CNY is just around the corner and here are some ways you can take full advantage of the Ang Bao money your child will receive.

Time flies by, especially after the pandemic year 2020. In less than a month, the eagerly anticipated Chinese New Year (CNY) is just around the corner.

In addition to enjoying New Year’s snacks and being able to meet your relatives, the next big highlight from CNY is the opportunity to get Ang Bao money for your children.

Depending on the size of your family and how generous your relatives are, this year’s Ang Bao money transport could be in the hundreds or even thousands.

Where does most of the Ang Bao money go?

When you or your child receives Ang Bao money, it usually ends up where your child’s interest lies. From their point of view, it is either the next interesting toy or the upcoming play device or game.

While there is nothing wrong with spending it on toys or games, the question is whether your child’s Ang Bao money can be better used to invest in their future, for example.

Essentially, it’s a conscious choice between instant or delayed gratification. And we think that taking this opportunity to teach them financial literacy will help children better.

You can also take an active role in investing your Ang Bao money in areas that will be useful in the long run.

4 things to do with your children’s Ang Bao money

Art Services Possible costs
Enrichment class Improve your child’s cognitive skills. Expose your child to different types of learning $ 100 to $ 1,000 per year
saving account Teach your child the art of saving Free
investment Use the time factor when investing $ 1
Insurance premium Build your child’s next education and marriage fund $ 100 to $ 1,000 per year

1. Enrichment classes

Enrichment courses offer many benefits for your child’s development. From promoting critical thinking and problem-solving skills to making learning meaningful, the curriculum can improve your child’s soft and hard skills for their future.

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

  • swim
  • music
  • Coding lessons
  • Physical education: karate, gymnastics, fencing

The examples above are just part of a long list of classes that can help your child’s cognitive development. In fact, like coding and music lessons, some of them can even give your child an early head start in their education.

But remember that we are not referring to an excessive enrichment class to make him / her the next Mozart. Be sure to give them enough so that they can explore a different type of learning opportunity and experience.

Most importantly, manage costs properly so that your child’s Ang Bao stash is not wiped out.

Potential cost: $ 100 to $ 1,000 per year

2. Savings account

Keep in mind that in the near future, your child may be able to earn a five-figure monthly sum. However, if it can’t save up for a rainy day, it’s for free. Therefore, it is important that you start cultivating a saving habit early if you want them to gain financial freedom.

Consider using the Ang Bao you receive as an opportunity to show the importance of saving in your mind. Start him / her with a simple savings account to save his / her Ang Bao money. Make it a task to show your child the balance on their savings account as a visual reminder of how far they have come over the years.

From here on you should slowly cross your child to save the daily allowance. In time, your child will resume the habit of saving and be better prepared for their financial future.

Possible costs: Free (there is no cost to set up a savings account!)

3. Investment

When it comes to investing, the maxim is that you need considerable capital and good investment knowledge to master the investing game. However, a key factor that is often overlooked is the essence of time.

The fact is, the longer you stay invested, the more time your money has to grow. If your child starts their investment journey at a young age, they will have a head start on becoming a millionaire by the age of 65.

If you deposited $ 64,350 in the CPF Special Account at birth and charged it at 4 to 5 percent for 65 years (ie until he retires), that sum will add up to $ 1 million in his CPF account.

While few of us (ever) get Ang Bao worth $ 64,350, every dollar you can contribute to the investment will create a compound effect that your child will enjoy in the future.

Teach them the concept of investing some of their Ang-Bao money on potential growth. Once they understand why, help them invest the agreed amount in a low-risk asset and keep them updated on the performance of their investment.

However, make up for this, leave a small amount for your child and indulge in pampering for the Chinese New Year

Potential cost: $ 1 (there really is no minimum cost to start your child’s investment trip)

Here are some broker accounts to consider if you want to open an investment account under your name and help your child invest.

4. Insurance premium

Don’t you think you are investing enough to do it yourself? You may want to consider professional help from insurance companies.

Options like foundation savings plans come with storage elements that you can use to grow your child’s Ang-Bao money.

Some endowment plans even include a clause that allows your child to withdraw them only when they enter another phase of life (e.g. graduation, marriage or the birth of a child).

Potential cost: $ 100 to $ 1,000 per year

This article was first published on