A large number of friends around the senior sister have become mothers and fathers. Their financial management methods are very prudent, that is, buying education funds for their children.

What about the education fund?

Is it worth buying?

Next, the senior sister will lead everyone to have an in-depth understanding of the relevant content of education subsidies.

An anxious friend has already posted a simplified version of the article here: "Is it necessary to buy education fund insurance?"

How to choose the right product?

》1. What is education pension? Is it the same as annuity insurance?

Education insurance is also known as education insurance and education fund insurance. It can also be called children's education insurance. Children's education insurance is an insurance based on the principle of raising education funds for children.

Education pension is a type of annuity insurance. Market factors cannot affect the stability of interest rates, and it is one of the mandatory savings.

Educational funds also reflect the effect of forced savings and have a certain protection function. As long as there are idle funds, you can buy annuity insurance now, so that you can prepare a sum of funds in advance for your children's future education.

You can understand that education pension actually belongs to children's annuity insurance. As a part of annuity insurance, the most outstanding feature of education pension is that it can maximize returns without any risks.

However, education pensions are no different from annuity insurance, but not all products may be worthy of our attention.

Friends who hope to avoid the pitfalls are advised to read this article: "Learn this trick and avoid 99% of the pitfalls of annuity insurance." In this way, do we still need to buy education funds for our children?

Let me tell you slowly.

2. Do I need to buy education funds for my children?

Most parents have strict requirements for their children's academic qualifications. More than 90% of the middle class hope that their children can have a bachelor's degree or above, and 62% of them hope that their children can have a master's degree.

There is nothing wrong with the current idea of ????hoping for children to become talented, but as their academic qualifications increase, the education expenditures required will also increase.

Have your parents made any reserves for education funds?

As long as parents already have such requirements for their children, the expenses for their children's higher education should also be reserved as early as possible.

Although the method of depositing money in the bank is sound, the return is very low; if you use the money to sell stocks or funds, there may be nothing left after one or two big falls.

So education funding is really important to us.

Education funds are almost risk-free, and you don’t need to worry about whether you have enough money or not, because education funds can provide stable cash flow and provide sufficient protection for your children’s education expenses.

Therefore, it is very necessary for parents to buy education funds for their children.

So how do you buy education funds?

Please see the key points below.

3. How to buy education fund?

When choosing education subsidies, you can start from these aspects.

1. Certainty. The so-called education fund is a fixed expenditure for a fixed time. It is necessary to receive fixed education funds within an agreed period of time, so that the child's education expenses can be spent normally.

Therefore, for a satisfactory education fund product, the rule is that payment is made for children of the appropriate age, and the amount of payment is determined.

2. Choice of payment period When friends purchase education, be sure to pay attention to the payment period.

People with a fixed income can choose to pay for a longer period of time to reduce the burden on their families.

For people with high but unstable income, it is recommended to choose a shorter payment period, such as single payment, to better plan cash flow.

3. Choice of additional insurance Many education gold products include additional insurance, and these additional insurances are almost all health insurance, such as critical illness insurance and medical insurance.

At this time, the senior sister suggested buying a pure education gold product without additional insurance.