Chinese New Year is around the corner and your children are probably excited about collecting Ang Baos (Red Packets).
This is also a great opportunity for you to teach your children basic money management.
If you are a parent, here are 3 smart lessons you can teach your children using their Ang Bao money.
1. Teach Them the Concept of Saving
It’s important that your children learn the concept of saving at a young age.
If they are old enough, give them the responsibility of keeping their Ang Baos and not open them until the end of CNY.
After that discuss with them how much they want to spend and save, so they can learn how to budget their money.
A good ratio is to spend 20% on things that your children like and save the remaining 80%.
2. Teach Them How a Savings Account Works
Instead of putting their money into a piggy bank, help them open a personal savings account or joint savings account with a bank.
Since it’s inevitable that they need to open a bank account, so they might as well familiarize themselves with this sooner than later.
3. Teach Them the Concept of Investing
It is important that your childen learn the concept of investing at a young age so that they can grow their money.
You can consider starting an Education Plan for your children which you use the saved portion of your children’s Ang Bao money to pay for part of the premiums, while you fund any outstanding amount. There are few benefits for doing so.
- You help your children strengthen their concept of money management
- You help your children invest in their own Education and Future
- Your children is likely to take their studies more seriously when they know they are actually paying for it
If you need help starting an Education Plan for your Children, feel free to contact your FLA Organization Financial Planner for more information today.
