4 Ways to Teach Kids to Save Their Angpao Money Wisely

4 Ways to Teach Kids to Save Their Angpao Money Wisely

angpaos

Malaysia is known for its diversified cultures and religious festivals. Nevertheless, every festival is unique in its own ways. Chinese New Year is no exception. Best part of the celebration especially for the younger ones (and their parents)? Chinese New Year angpaos!!

 

In addition to the customary practice of distributing red packets (angpaos), it is essential to impart to children the significance of genuine giving and receiving, along with guiding them on ways to manage the money they receive. You can encourage them to allocate their angpao funds into three designated jars: one for spending, another for saving, and a third for charitable giving. An effective distribution could involve placing 70% in the saving jar, allocating 20% to the spending jar, and dedicating 10% to the giving jar.

 

So parents, it’s time to teach them how to manage the money wisely so that they don’t spend it unnecessarily. Here are some of the best ways to guide your children to manage their angpaos well!

 

 

1. Understanding The Needs & Wants

 

When young children like pre-schoolers get their angpaos, they might give back the money to their parents for safekeeping, or some may keep it in their own piggy bank. Whatever they may do, explaining to them the importance of money and its value is essential.

 

This age is optimal for children to grasp the distinction between ‘needs’ and ‘wants’. Parents can guide them in discerning what is necessary to purchase versus what they simply desire. Once they comprehend these differences, managing money wisely will become more straightforward for them.

 

 

2. Shop Sensibly

Should the child want to purchase something she needs, remind them of the value of needs and desires and then give her the freedom to make her choices. It’s a learning opportunity, so it is alright to make mistakes, however parents can always guide them to ensure that they buy items that have value for money.

 

 

3. Reward Saving Habits

 

Encouraging kids to save is even more effective when we celebrate their achievements. If they reach certain savings goals, consider giving them small rewards or matching what they save. This positive feedback helps them feel proud and motivated to keep saving.

 

By turning saving into a fun and rewarding experience, parents not only teach kids the value of money but also show them that saving can be a cool thing to do. It’s like cheering them on for making good money choices, and that makes learning about money more enjoyable for everyone!

 

 

4. Giving Generously

 

It’s beneficial to introduce our children to the idea of giving back from a young age. Kids can make a positive impact by assisting another child in need. Begin with modest contributions, such as donating school uniforms, books, or stationery to children in orphanages or those you are aware of who could use some help. These small acts of kindness can gradually develop into habits that your child might continue as they grow into adults.

 

In conclusion, teaching kids to save their Angpao money wisely is not just about financial education; it’s about instilling values that last a lifetime. As we navigate the vibrant traditions of Chinese New Year and the joy of receiving Angpaos, it becomes an opportune moment for parents to guide their children in the art of responsible money management.

 

As these practices become ingrained in their upbringing, children not only learn to manage their money wisely but also cultivate values of prudence, responsibility, and compassion that will serve them well into adulthood. Here’s wishing all a fantastic Year of the Dragon this 2024. Start saving and stay blessed in abundance of wealth!

 

A full-time MUM turned writer, Rosalind found her passion for writing only after becoming a mother herself. As a mother of two school-going children, she writes about real-life experiences, spending quality time with family and among others - parenting skills that need to be explored!