It’s easy to get overwhelmed by the sheer amount of data when flipping through the pages of our annual school choice guide. The range of tuition, school size, etc vary so drastically. We were curious what the average was, so, with no further ado, here’s the average international school in Beijing.

Note: The data is based on the information collected in the current issue of School Choice Guide.

Number of Students (K-12): 1,433

The student body size of Beijing’s international schools vary pretty drastically. The smallest school has just a few hundred while many larger ones has thousands of students. Does that mean one is better than another? Definitely not! Check out our article on P. 22 for more info.

Class Size (K-12): 22

Scholarship: 68%

After Covid-19 many families faced tougher financial decisions. Compared to pre-Covid, we’re happy to see the percentage of international schools in Beijing that offer scholarships (whether they be academic or financial) increase. Before moving on from your choice school because of financial reasons, check they’ve recently changed their policy on the matter. As our info shows, many schools in Beijing have decided to offer prospective students assistance.

Additional Help Offered:67%

ANNUAL TUITION

One of the main deciding factors when it comes school choice is the price. Interestingly enough, the tuition prices of the schools can range from RMB34,000 per year to as high as RMB300,000+ per year. Though tuition price alone can’t determine the quality of education that your child will receive, we still think it’s interesting to put into perspective just how much the average student is costing their parents in education each year.

Kindergarten (RMB 178,214) =

That’ll get you 464 tickets to Universal Studios Beijing.

Elementary (RMB 203,717) =

That can get you a two night staycation at The Drake in Chicago in their 1,500 square foot suite where Princess Diana stayed during her trip in June of 1996. The package also includes a three course meal that’s an exact replica of what she ate while at the hotel.

K-12 (RMB 233,717) =

That’s about the price of a BMW X1.

High School (RMB 186,280) =

That’s about the price of 2 Hublot Big Bang Black Magic Chronograph 44mm watches.

Images: Pexels, Wikipedia, Hublot, BMW

This article appeared in the jingkids 2022 School Choice Guide issue

Images: Pexels

Money management is a skill, a vital one. But too often we delay giving even a basic understanding of money to kids. For some parents, it’s just not something they ever think about, while for others it’s a conscious choice. They want their kids focused on school or to avoid the stress that so often comes with finances as long as they can. That’s all admirable but in my opinion, it is a missed opportunity on multiple levels.

For one, money is a lot less stressful when you understand how it works. Once you realize it’s a tool, not a magical commodity, you have a modicum of control. Two, numerous studies published in outlets like CNBC and Forbes demonstrate a positive correlation between children who receive financial education and lower debt rates, higher savings, and overall, more financially secure adulthoods. Three, financial literacy is a life skill. Just like cooking, doing laundry, or time management, eventually, you need to learn them. So why not start early? Below is my simple plan for instituting finance 101 into your home. This is appropriate for kids as young as 5 and can be adjusted as they get older.

Money management can be divided into two basic buckets: making it and spending it.

Making it: Remember how we said money is not a magical toy brought by Santa Claus? Teaching that lesson starts by letting kids earn it, just like adults do. Growing up my allowance was directly tied to my chores. Each chore had a value and doing them earned me that amount at the end of the week. If I didn’t get my chores done on time my allowance would reflect that. That is ideal for younger kids. Older kids can and should contribute to the household, they consume resources and should thus do chores. In my family, allowance stopped at age 12 because my parents called completing those tasks rent – another good lesson because I began to equate my chores with money. Instead, we were taught the art of the side gig. School and chores came first. But babysitting, mowing lawns, shoveling snow and walking dogs were all appropriate ways to make a little extra. When I turned 16 and wanted to drive, my parents insisted I pay for the insurance, so they let me get a “real job” – one where taxes were taken out and someone who didn’t love me and, frankly, didn’t care if I was having a good day or not was managing and monitoring my work.

Every family is different and will have different rules for how they pay out an allowance, or when it’s okay to get a job, but tying a child’s work to their money is an important first step in understanding money as a resource that can be renewed. It gives money value and demystifies the earning process so it’s not such a shock when they get older. That’s a confidence builder. I put in the effort and I now have a resource. When I need more resources, I can get them through my work. Obviously, the real world is not so straightforward, and finding and keeping a job can be a struggle. But you need to teach a basic concept before you can teach the nuances. Remember, they are 5!

Spending it: Let’s talk about bucket two. Now that your child realizes money has value we need to manage how we spend it.

My parents subscribed to the 50/25/25 method. 50 cents on every dollar I earned was mine to spend however I wanted, 25 cents went into savings, and 25 cents was earmarked for the charitable cause of my choice.

The first two sections are self-explanatory. Saving is an important habit to get into. Americans in particular are terrible at it and tend to spend far more than they save. Getting into the habit of having a safety net for unforeseen accidents has served me well over the years. The first time I remember needing to use my savings was at the age of 10, when I accidentally lit the linoleum in the kitchen on fire (yup, that was a fun day) and had to pay to have it replaced. But over the years that accrued safety net has been a lifesaver in both the literal and figurative sense, especially those first few years out of college.

Spending half is also pretty obvious. We all want things and experiences and money is how we acquire them. Kids should be able to go to the movies with their friends or buy a new toy or nail polish from time to time. Knowing they earned the money that buys it is a way to instill independence and good decision-making.

The last 25 percent can be controversial. I know many people who oppose forced philanthropy in children. And I understand their reasoning. But I will always be grateful to my parents for insisting on charitable giving.

Here is why:

Gratitude: When you see what others don’t have, it brings an awareness of the good things in your own life. Grateful people are overall healthier and happier because they are more content with what they have. Ambition is great and should be fostered to a point, but it should also be balanced by gratitude.

Empathy: Giving is an act of empathy. We see the needs of others and rush to fill them. By asking your child to decide which charity their money goes to you are asking them to observe the needs of others and then act on those observations.

Confidence: By providing for others your child is learning they are capable of eliciting change. That is a powerful and positive confidence boost.

Empowerment: Kids are part of the community, but so often they don’t getw to have a direct effect on it. We don’t let them vote, make major decisions, or even set their own schedules. Nor should we most of the time! But that doesn’t mean they aren’t important. Allowing kids to give back tells them that they have something to offer the world. It tells them that their actions matter and have an impact. People who think they matter make very different decisions for their lives.

Security: It’s counterintuitive but giving things away is an act of security. It tells kids that they have enough to safely let some go and that more can be earned. That’s a powerful mental state. When you feel you have enough and the ability to make more, your decisions come from a place of facts, not fear.

I will never forget how proud I was the first time my chubby 5-year-old fist dropped a quarter in the collection plate at church or the way it felt to put a gift I had paid for in the Toys for Tots box when I was a preteen. It made me feel connected to my community, which was especially important for an expat kid who moved around a lot, and I truly believe it set me up for a more emotionally balanced financial future.

This article appeared in the jingkids 2021 November-December issue

Many expats come to Beijing to make money and save.  But we wondered what does everyone do with what they earn? We talked to four disparate Beijing families, who shared with us a usually private part of their lives: finance and disposable income management.

The Balinas Family
Pediatrician Rocyl Joy and stay at home dad Timothy John Balinas and their 18-month-old son Elijah John are from the Philippines and have been in China for three years.

Despite a higher salary, the Beijing lifestyle also requires greater expenses: for example, the rent here for a year is comparable to the cost of purchasing a house in the Philippines. Still, Rocyl and Timothy manage to save around 10 to 20 percent of their income, planning to keep it for their son’s education. They also help relatives in emergencies, and, when asked about her opinion on family loans, Rocyl says she prefers to keep it gratuitous. A large part of their family lifestyle is the Christian faith. On Sundays, they fellowship with one another, their friends, and their church, and give a ten percent tithe to express thankfulness and faithfulness.

Rocyl rates her finance literacy at 8 out of 10 points. She admits that her family’s lifestyle is pretty simple. “I would like to have my money ‘working’, but I don’t know how to do that, so I prefer to just keep it in a bank account,” she says. They almost never spend on extravagant purchases, but neither do they skimp on important expenditures. Their future plans are still uncertain: international schools in Beijing, even with company discounts, are expensive, which may become a problem when Elijah gets older.

“We came from a developing country, and here in China it is an opportunity for us to earn much more than in the Philippines,” adds Rocyl. Philippine families usually live with many generations under one roof, with the children staying with their parents until marriage. In Chinese culture, a child working while studying is considered to be a sign that their family can’t provide for their essential needs. Though Rocyl says no one would be against her child wanting to work, once he starts, it’s a good idea to make him contribute to some household costs, like electricity and phone bills.

The Park-Chua Family
Many companies require expats to sign agreements saying they won’t buy cars or property in China, and be ready to move out to another place at four weeks’ notice – which may cause problems for families with kids already enrolled at school or kindergartens. However the compensation sometimes includes accommodation and insurance packages, allowing the family to save up to 65-70 percent of income. Young Bae Park (South Korea) and Jaclyn Desiree Chua (Malaysia), and their children, Leann (age 3) and Lina (1), just moved back to Beijing, sent here for a second time by Park’s company.   Park uses his corporate finance experience to divide the family’s money resources between Korea, the USA, China, and the Philippines. In addition to investing in stocks, the family also owns a restaurant.

“A few years ago people in China invested in state-owned enterprises, and that all paid off, but traditional spheres are not that profitable anymore,” notes Park. Other reliable sectors in the Chinese economy have become the new mainstream, including gaming, robotics, education, infant products, organic food, and delivery markets. Startups in China are a high-risk investment choice, and therefore might be a bad idea for a family with small kids preferring stability. Chua says, “I have a friend who opened a small startup here with a Chinese partner, and in the end the business was taken over.”

On weekends the family meets with friends and goes to church. Chua enjoys visiting baby cafes, covering them as a freelance blogger afterwards. They travel a few times a year, going to friends’ weddings or visiting relatives. Part of their disposable income goes to building a house in Korea where they’re planning to live after retirement, and additional savings are intended to contribute towards paying their children’s college tuitions.

The Lyu Family
Stas and Eleonora Lyu and their daughters, Angelina (15) and Evelina (7), are a Russian family that has lived in Beijing for eleven years.  Stas is a teacher at an international school, and his wife works from home. Angelina speaks three languages fluently: Russian, Chinese and English, while Evelina also knows Korean. The multilingual education opportunity in a fully international society is among the main reasons they’re still living here.

“The Beijing property market has changed a lot in the last ten years,” says Stas. “Renting prices skyrocketed, even though salaries remained almost the same, and the percentage of income that goes to rental needs tripled,” he adds. Now the same agreeable family place that was available for RMB 2,000 has upped to RMB 6,000.  “If ten years ago I knew how high the property market would rise and if I had enough money, I’d definitely have invested in it,” Stas says regretfully.

Getting a loan from QV Credit is not too complicated, QV Credit are a loans company based in Singapore. But, to get a loan from a bank to purchase property is difficult for foreigners and almost no one does it. Most of their family income goes to international education. After apartment rent and groceries, they tend to save around 20 percent of their total income. Health insurance is not included in their monthly expenses, as they found it’s cheaper to pay each time a hospital visit is needed. Furthermore, considering the RMB to be a safe currency, they prefer to keep savings in it. “Both me and my wife have a lot of relatives back home, so presents to everyone and tickets for the whole family for a visit to a hometown once a year eats most of our savings,” Stas tells us.

Stas and Eleonora discuss finance management with their kids, telling them the different family expenditures. They encourage their elder daughter to work during holidays. This past summer, she taught English in their hometown; this experience helped her understand labor value.

The Barry Family
Sarah and Michael Barry, teachers from New Zealand, have three children, Leo (age 5), Timothy (3), and Olivia (1)*. Before coming to China two years ago, they used to work in Africa and South East Asia in international schools. They say it’s their dream job, and that it also pays much better abroad than in their home country. Now Sarah is a stay-at-home mom, and her husband is an educational consultant. His work package provides them with an apartment, health insurance, international school fees, flights back home – and this gives them an opportunity to save around half of their income. All the family has to pay for is their vehicle, phone costs, and household bills, and having the extra income means they are able to also employ a part-time ayi to take care of the house, which they never could afford before. “For us work in China gives an opportunity for me to be with my children and watch them grow, without leaving this in the hands of a nanny,” smiles Sarah. The family likes this lifestyle and doesn’t want to change it anytime soon.

Sarah is looking forward to going back to work as soon as Olivia is old enough to attend school. They will be able to go back to when they were only spending a third of her salary, keeping another third of it for traveling, and saving the final third plus her husband’s entire salary. “We just put the money in a bank, and save it for buying a house back in New Zealand some years later,” Sarah tells us. They usually save money in New Zealand dollars, believing it to be a safer country for investment than China.

On the weekends the family usually goes to parks or on hikes to the Great Wall. Eating out is also an essential part of a weekend. Once or twice a year they go somewhere overseas for vacations, though now with a small baby it has become more complicated.

They try to discuss finances with their kids, as far as they are currently capable of understanding, teaching them to consider the amount of money they can spend on certain things. Sarah has been working since she was 15 years old, but now says her attitude to their own children working for pocket money will depend on which country they live in, as it inappropriate to the Chinese community, for example.

Taken together, all of these accounts illustrate what opportunities life in China gives. A great educational opportunity for children, most of whom grow up speaking more than two languages at a native level; higher salaries, which enables a better lifestyle than back home. Regardless, all interviewed consider life here as a temporary episode, and hope to return home at some point in the future.

*Barry Family names changed on request due to sensitivity of the subject.

This article originally appeared on page 46-48 of the September 2016 Issue of beijingkids magazine. Click here for your free online copy. To find out how you can obtain a hard copy, contact distribution@truerun.com.

Photos: Courtesy of The Balinas and Park-Chua families

The other day, I was on a webinar and the main focus was on the Coalition for Access, Affordability, and Success. Overall there seems to be a lot of confusion about what the Application is, what the Locker is and how things will move forward this coming year. Let’s just be sure of one thing – this is new, and not a lot of people know how the process will unfold exactly.

What we do know is that there are over 90 colleges and universities who will use the Coalition application. Only THREE schools will use it exclusively, at this point. Those schools are University of Washington, University of Maryland, and the University of Florida. Every other school is on a Wait-to-See basis. As mentioned there is a lot that is not known.

So let’s try to separate the different pieces. There are three main aspects of the Coalition For Access website: the Tools, the Locker and the Application. It is important not to confuse each of these items, as they are generally separate pieces to the larger puzzle of assisting students through the maze of the application process. So let’s tackle them one by one.

The Tool section will be comprised of exactly what it says – tools to help students and their families through various aspects of applying to university. Things like Financial Aid calculators, links to Financial Aid and Scholarship providers, links to Community Based Organizations (CBO’s) to assist students who do not have the financial resources for college counselors, information on a wide variety of topics related to applying to schools will all be accessible through this portion of the portal. One thing to remember is that the primary focus, supposedly, is to help underprivileged, first generation students, and provide tools they might not otherwise have access to, so they can go to university.

The Locker is the area where a lot of people seem to have the most confusion. Basically the Locker is a storage space where students can drop items like graded essays, research papers, videos, journals, resumes, awards, certificates and other important documents. Again this is a storage space. No one other than the student can see or access this portion of the portal (unless a student has given access to a mentor/counselor etc…) Colleges and universities will not see this information.

What is the purpose of this storage space? To give a student access to information collected throughout their High School career. It is a way to remember what they did from the beginning to the virtual end of the formative years. More importantly, by being able to collect and preserve that information, the idea of the Locker is to give a student time to reflect on their experiences over those three and a half years. How did they become the person they are today, and what events led to the development of that person?

What is definitely certain is that during the application process all of this material will not be sent to admission offices. Schools, in the application process, will ask for one or two items that they deem are instrumental in their development and show what kind of student/person they are, above and beyond grades, letters of recommendation, and essays. Each school will set their parameters of how many pieces of evidence they want a student to send. Also, I believe students may choose one set of items for one school and a completely different set to another.

The Locker is also where other documents will be stored – transcripts and letters of recommendation from teachers and counselors. These will remain LOCKED and inaccessible to students accept in the sending process of the application. Students will still not be able to see them, but they will link them to their application and be able to send them with their other materials.

This now brings us to the Application portion of the portal. The application will be pretty much the same as any other application. There will be biographical information, educational information i.e. where a student currently attends or has attended school, activities and essays. Really, the actual application process will not be much different than before, other than the fact that a student will now need to decide which application they will use – the Common Application, the Coalition Application, or a school’s own application.

With the exception of the three schools listed at the beginning of this article, there is no advantage in using the Coalition Application. Schools will not give the Coalition Application priority over any other application.  All applications will be viewed as equal.

What advice would I give? I would say for this year, unless you are applying to those three schools, avoid the Coalition Application. First, there is no stated benefit in using their application. Second, there are too many unknowns at this point – whether the technology be able to handle the number of students using that application being one of the major concerns. Any glitches will affect applicants and that adds a level of anxiety to a process already filled with enough anxiety.  Like any new toy or invention it is always a good plan to wait for Version 2.0. There will be lots of improvements to the system as the Coalition works through all the issues of this process.

Finally, for most students here who have College Counselors or consultants, there are still a lot that we do not know about the application (no one has seen it), no one has seen how it will work and overall there is just too much confusion. Go with what you know and wait. There is no reason to be a test subject in something so important as an application, plus there are too many new things to sort through this year – the rSAT, ACT (with its current security issues), and Financial Aid processes to add on more concern. Be safe, choose wisely and by all means, keep it simple.

Photo: Screen shot

It always surprises me how little we are educated about money and finance whilst we are at school, particularly as the need for a solid understanding of these areas is a key life skill. Only in the last 2 years has the UK introduced formal curriculum in this area to help prepare kids for the daunting world of credit cards, loans, mortgages, hire purchase agreements, pensions, and much more.

Most people learn more about money skills from their parents than from any other source. So, your kids will be learning about money from watching and listening to you. It is a good idea to encourage children to save from an early age, so here are some top tips to help them along the way. This is the first part of a two part series, the second looks at older children and finally independence in kids.

Money does not grow on trees
It is important that children have an understanding about the value of money. You can help them achieve this by giving them pocket money when they help around the house. It is also important that they understand that they may need to make choices when they spend their money. Here are 3 top tips for young children:

1.Use Different Envelopes/Jars
You may be familiar with the envelope budgeting system for your own money, but this can also work for children. On either envelopes or jars, have your child draw pictures of what he or she wants. You may also want to help your child understand that some items will take longer than others to save for.

For example, the short-term savings container might have a picture of a specific toy, while the long-term container might have a picture of a trip to Disneyland. Teach your child to set aside money for short-term and long-term goals, and have another container or envelope for spending on everyday items.

2. Match Contributions
However your children get money, from doing chores for an allowance or getting cash for their birthdays, match however much money they put aside.

You can also use physical rewards or treats instead of actual money as a saving incentive. For example, if your child doesn’t spend any money for a certain amount of time, provide a small reward or treat. You can also make the prizes better the longer your child saves. Try stickers, an extra 1/2 hour of video games, toys, or whatever motivates your child.

3.Play Games
Board games such as Monopoly and The Game of Life can teach kids how to spend and earn money, but they don’t do a good job of teaching them to be savers. Instead, try online games such as Save! a free downloadable game from Mass Mutual Financial Group that can teach them how to separate wants from needs when it comes to spending. The game leads players through a 3D fantasy world where they collect virtual money while trying to avoid impulse buys called “iWannas,” more likely known to your children as candy, soda and toys.

Please note that beijingkids does not necessarily endorse the views presented in this article.

About William Frisby
William originally arrived in Beijing as a finance guy on a bicycle and will probably leave as a finance guy on a bicycle. He works for Premium Finance Group (PFG), a financial consultancy that has been established in China for over ten years. PFG offers clients no-nonsense, personalized advice and serves the whole of China from their Beijing and Shanghai offices. Services include international property, investment, insurance and financial planning. To contact William, email william.frisby@premiumfinance-group.com.

Recently I have been asked by a lot of families in Beijing about life insurance. Maybe my article two months ago on wills and trusts got people thinking, or more likely it’s the pollution and crazy Beijing roads.

Regardless of what it is in life which makes people inquire about life insurance, there should be only one key driver….’if I were to die tomorrow what would happen to my family and loved ones.’

Currently I am in the process of helping a client with his life insurance. Things in his life are great, he has just had a little boy and like any new father he is very happy. However, the birth of his son has brought back some painful memories. When he was around ten years old, his father fell ill and tragically died. My client was extremely fortunate that his father had put in place a life insurance policy that allowed him to continue his life as his father would have wanted. It is therefore of no surprise that when he found he was going to be a father his attention quickly turned to protecting his new family. My client is not really in a position where he has that much spare cash to spend on life insurance, particularly with all the costs a newborn can bring. Nevertheless, he wanted to put in place as much protection as he could afford.

I deal with many clients that do and do not have life insurance. For the ones that do not it is the first thing I talk about every time I see them. I believe it’s your duty to have something in place if you have children.

No one wants, or likes, to talk about death and this is understandable. However, that should not make planning for it any less important. One thing we know for sure is that death is inevitable, so we have to think about it at some point.

So how much insurance do you need? Some people I meet have great insurance benefits as part of their job. Others have substantial personal wealth so that they can self-insure through their savings. Unfortunately, the vast majority of people I meet are underinsured. Alarmingly, a lot of people I meet do not have any insurance because they think they can’t afford it. Let’s make one thing clear now; insurance is always affordable when you consider the risk to your family not having it. Insurance that you put in place now could be what allows your family to keep their home or your children to attend college.

I often hear the phrase ‘life insurance is the worst investment you’ll ever make’. People say this because the only way to get a return from it is if you die. While I understand the sentiment of this statement, I do not agree with it. Life insurance is the one best investments you can make with your money. What we must understand about life insurance is that it increases the power of our money. Paying USD 1 for insurance might mean my family will receive USD 1,000 if I die. That’s a 1,000 percent return on my investment; pretty good if you ask me.

What are my options?

Term Insurance – This is very simple, what you do is nominate an amount of money you would like your loved one to receive if you die. How much? At the very least I advise everyone to have insurance that will pay off major debts such as a mortgage. If you are the primary wage earner, I also recommend an amount of money that is capable of generating 75 percent of your income.

Whole of Life or Universal Life – As the name suggests this type insurance covers you for the whole of your life. A key feature of this insurance is that it has a cash value that you can redeem at anytime. You can take a look at quotes for life insurance over 80 and find many exciting life insurance plans. A lot of the people I speak to like this because they can cash the policy in and receive an investment back which can make the insurance very cheap or even free.

Critical Illness – This type of insurance pays a cash amount on the diagnosis of a terminal illness such as cancer. I find it is often overlooked by people as something they do not need. However, the fact is you are 75 percent more likely to die of a terminal illness than natural causes

As a point to close on, I would like to repeat that anyone who has financial dependents has a duty to have some form of protection in place for their loved ones! How much differs for everyone, but trivial matters such as time and cost should never stop you planning.

About William Frisby
William originally arrived in Beijing as a finance guy on a bicycle and will probably leave as a finance guy on a bicycle. He works for Premium Finance Group (PFG), a financial consultancy that has been established in China for over ten years. PFG offers clients no-nonsense, personalized advice and serves the whole of China from their Beijing and Shanghai offices. Services include international property, investment, insurance and financial planning. To contact William, email william.frisby@premiumfinance-group.com.

Photos: stockMonkeys.com (flickr)

So you’ve decided you want to invest in the stock market. The only problem is you haven’t got a clue where to start. The language of investments can seem incredibly confusing and even intimidating and you may feel like there’s just too much to get your head around. But never fear, here’s comes help! We’ve put together a list of ten of the most commonly used terms in the investment industry, all explained in simple, jargon-free English.

Equity
When you buy shares in a company, they become your equity in that company – the portion of the business which is owned by you. This is true however large or small your financial interest. An equity portfolio is when you have a number of shares in different companies.

Bonds
A bond is an investment in which you lend money to an organization such as a business or a government body. This loan is made for a fixed period of time, ranging as widely as 90 days or 30 years, though the average is between three and ten years. The money is lent at an agreed level of interest, giving you security that you will receive a definite return on your investment.

Mutual funds
Also known as unit trusts, mutual funds are investments which are divided into units. These units, which are equivalent to shares, can be bought from and sold back to the manager of the fund. The fund’s value per unit is calculated frequently to monitor its progress. Many countries have favorable tax regimes for mutual funds, as they encourage saving.

Options and futures
An option is a contract which entitles you to buy or sell a predetermined stock or bond during a specific period of time. The price is established before the contract is made. A future is a contract which obligates you to do the same.

Hedge funds
A hedge fund uses futures to offset the risk of investments falling short of expectations. For example, a fund manager concerned about declining stock prices might hedge his or her accounts by committing to sell some separate stocks at a later date. Hedging is used extensively in international funds to minimize the impact of currency fluctuations.
Exchange Traded Fund
An exchange-traded fund (ETF) is similar to a stock on an exchange, with its value fluctuating depending on the market. An ETF might include assets like bonds, commodities and stocks. Indeed, this is one of the main benefits of this type of fund, in that you get a diverse portfolio under a single umbrella.

Bid offer spread
The spread is the difference between the selling price of an investment and its purchase price. For example, if the selling price is USD100 and the purchase price is USD110, the bid offer spread is USD10. The selling price is always less than the purchase price, with brokers keeping the spread as their profit.

Quantitative easing
Many people wrongly believe that quantitative easing (QE) involves the printing of banknotes to try and boost the economy. However, it actually involves central banks buying assets like government bonds with funds created for the purpose. QE is aimed at promoting higher levels of lending and boosting the money supply when interest rates cannot be made lower.

Benchmark index
A benchmark index (BI) is a series of indicators used to evaluate the performance of a fund or investment manager. The most common BI for equity-orientated funds is the S&P 500 or the FTSE-250. Others are the Dow Jones Industrial Average and the Russell 2000.
Inflation
Inflation is an increase in the prices of products and services over time, reflecting the subsequent decrease in the purchasing power of money over the same period. It affects many areas of our lives, including our savings, our pensions and day-to-day costs like food and gasoline.

We hope our plain English guide to these investment terms has been useful. Remember, if you’d like more information about ways to invest your money, don’t hesitate to get in touch with our friendly teams across Asia. For your nearest office, visit www.bluestar-amg.com/contact-us and follow us on Twitter for updates about the world of investments and savings: https://twitter.com/bluestaramg.

Please note that beijingkids does not necessarily endorse the views presented in this article.

Mark Matlaszek has lived in China for over ten years and is the director of BlueStar AMG in Beijing. He has been helping expat families plan for their children’s future education costs for the last decade, as well helping parents plan for their retirement. If you would like a free consultation, contact him directly at mark.matlaszek@bluestar-amg.com.

Photos: Lending money.com, 401kcalculator, seniorliving.org (flickr)

Choices, choices, choices; the 2014-2015 School Choice Guide is out with a wealth of information for new comers and old timers. This guide spotlights 70 Beijing schools from local to international to hybrid.

Schooling options in the capital have increased over the years, of course some schools are packing up and heading off into the sunset whilst others are just setting up shop. The guide provides profiles for the new, the old and the niche schools.

The school listings are not the only reason to pick up your copy of the guide, filled with articles and information about the various curricula available, financial planning, admissions, tackling pollution and extracurricular learning support.

The 2014 beijingkids and JingKids School Choice Fair, sponsored by RGF AIR Purifiers will take place on March 1 and 2 with over 50 exhibitors and 12 sessions of education talks and panel discussions led by educators and parents. Pre-register here (www.beijing-kids.com/scf).

The guide is available in all the usual beijingkids distribution points around town. If you can’t find a print version send an email to distribution@beijing-kids.com. You can read it online here