Children Education Fund Financial Planning

In the era of knowledge economy, parents of each family pay much attention to the education of their children. In recent years, the children’s education expenditure has become a large part of the family’s total expenditure. The fulfillment of the children’s educational goals requires huge sums of money. Therefore, the scientific and rational financial planning of children’s education expenditure has important practical significance to the children and the family and even the whole society.In this paper, firstly, through the review and analysis of the development of the children’s education expenditure financial planning in foreign countries, and comparing it with the development status of the children’s education financial expenditure planning in China, we tease out the successful experience of the children’s education expenditure financial planning in foreign countries and existing shortcomings in China. We also analyze the risk and return of several financial instruments applied in children’s education expenditure planning. Then, combined with the life-cycle theory, portfolio theory, the time value theory as well as financial goals of different families, we summed up the investment strategy matched with the educational goals of different types of families. Finally, this paper takes a typical family’s education expenditure financial planning as a case, calculates the children’s education expenditure, put forward the family’s financial planning scheme of education expenditure and its corresponding investment strategy. The case study shows that, the education expenditure financial planning can contribute to the smoothing of the education expenditure, therefore fulfill the children’s education goals.