In Nigeria, a growing number of young people are pursuing education and opportunities abroad, often with significant financial backing from their parents. While parental support can provide these young individuals with a comfortable lifestyle, it also raises concerns about their financial sensibilities and attitudes toward money.
The Trend of Studying Abroad
The exodus of Nigerian youth seeking education abroad has become increasingly common, driven by frustrations with the local educational system and the pursuit of better opportunities. Reports indicate that over 3 million Nigerians studied in Europe in 2022, with families spending approximately $1.38 billion on international education. This financial commitment often includes not only tuition fees but also living expenses, travel costs, and other associated costs.
Parental Financial Support
Many Nigerian parents invest heavily in their children’s education abroad, believing it will lead to better job prospects and a higher quality of life. This support can manifest in various ways:
- Tuition Fees: Parents often cover the high costs of tuition at foreign universities, which can range from thousands to tens of thousands of dollars per year.
- Living Expenses: Supporting their children’s living costs, including housing, food, transportation, and personal expenses.
- Travel Costs: Providing funds for regular trips home or for family visits.
While this financial support can alleviate immediate burdens for students, it can also create a sense of entitlement and dependency.
Effects on Financial Sensibilities
1. Lack of Financial Literacy: Many young Nigerians who rely heavily on parental support may not develop essential financial management skills. Without the need to budget or manage their own finances, they may struggle with money management when they eventually become independent.
2. Entitlement Mentality: Growing up in an environment where parents provide for all their needs can instill a sense of entitlement. Some young people may expect to maintain a certain lifestyle without understanding the effort required to achieve financial independence.
3. Debt Accumulation: As students transition into adulthood without adequate financial literacy, they may fall into debt traps due to overspending or reliance on credit cards. The lack of experience in managing finances can lead to poor decision-making regarding loans and credit.
4. Delayed Independence: The comfort provided by parental support can delay young adults’ motivation to seek employment or develop entrepreneurial skills. Many students may not feel the urgency to work part-time jobs while studying, which is common in countries with more flexible educational systems.
The Role of Financial Education
To counteract these challenges, there is an increasing call for financial literacy education among Nigerian youth. Parents play a crucial role in instilling financial values early on by:
- Teaching Budgeting Skills: Engaging children in discussions about budgeting and saving from a young age can help them understand the value of money.
- Encouraging Responsibility: Allowing children to manage small allowances or savings accounts can foster a sense of responsibility and ownership over their finances.
- Promoting Open Conversations About Money: Parents should create an environment where discussions about money management are normalised, helping children learn about investments, savings, and responsible spending.
While parental financial support plays a vital role in enabling Nigerian youth to pursue education abroad and enjoy certain lifestyles, it also poses challenges that can affect their long-term financial sensibilities. As these young individuals navigate their paths toward independence, it is essential for families to prioritise financial literacy education alongside support. By fostering responsible money management skills and encouraging independence, parents can help ensure that their children are well-equipped to face the complexities of modern financial life.
By Joseph Johnston
Youth Editor,
Egogonews Hub
