Accumulating education for children: which solution is optimal?

Education costs increase, it is impossible not to "see far"

According to forecasts, living expenses and university tuition in Vietnam are on the rise, especially in big cities and private universities or high-quality programs. Many universities, especially financially autonomous schools, have been increasing tuition fees, possibly up to 10% or more per year. Housing costs, including food, accommodation, travel, and other expenses have also increased following the impact of inflation and other economic factors. This puts great pressure on students and their families, many students choose to work part-time to reduce the financial burden on their families.

Although they have just got married, Ms. Nguyen Thi Hien (30 years old, Thai Nguyen) said that she and her husband have considered participating in insurance to both have protection for both husband and wife and have savings to save for their children when they return to Hanoi to study at university, so that the family does not have to worry about not having enough money to rent a house and living expenses for them.

Regularly following information about educational programs, Mr. Ngo Manh Truong (42 years old), head of the finance department of a business in Hanoi, said: "My two children are in elementary school at an international school, with a total tuition fee of about 200 million VND per year. My wife and I plan to send our children to study abroad after finishing high school, so we have to continuously accumulate. At this time, to give my child a good future, I cannot help but plan ahead.

In addition to education, many parents today also set many other goals for their children's future such as buying a house, starting a business or simply supporting their children's expenses in the first years of school. Mr. Dinh Van Nam (36 years old), a civil engineer in Hai Phong, shared that he has opened a savings fund for his children since he was 2 years old. "I don't know what my child will choose in the future: study abroad, start a business or study in high school..., but I want my child to have the right to choose. Now I have savings, and I will have a reserve in the future, said Mr. Nam.

Early accumulation thinking is also becoming a clear trend in the financial behavior of many families. Mr. Bui Dinh Tho, a financial consultant in Hanoi, said: In the past 3 years, the number of parents looking into savings and investment solutions for their children has increased significantly. A noteworthy point is that they have an early plan to have the right savings at the right time when their children need them. Mr. Tho commented that this is a common trend for families, especially young families, with stable finances.

Long-term accumulation

In addition to popular channels such as long-term savings, investment in open-end funds, bonds, buying gold, etc., in recent times, when the insurance market has gradually recovered, this financial accumulation has also attracted the attention of many parents. Unlike traditional investment channels that focus on profits, insurance is both a stable accumulation tool and a financial protection if parents unfortunately encounter risks such as illness, disease, etc.

From that reality, many insurance companies have built products that closely follow parents' long-term accumulation needs. For example, Manulife Insurance Company said it has just launched the product "Green Uoc Mo" - a joint insurance line, focusing on the goal of protecting and accumulating finances for the future of children.

According to information on the corporate website, the product "Green Uoc Mo" commits to a minimum interest rate throughout the contract term, and an additional 1% interest rate for the first 10 years without any binding conditions. In the 10th year, customers will also receive a bonus of 50% of the basic insurance premium of the first year. Regarding protection benefits, this insurance product automatically increases the insurance amount by 5% per year from the 2nd year to the 11th year without requiring a health assessment and without increasing insurance fees. At the same time, every time a parent has another child, the insurance amount is also increased by 5% of the initial insurance amount without needing appraisal and without increasing insurance fees.

Although it has just been launched, this product has received the attention of young families. Ms. Mai Linh Ngoc (34 years old), head of planning department of a company in Ho Chi Minh City, said that she had just participated in "Green Uoc Mo" insurance at the end of July with a fee of 25 million VND/year, for 15 years. She said: "I chose insurance because I wanted to both accumulate and be protected. If there are unfortunate health problems, there will be a source of payment, without affecting the overall finances of the whole family. If everything goes well, this is a stable savings to take care of my children in the future."

Many parents admit that participating in insurance is not only a financial decision but also a spiritual commitment to their children. "Every time you pay the fee, it is a reminder to yourself not to neglect your children's future. When my child grew up, I had prepared an accumulation, Ms. Ngoc shared.