• Food
  • Family
  • Beauty & Health
  • Style
  • Great Women
  • Events/Win
  • Food
    • Eating Out
    • Cooking Tips
    • Festive Food
    • Asian Recipes
    • Food
    • Celebrity Recipes
    • Dessert Recipes
    • Healthy Recipes
    • Quick & Easy Recipes
    • Western Recipes
  • Family
    • Family
    • Save Money
    • Parenting
    • Sex & Marriage
    • Travel
  • Beauty & Health
    • Beauty & Health
    • Skincare
    • Makeup
    • Hair
    • Awards
    • Diet & Nutrition
    • Fitness
    • Wellness
  • Spa Awards 2022
  • Style
  • Great Women
    • Career
    • Great Women of Our Time
    • Real Life
  • Entertainment
  • EVENTS/WIN
  • #SchoolForLife
  • Hair Awards
  • Great Escape
  • Explore Singapore
  • Also available at:
Privacy Menu
SPH Media

Copyright © 2022 SPH Media Limited. Co. Regn. No. 202120748H. All rights reserved.

  • Food
  • Family
  • Beauty & Health
  • Style
  • Great Women
  • Events/Win

Family

4 Ways To Make Full Use Of Your Kids’ Ang Bao Money

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Family

4 Ways To Make Full Use Of Your Kids’ Ang Bao Money

Your child may just thank you in the future for investing their CNY savings in these areas, for their benefit

February 18, 2021
4 Things To Do To Make Full Use Of Your Kids' Ang Bao Money

Photo: 123RF

After the busyness of Chinese New Year involving visiting, packing ang baos and giving them out, it’s now time to consider what to do with the money your children received. As much as we want to give our children the decision of where the money goes – and it’s hard to shake off the request of a new toy or device – it’s also important to teach them about good financial habits and financial literacy early on.

This CNY, teach your children to be more money savvy, and guide them towards investing their money in areas that will be useful in the long run (or you could just do it for them). From learning coding, to investing at no minimum cost, here’s what you and your kids can do with this year’s CNY savings:

READ NEXT

3 Ways To Teach Your Kid To Be More Money-Savvy

5 Ways To Get Kids To Manage Money Better

10 Money Skills Your Children Must Know

https://www.womensweekly.com.sg/gallery/family/4-ways-to-make-full-use-of-your-kids-ang-bao-money/
4 Ways To Make Full Use Of Your Kids' Ang Bao Money
Enrichment Classes
image

Enrichment classes come with plenty of benefits for your child’s development. From promoting critical thinking and problem solving skills to making learning meaningful for them, the curriculum can enhance your child’s soft and hard skills for his/her future.

Some enrichment programs that you can consider for your child include:

  • Swimming
  • Music
  • Coding lessons
  • Sports classes: karate, gymnastics, fencing
  • The above examples are just a part of a long list of classes that can help in your child’s cognitive development. In fact, some of them such as coding and music lessons might even give your child an early head start in their education.

But bear in mind that we are not referring to excessive enrichment class to make him/her the next Mozart. Be mindful of giving them enough to let them explore a different kind of learning opportunity and experience.

Above all, manage the costs properly so that it does not wipe out your child’s ang bao stash.

Potential Cost: $100 to $1,000++ per year

123RF
Savings Account
image

Remember, your child might be able to earn a monthly five-figure sum in the near future, but if they can’t save up for a rainy day, it will be for naught. Thus, It is important to give them an early start in cultivating a saving habit if you want them to achieve financial freedom.

Consider using the ang bao they receive as an opportunity to inculcate the importance of saving in their mind. Start him/her with a basic savings account to save his/her ang bao money. Make it a point to show your child the balance in his/her saving account as a visual reminder of how far he/she over the years.

From here on, slowly transit your child to start saving their daily allowance. Over time, your child will pick up the habit of saving and be better prepared for his/her financial future.

Potential Cost: Free. It doesn’t cost anything to start a savings account!

123RF
Investment
image

When it comes to investing, the maxim is that you need a sizeable capital and good investment knowledge to come up on top of the investment game. But one key factor that is often overlooked is the essence of time.

The fact is, the longer you stay invested, the more time your money is given to grow. For your child, starting his/her investment journey at a young age gives them a head start on their journey to be a millionaire upon their retirement age of 65.

In fact, if you have $64,350 contributed to their CPF Special Account at birth and leave it to compound at 4-5% for 65 years (i.e. till he/she retires), that sum will compound to $1 million in his/her CPF account.

While few of us will get $64,350 worth of ang bao money (ever), every dollar you can contribute towards investing will create a compounding effect that your child will enjoy in the future.

Teach them the concept of investing a portion of their ang bao money for potential growth. Once they understand the reason behind this, help them invest the agreed sum in a low-risk asset, and update them periodically on how their investment is performing.

Balance this out though, leave a small amount for your child to spend and pamper themselves for Chinese New Year

Potential Cost: $1. There’s really no minimum cost to starting your child’s investment journey.

123RF
Insurance Premium
image

Don’t think that you are investment-savvy enough to do-it-yourself? Perhaps you might want to consider getting some professional help from insurance companies.

Options such as endowment saving plans are loaded with saving elements that can help to grow your child’s ang bao money.

Some endowment plans even come with a clause that lets your child withdraw it only when he/she enters a different life stage (e.g. university graduation, marriage or child birth).

Potential Cost: $100 to $1,000++ per year

SingSaver is a personal finance comparison platform that allows users to easily compare credit cards, personal loans, and insurance for free while helping empower people to lead healthier financial lives through increased financial literacy.

Text: Si Jie Lim/SingSaver

Read Next

6 Money Tips Couples Must Know For A Successful Marriage

"I Hid My Money From My Husband While He Worked Hard"

10 Free Budgeting Apps To Help Manage Your Expenses & Save Money

123RF
  • TAGS:
  • ang bao
  • chinese new year
  • chinese new year 2021
  • financial advice
  • financial tips
  • how to save red packet money
  • investment
  • money
  • money saving
  • money saving tips
  • saving money
  • teach kids to grow their red packet money
SHARE THIS ON

What’s Hot

Family

Why Fann Wong & Christopher Lee Had To C...

Family

12 Family Staycations In Singapore You A...

Family

7 Water Parks And Playgrounds In Singapo...

Family

12 K-Drama Couples Who Got Married In Re...

Family

12 Best Hiking Trails And Nature Parks I...

Family

14 Father's Day Gift Ideas For Every Typ...

Family

Sicilian to Botanical: 7 Themed Afternoo...

Family

Mother's Day Gift Guide: 16 Fab Ideas Fo...

Family

Best Money Changers In Singapore And Tip...

Family

Denise Keller Has Welcomed A Baby Girl

Family

14 Best Indoor Playgrounds In Singapore ...

Family

Great Last Minute Mother's Day Gifts Tha...

Don’t Miss These
  • Awards This Firming Facial Will Turn The Clock Back On Your Skin
  • Awards This Laser Treatment Gives You A Lit-From-Within Glow – #...
  • Awards Get The Body You Have Always Wanted With This Fat Freeze ...
  • Awards Trim And Tone Your Body In No Time With This Body Sculpto...
  • Awards The Anti-Ageing Facial That Protects Your Skin From Digit...
  • Awards This is the perfect escape from urban life to relax, rech...
Editor’s Picks
  • Family Why Fann Wong & Christopher Lee Had To Cut Short Their Maldives Holiday
  • Diet & Nutrition Savour The Deliciousness Of Chocolate While Being Kind To Your Gut
  • Parenting Local Singers Tay Kewei And Alfred Sim Welcome Their Third Child
  • Family 12 Family Staycations In Singapore You And Your Kids Will Love
  • Organising A KonMari Consultant's Hack For Saving Time & Money At Home
  • Family 7 Water Parks And Playgrounds In Singapore To Beat The Heat
  • Family 12 K-Drama Couples Who Got Married In Real Life
  • Save Money Daiso Price Hike: What's Worth Getting?
Don't Miss Out Ever Again!
Tips & tricks to stay sane + win invites to our events!

By signing up, you indicate that you have read and agreed with our Privacy Statement
Footer Menu
  • About Us
  • Contact
  • Conditions of Access
  • PDPA
  • Privacy Policy
?>">
SPH Magazine

Copyright © 2022 SPH Media Limited. Co. Regn. No. 202120748H. All rights reserved.