Do you know how much it costs to raise a baby from birth to college graduation?
The latest report on the cost of childbirth in China (2024 edition) answers this question.
According to the report, the average cost of raising a child from the age of 0 to the undergraduate level is680,000 yuan!
For this data, netizens launched a heated discussion.
Many people said: To raise a baby until college graduates, 680,000 is far from enough, at least one million must be counted.
So how did this 680,000 come about?
Let's take a look at the report's estimates of the average cost of raising a child at different stages:
- The average cost of raising a 17-year-old child
Cost during pregnancy
Including card filing, nutrition products, prenatal examination costs and pregnancy preparation supplies, the estimated average expenditure is about 10,000 yuan;
Childbirth and confinement costs
Including hospitalization expenses, vaginal delivery or caesarean section, and the adoption of ** delivery by some mothers, the estimated average expenditure is 150,000 yuan.
The cost of raising an infant aged 0-2 years
It is mainly the expenditure on milk powder and diapers, with an estimated average annual expenditure of 24,538 yuan, a total of 73,614 yuan for three years;
The cost of raising a 3-5 year old child
On the basis of per capita consumption expenditure (24,538 yuan per capita consumption expenditure of residents in 2022) plus an average monthly expenditure of 1,000 yuan for kindergarten or preschool education, the average annual cost of parenting is 24,538 + 12,000 = 36,538 yuan, a total of 109614 yuan for three years;
The cost of raising a child aged 6-14
On the basis of per capita consumption expenditure, plus an educational, cultural and entertainment expenditure of 2469 yuan, the average annual parenting cost is 24538 + 2469 = 27007 yuan, a total of 243063 yuan in nine years;
The cost of raising a child aged 15-17
Considering that high school is no longer compulsory education, and some high school students are living in school, an additional 2,000 yuan is added every year, that is, the average annual parenting cost is 27,007 + 2,000 = 29,007 yuan, a total of 87,021 yuan for three years.
According to the above method, the average cost of raising a child aged 0-17 is about53.80,000 yuan.
2. The cost of raising children during college
The average annual tuition fee of public universities and private universities is calculated at 10,000 yuan, the accommodation fee is calculated at 1,500 yuan per year, and the living expenses are calculated at 2,000 yuan per month, so the annual parenting cost during the undergraduate period is: 10,000 + 1,500 + 24,000 = 35,500 yuan, a total of 142,000 yuan for four years.
Estimated according to the above methodThe average cost of raising children from the age of 0 to the age of undergraduate is 680312 yuan, or about 680,000 yuan.
Seeing this, careful friends may have noticed that the reports listed are generally involved in the cost and approximate level.
And we Chinese parents attach great importance to their children's education.
For example, if you want to enroll your child in various interest classes, go to private schools, or if your child wants to go to art colleges, graduate school, or even study abroad in the future, the cost may more than double.
Cost of Higher Education in Different Regions.
At the same time, many parents' support for their children generally does not stop here, and when the children grow up and start a family, they will also provide their children with such as wedding money, entrepreneurial funds, RV down payment, etc.
If these are also included, the amount will have to be doubled again.
No wonder everyone is saying:To raise a baby, 680,000 is far from enough.
There is even a joke on the Internet: from the middle class to bankruptcy, only one baby is needed
In the face of such a large and predictable expenditure, many parents will want to save some money for their children in advance, especially saving an education fund to keep for school later.
For example, our back-office often receives inquiries about education grants.
So how to save your child's education fund?
Before talking about how to save, it is necessary for us to clarify the purpose of saving education funds, or what is the underlying logic of education fund planning?
Generally speaking, there are two main underlying logics for our education fund planning:
1. Make sure that children have money when they really need it;
2. Maximize the input-output ratio of education funds.
The former refers to the risk management of education funds, and the latter refers to investment returns.
Let's start with risk management.
Children's education is a rigid expenditure, at what age should you go to what stage of school, and there is no room for negotiation in tuition fees, so we must ensure that this money is safe.
Like in the past two years, it has appeared frequently on the InternetThe supply of studying abroad is cut offrefers to the situation that the family is unable to continue to support the cost of studying abroad for their children because of a family fall or a sudden accident.
In these cases of interrupting the supply of studying abroad, a considerable number of children finally had to give up their studies abroad and return to China to start over, which is a pity.
Therefore, the education fund must do a good job of risk control, only in this way can we ensure the smooth progress of children's studies.
Let's talk about maximizing the input-output ratio of education fundsThat is, to use as little principal as possible to leverage the goal of education funds.
Many parents may keep all their children's education funds in the bank, but we have also seen that the bank's fixed deposit interest rate is only a few more than 2 points, and there is a downward trend, while prices and tuition fees are rising.
Keeping money in a bank is equivalent to depreciation, and it is very inefficient to rely solely on this method to save education funds.
Therefore, we also need to use other financial tools to plan the child's education fund to obtain higher returns.
After clarifying the above two points, let's talk about how to save the education fund.
Since we need to balance security and benefits, we usually use itDiversified asset allocation portfolioto plan the education grant.
That is, by allocating different industries, different markets, and different types of assets, the risk of the overall asset portfolio can be reducedWhile pursuing income, keep volatility within the tolerance of the family.
Specifically, the following types of financial instruments are more suitable for everyone to form an allocation portfolio to reserve education funds for children:
1. Currency**, bank savings products
The security is relatively high, and the access is also convenient, but the disadvantage is that the return is lower and there is a reinvestment risk, which is more suitableShort-term education fund planning.
2. Savings insurance products
Incremental whole life insurance
With extremely high security and certainty, it can lock in close to 3% compound interest income for a long time or even for life since the capital is invested, and the income is written in black and white into the contract, and it will be redeemed
Because there will be losses in the early stage of insurance reduction, and the higher the income will be later, it is more suitable for medium and long-term education fund planning.
Participating insurance
The income of participating insurance is composed of two parts: guaranteed income and non-guaranteed income, and compared with increased life insurance, the imagination of participating insurance income will be larger.
In addition, some friends often ask how to choose between the mainland's dividend insurance and Hong Kong's dividend insurance.
In simple terms, if you are:I want my child to study abroad in the future, I have a rigid need for the unique functions of Hong Kong insurance, and I am willing to bear more uncertainty in exchange for higher expected returns, you can consider choosing Hong Kong dividend insurance.
But if you are hopefulPursue greater certainty, or in the future this money is mainlyI want to use it in the mainland, you can consider mainland dividend insurance.
3. **Regular investment
Choose some high-quality** indices for regular investment, such as the S&P 500, CSI 300 Index, CSI 500 Index, etc.
Although there is a certain investment risk in the first place, the risk can be smoothed through long-term regular investment, which can effectively improve the stability of investment returns and win high returns.
The above are some common savings and investment methods that are more suitable for the allocation of education funds.
Of course, it is specific to each person, because the time cycle is different, the education fund goals are different, the financial situation and risk appetite are different, and the actual allocation strategy is also different, so it is recommended that you still do itBased on your own needs and financial situation, make a scientific education fund plan.