Chinese New Year is full of fun, family visits, and of course, red packets. But for many parents in Singapore, a question comes up every year:
What should we do with our children’s ang pao money?
Traditionally, children simply handed their red packets to parents.
It was understood that the money was part of a family cycle of giving, parents also give ang pao to relatives and elders. Kids rarely questioned it, and the focus was on family duty and respect.
Today, even young children, not just teenagers, often ask, “Can I keep this money? Can I choose what to spend?”
Instead of perceiving their reactions as greed, we can leverage on this opportunity as the start of financial learning!
From Family Obligation to Learning Opportunity
In the past, ang pao money taught children about obedience, respect for elders, and collective responsibility. Today, it can teach children about responsibility, decision-making, patience, and even generosity.
Experts recommend using ang pao as a financial learning tool. For instance, parents can divide the money into three simple categories: save, spend, and share. Even young children can practise small decisions, while older children can manage larger portions and make meaningful choices. (Parentology.sg)
Using Ang Pao Money for Long-Term Growth
Many Singapore parents are turning ang pao into more than a festive treat. They are using it as an opportunity to invest and teach financial skills. Some examples include:
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Opening a dedicated savings or investment account for children, where ang pao money grows over time through index funds or ETFs. (Reddit)
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Letting children choose a portion of the money to invest, giving them early exposure to financial planning and compounding growth. (TheAsianParent)
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Saving some ang pao for future goals or big experiences, teaching children delayed gratification and goal-setting.
These strategies show kids that money can work for them, not just disappear into an adult’s wallet.
Spending Wisely: Teaching Balance
Ang pao money can also be used for enrichment and personal growth. Many parents invest in swimming lessons, music classes, or coding courses instead of toys. Others allow children to use a small portion for fun or treats while saving the rest. (Women’s Weekly SG)
This balance teaches children: money has different purposes — personal enjoyment, education, helping others, and long-term savings.
Transparency Builds Trust
Some parents use ang pao money for school fees or household expenses, and that is okay. The key is honesty. Children understand that their money is helping the family or building their future. They also learn that money is a tool, not just cash to spend. (Dollars & Sense)
By explaining decisions, parents show children how to manage money responsibly, instead of treating it as a secret adult-only resource.
Questions Parents Should Ask
This Chinese New Year, parents can ask themselves:
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How can this year’s ang pao help my child learn about saving, spending, and sharing?
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Can part of it be invested or saved for a long-term goal?
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How much should children be allowed to choose themselves?
The answers will vary depending on age, maturity, and family values — but the principle is clear: ang pao money is not just cash. It’s a tool to teach life skills.
Final Thoughts
The way children handle ang pao money has changed across generations. In the past, it taught respect and family duty. Today, it can teach financial literacy, responsibility, and planning.
One day, it won’t be red packets anymore. It will be allowance, income, and savings. The habits children form today, learning to save, spend wisely, invest, and share, will last a lifetime.
Parents, this Chinese New Year, let your child’s ang pao be more than money. Let it be a conversation, a choice, and a lesson.
Hello! I am Daddy Sean
I am one of the editors of KidYouNot Parenting blogs! I have two adorable sons. I’m a nature lover who values wellbeing and mindful parenting. I’m all about creating balance, connection, and joy in family life.
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