With the recent college admissions bribery scandal, the question pegs how much American families are willing to spend on their children's college prep, test, application fees, and acceptances.
When children reach high school, the race for college preparation kicks into high gear. Various companies and services offer college preparedness packages - ranging from online classes, tutoring, full-service counseling, to one-on-ones. These services have a substantial price tag that can stretch as far as $1,000 to six figures.
Many parents and students have asked us how much do American families spend typically on college readiness, depending on various factors. Today's blog post will focus on how much parents and families spend on their child's dream college.
Across the country, there are families with humble and modest means who are willing to expend to give their kids the best chances, advantages, and opportunities possible. No matter what family students are coming from, the desire to provide kids with a higher education holds a high priority in America.
According to a March 2019 report from IBISWorld, the tutoring and test preparation industry is valued at $1.1 billion dollars. Exam and test readiness services accumulate for 25% of this business.
In a CNBC Millionaire Survey conducted this spring, 750 respondents from the affluent millionaire population helped their children to get into college by some of the following:
Encouraging them to participate in athletics, arts, or extracurricular activities (33%)
Hiring a test prep/college entrance exam tutor (7%)
Hiring a college admissions counselor (2%)
Using a college essay/application service (2%)
A 2017 HSBC survey assessed 15 countries and territories to see parents' financial commitment to their child's education.
The overview showed that the median expenditure on education per child was:
Hong Kong: $132,161
United Arab Emirates: $99,378
Singapore: $70,939
U.S.: $58,464
Taiwan: $56,424
China: $42,892
Australia: $36,402
Malaysia: $25,479
U.K.: $24,862
Mexico: $22,812
Canada: $22,602
India: $18,909
Indonesia: $18,422
Egypt: $16,863
France: $16,708
The analysis consisted of over 8,400 parents who aggregated their consumption on items such as tuition fees, textbooks, transport, and accommodations.
Parents want to provide their kids with the best possible opportunities and choices to excel in life
While it is clear that private tuition and prep services are expensive, many families from different nationalities and income levels continue to devote their finances to their children. Why? 1 in 3 parents believe that their child was not getting the necessary support that they need at their schools, according to EdPlace. Whether it is online tutoring for students or one-on-ones in person, parents want to provide their kids with the best possible opportunities and choices to excel in life.
If you want to learn about proven methods to save money and get your kid to their dream college, see our old article on making college tuition more affordable.
Today's blog hopes to give some clarity on how much a family spends on an average for college preparation services. In spite of variances between levels of spending between nationalities or incomes, making students successful is the prime motivator for families and parents worldwide. If there are other topics you would like us to cover, send us a message on Instagram @seveneducation. We also post daily blog alerts and any 7EDU-related updates!
