapore, IndiaPhilippines.