The poor are poor, the rich are rich

Chapter 68 4 Dedicated to Parents—Advice on Educational Finance
Chapter 144 Dedicated to Parents—Advice on Educational Finance
According to the latest survey by the People's Bank of China, children's education expenses rank first among urban and rural residents' savings purposes, accounting for nearly 30%, ahead of pensions and housing.Judging from this data, if you want a baby now, planning for education funding is indispensable.You should start investing in educational finances when your kids are young.

In the process of educational financial management, you must first consider the risk.Generally, the typical education cycle is 15 years. When children are at different ages, families will encounter different risks, and parents must arrange their own investment plans based on these.For example, in the initial stage of the cycle, the financial burden brought by children is relatively light, and parents have a strong risk tolerance, so they can make some risky investments.In the middle and late stages of the education cycle, children's learning costs are getting higher and higher, and the economic pressure on parents is increasing. Conservative products should be increased and the proportion of high-risk investments should be reduced.

In response to the needs of parents, experts suggest that when planning investment, we should first calculate the gap of education funds, set the investment period and set the expected rate of return.The second is to adjust the investment strategy at any time according to the target in the process of practice.

The following is a detailed introduction to two education financial management methods: education savings and fund fixed investment.

1.education savings

It is a time savings deposit with zero deposit and lump sum withdrawal, and the deposit period is divided into 1 year, 3 years and 6 years.The minimum initial deposit amount is 50 yuan, and the deposit amount is an integral multiple of 50 yuan. It can be deposited at one time, in installments or on a monthly basis. The total principal limit is 2 yuan.The interest rate of education savings enjoys two preferential policies. In addition to being exempted from interest income tax, it will enjoy lump-sum deposit and withdrawal interest rates as zero-deposit and lump-sum withdrawal savings, with a preferential rate of more than 25%.

This deposit method is suitable for families with low salary income and liquidity requirements.The income is guaranteed, zero deposits and lump sums can be withdrawn, and a small amount can be accumulated, which is more suitable for preparing for small education expenses.

2.Fund fixed investment

It refers to the business in which investors subscribe for a certain fund product at a fixed time and with a fixed amount within a certain investment period.After the fund management company accepts the investor's application for the fund subscription business, it will deduct a fixed subscription amount from the fund account designated by the investor within a fixed period of time (month as the minimum unit) according to the investor's requirements, thereby completing the fund purchase. Behavior.It is similar to the bank's zero deposit and lump sum withdrawal method.

Generally speaking, regular fund investment is more suitable for working-class people with low risk tolerance, parents with specific financial goals (such as children's education funds, pension plans), and young people who have just left school and entered the society.Corresponding to this is one-time investment, which is the behavior of buying funds at a certain point in time.It should be said that these two investment methods have their own advantages.Generally speaking, a single investment requires a large amount of capital to be invested at one time, and the choice of buying time will have a greater impact on the rate of return.Therefore, single investors need to analyze the market conditions and be able to bear higher risks.For regular fixed-amount investment, because funds enter the market in small amounts in stages, when the price is low, the buying share is more, and when the price is high, the buying share is less, which can effectively reduce risks. For those who have no time to study the market and accurately grasp the entry time For investors, it is a relatively suitable medium and long-term investment method.

In addition, the annual income of fixed investment funds is basically equivalent to the growth rate of GDP, which is about 8% to 10%, which can completely resist the inflation rate. Moreover, this "fixed investment plan" avoids human subjective judgments, and you don't have to care about when you enter the market. There is no need to care about market prices, and there is no need to change long-term investment decisions for short-term fluctuations in the stock market.If you choose to invest for more than 10 years, you can solve a lot of education expenses, marriage expenses, and even start-up expenses when your children grow up.Of course, in order to avoid risks, you can properly adjust the fund holdings every six months or a year, or you can choose several fund companies to spread risks.

No matter how high the cost of education is, as long as you are prepared, you don't have to worry about it.The more sensibly you start financing your education, the lighter your burden will be.Exactly—you can’t eat poorly, spend endlessly, and if you can’t figure it out, you will be poor.As long as you learn more about financial management and think more about education investment, your life will not worry about the arrival and growth of your children.

(End of this chapter)