Recently, several parents came to me to plan education funds for their children. Some parents also asked me whether they should prepare education funds for their children.
To be honest, with the living standards of most of us now, it is still an exaggeration to say that children cannot afford their children’s tuition fees in ordinary schools when they grow up:
How much can a child’s tuition fees cost in a year?
I can afford it now, and when my children go to college, they will naturally be able to afford it
...
1. Is it necessary to prepare for education funds?
Colleague Xiaoying came to the workplace on Monday and shared with us a short story about her college days. We were all deeply touched after hearing this. Xiaoying's family has always been in business. Before her senior year, the family's business had always been very good. Naturally, it would not be short of her tuition and food expenses, so she had never experienced a lack of money.
It wasn’t until her senior year that her family’s business suddenly encountered problems and she owed a lot of foreign debt. The business was greatly affected, and her tuition and food expenses suddenly couldn’t be renewed. She said: Until her senior year, the tuition fees were not paid.
Tuition fees for each semester and food expenses for each month were often paid in the last month and missed in the next month. For this reason, the counselor urged her a lot, and she also changed from a lively and cheerful girl to a A girl who is introverted and doesn't like to talk. Even for a few months, she had to ask for living expenses from her brother who was still an intern... This incident had a great impact on her, and she became more and more inferior.
Fortunately, she is still working hard, because the brokerage situation at home has deteriorated, and she has since learned to arrange her financial situation reasonably, and then she has slowly overcome the impact of this incident on her.
People who have not experienced these things may have a hard time understanding the impact that cannot pay tuition fees and lack of food expenses on growth. Learning will be affected, and self-confidence will also be affected. This impact may be very long-term.
If time could go back, if her parents had saved a special education fund account for their children who were studying when business was good, this account would only be used for the children's tuition and living expenses. By using it for other purposes, Xiaoying would not have to be affected by the lack of money on her study and life.
My friend Xiaoya has a client named Brother Zhang. He suffered from uremia a few years ago. Brother Zhang is the sole breadwinner of the family and he has not paid all his own insurance. In the late stage of uremia, the doctor recommended a kidney transplant. requires 900,000 yuan at home. Brother Zhang sold his family's house, and his two children who were studying in junior high school and high school also dropped out of school. As a result, his wife, who stayed at home full-time, was forced to go out to find a job.
Of course when you are sick, you should give priority to treatment, but isn’t the child’s education important? Children's right to education should not be affected by the physical health of their parents or the financial status of the family. At least they must have the basic right to education. What did the child do wrong?
If Mr. Zhang had prepared a basic education account for his children when he was able, even if the money in this account could only guarantee that the children would finish high school, I believe it would have been a different situation for the children's lives.
So, is education money important? Is it necessary to save it?
When the situation is good, it is really long-term to be able to prepare for a rainy day.
2. How should education funds be saved?
Children’s education funds must have two attributes: earmarked funds & available when time comes.
is exclusively used to ensure that will not be misappropriated. This money should be saved for children's education and cannot be misappropriated for other things such as buying a house or doing business. Once misappropriated, the child's learning may be affected.
will definitely be available when the time comes. The child is 18 years old. After being admitted to a good school, he will go to college. At this time, the money must be available. You can't tell your children: My child, the family's finances are in trouble now. My parents have lost money in investments and the family has no money. Can you go to college a year or two later? Obviously impossible.
Therefore, the education money saved for children must be in a safe and stable account to ensure that the funds are earmarked for specific purposes. It is certain that the money will be available when the time comes and no losses can be incurred.
Increased lifetime is one of the exclusive ways to plan education funds.
htmlFor a 30-year-old child, pay him 50,000 per year for 10 years. After paying the premium, there will be nearly 600,000 in the account.
Since the child went to college at the age of 18, he has received 60,000 yuan from the account every year. Pays the college tuition and monthly living expenses for the child, which can basically cover it;
When the child is studying for graduate school, he has received 80,000 yuan from the account every year. , if the child has excellent grades during graduate school, this amount of money will be enough for the child to live a more comfortable life as a graduate student.
During the seven years during which the child received higher education, no matter whether the family was rich or poor, no matter what the emergency situation at home was, his education and life security were not affected.
The exclusive account that
originally saved for his child still has 530,000+ left in it. When the child gets married at the age of 30, it can still be used to support his marriage.
This planned money is safe and stable, and it is guaranteed to be there.
Mr. Li’s words:
Parents spent 10 years arranging the two most important things in their children’s lives: education and marriage when their children were young. This can be considered the greatest thing parents have for their children. Planned.
The so-called parents love their children, but this is far-reaching. Parents all over the world love their children in the best way possible.
You may want to read: Is the cash value of incremental whole life fixed?
will definitely be available when the time comes. The child is 18 years old. After being admitted to a good school, he will go to college. At this time, the money must be available. You can't tell your children: My child, the family's finances are in trouble now. My parents have lost money in investments and the family has no money. Can you go to college a year or two later? Obviously impossible.
Therefore, the education money saved for children must be in a safe and stable account to ensure that the funds are earmarked for specific purposes. It is certain that the money will be available when the time comes and no losses can be incurred.
Increased lifetime is one of the exclusive ways to plan education funds.
htmlFor a 30-year-old child, pay him 50,000 per year for 10 years. After paying the premium, there will be nearly 600,000 in the account.
Since the child went to college at the age of 18, he has received 60,000 yuan from the account every year. Pays the college tuition and monthly living expenses for the child, which can basically cover it;
When the child is studying for graduate school, he has received 80,000 yuan from the account every year. , if the child has excellent grades during graduate school, this amount of money will be enough for the child to live a more comfortable life as a graduate student.
During the seven years during which the child received higher education, no matter whether the family was rich or poor, no matter what the emergency situation at home was, his education and life security were not affected.
The exclusive account that
originally saved for his child still has 530,000+ left in it. When the child gets married at the age of 30, it can still be used to support his marriage.
This planned money is safe and stable, and it is guaranteed to be there.
Mr. Li’s words:
Parents spent 10 years arranging the two most important things in their children’s lives: education and marriage when their children were young. This can be considered the greatest thing parents have for their children. Planned.
The so-called parents love their children, but this is far-reaching. Parents all over the world love their children in the best way possible.
You may want to read: Is the cash value of incremental whole life fixed?
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