Korean Parents Spend Too Much on Education

Korean parents spend around two times more on childcare and education than they believe “appropriate.” This means that Korean parents squander money on children’s education due to fierce competition even when they know they are spending too much.

As well, all income brackets are hesitating to have more children due to the high education cost.

○ Escalating childcare and education costs

The Korea Institute for Health and Social Affairs presented its suggestions on the issue to the Ministry of Health & Welfare and Family on Wednesday in a report entitled “Research on the Effect of Childcare and Education Cost on Childbirth.”

The institute surveyed 1,500 married women aged between 25 and 39 through the research firm “Research and Research” from March 17 to 28.

It is the first time for the government to compare the amount of money actually spent on childcare and education with the amount that is considered by parents as appropriate.

According to the report, parents with preschoolers spend an average of 308,000 won per child per month to pay for nurseries or hire nannies. It is 1.9 times larger than 160,000 won, the amount considered by parents as appropriate.

Also, parents with preschoolers spend 323,000 won to pay for kindergartens per month, far higher than the 158,000 won they considered appropriate.

The gap between the amount of actual spending and the amount considered appropriate does not narrow with a child’s growth. Parents with grade-schoolers spend 325,000 won on average per month, 1.8 times larger than considered appropriate; those with junior high school students spend 417,000 won, 1.9 times larger than considered appropriate; and those with high school students spend 497,000 won, 1.9 times larger than considered appropriate.

○ “I will have more babies if the cost of education drops”

Regardless of income level, the parents surveyed said they felt burdened by childcare and education costs. In the monthly income of 2 million won or less bracket, 77.6 percent of parents said “yes” they felt burdened, while 73.6 percent of parents in the monthly income of 4.91 million won or more bracket also responded “yes.”

In the same survey, 44.1 percent answered that they were willing to have more children if childcare and education costs fall to an appropriate level. Also, 23.9 percent of the respondents said they would have more children if education costs for high school students dropped to an appropriate level. In sum, the monetary burden accompanied with childcare and education negatively affects birth rate.

Shin Yun-jeong, a senior researcher of the institute, said, “In order to raise the birth rate, the government should expand its monetary support for childcare and education beyond the low-income level to the middle-income level. Also, it should improve the quality of public education so as to cut the cost of private education.”

legman@donga.com zozo@donga.com