Let’s talk to you today about spending money on children~
When it comes to children, people will unconsciously think of the word “gold-eating beast”, and this is also the main reason why people now have fertility anxiety~
Because Once it is related to children, they lose their rational judgment and want to spend all their money on their children.
I am also a mother, and I can especially understand the love for children~ But since learning about family wealth management, I have learned how to spend money for children rationally~
First of all, we divide the money we need to spend on children into It must be The money spent and is money spent because of love~
The money that must be spent is the money that must be spent to raise a child according to the law~
includes the food, clothing, housing, transportation, and educational support provided to the child before the age of 18~
Needless to say, food, clothing, housing, and educational support On the other hand, our country has nine years of compulsory education, and the tuition for public high schools is about 1,000 yuan per semester, and the tuition for undergraduates at public universities ranges from 5,000 to 8,000 yuan~
All in all, the average family can easily afford it~
It is really affordable for everyone. What is unaffordable is the money spent because of loving children. ~
As the saying goes, parents love their children for far-reaching reasons~
I think parents all over the world have the same love for their children: they hope that their children will grow up healthy and happy, accept A good education has the ability to gain a foothold and develop in society~
Then this includes the two most important things: One is health, and the other is education. We need to plan for our children in advance~
In my opinion, health More importantly, the body is the foundation that makes everything possible. I often tell my children that the body must come first at all times. When other things must be sacrificed at the expense of health, we must Give up decisively ~
Investment in health includes two aspects:
One is the cost of maintaining health. For example, I started spending a lot of money on tuition fees to study Chinese medicine for my children ~ I will also help him do it in daily life. Conditioning~
The second is the cost to restore health, that is, once a child gets sick, if the medical level allows, there must be enough money to help the child recover~
For example, after the child is born, one elder and one child are insured~For example Buy commercial medical insurance and critical illness insurance for your children. If your children get seriously ill, you can treat them without worrying about money.
I always see news about raising money for children on Shuidichi. Every time It hurts so much to see it. But I can’t help but want to blame these parents for their irresponsibility~
Let’s look at the investment in education
If your child does not study abroad before college, then the money for education starts from high school, and the cost of high school is actually Very limited, the stage where you really start spending money is when you start college.
is about 18 years after the child is born.
So if you want your child to go to college, you want to invest more calmly in . You need to plan for your child in advance. Whether the child plans to stay at home or abroad, this cycle remains unchanged ~
This education fund must be spent at this stage. Money cannot be put forward or postponed, and it cannot bear any risk. I have also mentioned in previous articles Why should I save education funds for my children
Because of this feature, when choosing financial tools, you must consider profitability on the basis of safety, and liquidity does not need to be considered, as long as You can use it when your children go to college ~
And in Family Wealth Management - "Financial Management Impossible Triangle " helps you choose the right financial tools In this article, we can see that it meets the requirements of high security and relatively high There are two types of instruments with characteristics of low income and liquidity: annuity insurance and treasury bonds.
For example, you can choose to buy an education annuity insurance with a guarantee period of about 18 years. The insurance is compound interest-bearing, and it can completely beat inflation in 18 years. After the 18 years expires and the child needs college tuition, the money can be withdrawn in installments.
The second option is treasury bonds, which are backed by national credit and have higher interest rates than bank savings. You can buy long-term Treasury bonds and redeem them at the end of 18 years. Of course, this should not be easy to buy ~
This money is prepared, and a large part of the investment in the child's education has been basically completed.
At this time, you may tell me that this is only a very small part, because I also need to buy a school district room for my child, and I also need to attend various interest classes for him. After all, there are a lot of parents around me who study in their children's interests every year. The cost of the class is only 100,000~
This is actually a step up. Whether to spend this part of the money is a matter of opinion and based on your financial foundation~
In my opinion, many parents who enroll their children in classes do not I don’t know why my children are registered ~
Many family members just see other people’s children signing up. If I don’t register, I will be anxious. I am worried that my children will lose at the starting line ~ I don’t care whether they are suitable or not, and most of the results are It is because the child cannot continue after persisting for a period of time, and there is no gain except making the child more disgusted~
There are also many parents who have clear goals for enrolling their children in classes, but this goal is not based on the children's own needs, but on the children's own needs. It is the unfulfilled wish of parents. And this ultimately leads to a lot of pressure on the child. The child could have chosen his life path according to his own talents, but in the end he was forced to become a tool to fulfill his parents' ideals.
Therefore, I want to avoid spending this money on my children. The important criterion is whether it brings more possibilities to the children.
For example, the school district housing, because the school district’s enrollment rate has increased, the child’s future academic background and The resource circle is wider, and you can invest within the scope of your ability ~
After planning for health and education, if you are financially well-off, you can consider buying a house for your children, getting married, or even providing for retirement ~ Please Note that these are after the child’s health and education~ Because I was born in a rural area, I know that the order of rural parents’ investment in their children is to give priority to buying a house and getting married for their children, and almost never consider the investment in their children’s education~
Parents’ investment in their children Love is infinite. No matter how much money is spent on children, it is not enough, but I say that rational investment in children must have an upper limit~
There should be an upper limit on spending money on children
First, after completing the laws stipulated by the country After having to invest, if you want to make some additional investments ( such as the investment in education and health above), it is recommended to put yourself and your partner first, followed by your children.
Many parents invest most of their family money in the growth of their children and neglect themselves. For example, before their own pension problem is solved, they make early plans for their children to study abroad or to buy a house or a car for their children. In the end, they may end up providing more for their children. Adding to the pressure, children need to bear all the burden of providing for their parents in old age.
Second, try not to invest more in your children than you are capable of. For example, housing in a school district can indeed increase children's school choices, but it requires high financial resources. If it affects the normal quality of life at home, I do not recommend investing in it.
The third issue is educating children. My suggestion is that your investment in your children should not exceed the average level of your children's peers. Don't let your children think that their parents are rich, or that even if they don't work well, they can rely on their parents.
Specifically, when your child makes a request to you, you must clearly tell him that the investment of parents is limited. For example, if your child wants to buy a certain toy, and you think the toy costs about 100 yuan, you can give the child the money and let him buy it himself.If there is a small amount left, let the children use it as they wish. If it is not enough, this is a good opportunity for you to educate your children. You can not buy it yet, or you can use the money you save every day to make up for it.
You see, if you spend money on your children rationally, raising children is actually not that scary. The reason why you feel like a scourge is because there is no principle of maintaining a reasonable upper limit.
Having said my point, how do you spend money on your children? Welcome to communicate with me~
