First of all, we should continue to invest, and don't interrupt easily. As young parents, if you invest too much at one time, you may feel too much pressure. So when we plan our finances, we must do what we can. Too much money will affect the existing quality of life and it is difficult to persist; Too little money will make it difficult to achieve the expected goal. Therefore, I suggest that young parents, when saving for their children's education, had better take out one-tenth to one-fifth of their family income, not more than one-fifth.
Secondly, investment should be safe and profitable. Children go to college at the age of 4 18, and 14 years. So when we invest, we must choose reliable products and reliable companies. There are three products that can be used to fund children's education:
(1) Deposit and withdrawal in lump sum. Banks have deposit and withdrawal services specially designed for children, which have the lowest risk and the lowest income, but the highest degree of security. The longest installment period is 5 years, and the annual interest rate is 3%. So if you want to have 60,000 yuan after 14, you can deposit it in 290 yuan every month from now on and stick to 14. If you need 600 thousand, save 2900 every month.
(2) the fund is scheduled to vote. If you choose a fixed investment fund, you must choose a fund company with a relatively large brand and a variety of funds. It is generally recommended to choose the top ten fund companies. The investment ability and stability of such companies will be relatively high. From the historical experience of foreign countries, we will suggest choosing passive funds for fixed investment, because such funds are less influenced by fund managers and completely follow the market trend. But judging from the large-scale activities in China in the past five years, it is not recommended that you choose passive funds (that is, index funds). I suggest that you choose a fund with a certain historical performance and a fund plate of about 2 billion. Generally speaking, the fluctuation of such funds will be relatively small, and the performance will generally be equal to the market income. You can also choose a new fund to make a fixed investment, and automatically help you increase or decrease your monthly investment according to the market trend to control costs. Take the fixed investment of a smart fund as an example. Since its establishment in 2008, the accumulated net value is 2.0 19 yuan, that is, the average annual income is 18%. Then we can choose this kind of fund. Calculated by annual income 10%, if you continue to invest 165 yuan every month, you will get 60,000 yuan after 14 years; Continue to invest every month 1650 yuan, 14 years later, you can get 600,000 yuan. But this kind of income is risky relative to lump-sum deposit and withdrawal. Because the return of lump-sum deposit and lump-sum withdrawal of 3% is certain, but the return of our fund's fixed investment of 10% is hypothetical and should be based on the actual investment income.
(3) Financial and insurance products. At present, there are many insurance products on the market, called educational savings. If you invest some money every year, you can get some money after n years. This kind of insurance products can first ensure the safety of the principal. Because generally speaking, such products are guaranteed and have guaranteed income. However, different insurance companies have great differences in product income and exit methods. We can only suggest that when making this product, investors must study clearly whether the investment mode and specific collection mode of the product can meet their own needs, and must look at the specific insurance clauses, and must not just listen to the seller's words.
Finally, this fund must be targeted for investment and withdrawal, and cannot be easily used for other purposes. Children's education funds have certain timeliness, and that amount needs to be received at that time. Therefore, when choosing products, try not to choose products with strong liquidity and easy realization. Otherwise, once the funds are used for other purposes, the whole plan will be disrupted.