Investing
Children's Education Fund: The Complete Guide
Gary Chung（FinKit Editor-in-Chief） · Published：June 6, 2026
From birth to university graduation — how much should Hong Kong parents budget? This guide breaks down costs at every stage and shows you how to hit your education fund target with a monthly investment strategy.
How Much Does Each Stage Cost?
Here are the approximate ranges for education costs in Hong Kong as of 2026:
| Stage | Age | Annual Cost (HKD) | Years | Total |
|---|---|---|---|---|
| Preschool/Kindergarten | 3-5 | $40-80K | 3 years | $120-240K |
| Primary School | 6-11 | $50-150K | 6 years | $300-900K |
| Secondary School | 12-17 | $80-250K | 6 years | $480K-1.5M |
| University | 18-21 | $40-500K | 4 years | $160K-2M |
* Local university: ~$40-100K/year; UK/Australia: ~$300-500K/year (including living costs)
Cheapest path (all local government-aided): ~HK$600K total.
Most expensive path (all international schools + overseas university): ~HK$6M+.
The gap can be 10x.
Education Inflation: Why You Should Budget Double
Many parents estimate future costs using today's school fees — that's the biggest mistake.
Hong Kong education inflation runs at roughly 4-6% annually, far above general CPI (2-3%). At 5% inflation:
| At HK$100K/year Today | In 10 Years | In 18 Years |
|---|---|---|
| 5% inflation | $163K | $241K |
If your child is just born, university fees 18 years from now will be 2.4x today's prices. An overseas university costing HK$200K/year today will cost ~HK$480K/year in 18 years. Four years = HK$1.92M.
How to Save: Monthly ETF Investing Is the Simplest Way
The most common approaches to saving for education:
- Savings insurance: Safe but low returns (~2-3%) — purchasing power eroded by inflation over 18 years
- Bank fixed deposits: Flexible but rates fluctuate (currently ~3-4%) — insufficient long-term returns
- Monthly HK/US ETF investing: Historical long-term returns ~7-10%, strongest compounding effect
Recommended: a monthly ETF + partial fixed deposit mix. The further from the goal, the higher the ETF allocation; as enrolment approaches, gradually shift to fixed deposits to lock in gains.
Real Example: Saving for University from Birth
Target: HK$2M needed in 18 years (overseas university, 4 years).
Assuming monthly ETF investment, 7% annual return:
| Monthly Contribution | Total Invested (18 yrs) | Value After 18 Years |
|---|---|---|
| $3,000 | $648K | $1.31M |
| $5,000 | $1.08M | $2.18M ✅ |
| $8,000 | $1.728M | $3.49M |
HK$5,000/month is enough to send your child to university abroad. The key is to start early, stay consistent, and never pause contributions.
Common Questions
Q: When should I start saving?
As early as possible. Starting at birth, you only need $3,000-5,000/month. Starting at primary school age, you'll need $8,000-12,000/month. Starting at secondary school? You may need $20,000+/month.
Q: How much is enough?
It depends on your goal: local university ~$500-800K; overseas university ~$1.5-2.5M. Use our calculator below — enter your specific situation to see if you're on track.
Q: Should I buy an education fund insurance plan?
Education fund insurance typically offers low returns (2-3%) and locks up your capital. Unless you absolutely need "forced savings," monthly ETF investing is usually a better deal. See our DCA guide for details.
Calculate how much you need to save:
Education Fund Calculator →