Money management during Chinese New Year: Good money habits for children to pick up

The best way for children to learn and practise important money management concepts is through everyday experiences. The Chinese New Year brings good opportunities to learn about money matters since festive shopping, stuffing and opening laisees are all related to money.

With the rise of electronic money, children today are less likely to deal with cash. You may take reference from the tips below to teach your children how to manage their laisee money properly.

For children aged 4 to 6:
Even when your children are young and do not know how to spend money yet, you can help them gain basic understanding of the Hong Kong currency and denominations when stuffing laisees and sorting out the bank notes together.

For children aged 7 to 11:
Explain to children the features of different coins and notes. As they learn to count and calculate the change, they can also learn more about how the local currency has evolved over the years.

For children aged 4 to 6:
Encourage your little ones to put aside some laisee money or pocket money as savings instead of spending it all.

For children aged 7 to 11:
You may encourage your children to divide their money into three categories: saving, donating and spending. Use the Laisee Money Budget Planner to record the laisee money received, and work on the amount for savings before using the rest to buy what they need and support other charitable causes.

For children aged 4 to 6:
Explain to children why they should save for a rainy day with some everyday examples, such as saving up candies for later. You can also give them a piggy bank to keep some of the laisee money or pocket money. From time to time, count the savings together with your children, and see how they have accumulated overtime.

For children aged 7 to 11:
You and your children can set personal saving goals using the IFEC SMART Saving Kit. By encouraging them to achieve these goals, not only will they have a sense of accomplishment, but also develop a good habit of saving before spending. Parents can help by encouraging their children to establish personal savings goals that are SMART:  Specific, Measurable, Achievable, Realistic and Time-related. 

For children aged 4 to 6:
While enjoying the festive delights and snacks, teach your children the difference between “needs” and “wants”. “Needs” are essential things that we cannot live without, such as food and water; “wants” are non-essential items which when missing, will not affect our livelihood, although we may feel a bit unhappy.

For children aged 7 to 11:
Ask your children to decide if an item is a “want” or “need” with some simple examples. For example, if you already have many jackets but want another one with a special cartoon print, is this a “want”; if you do not have a warm jacket or one that fits you, another new jacket will be a “need”.

Teaching children about financial management involves providing practical opportunities while fostering an environment of respect and trust.  Encourage children to create a budget and a shopping list before making purchases, and support their decisions as long as they stay within budget.

For children aged 4 to 6:
Using stories to instil the idea that helping others can bring happiness, and encourage them to donate some laisee money to charities.

For children aged 7 to 11:
You can encourage your children to develop a plan and donate some laisee money to charities of their choice.

Suggested activity:

Counting laisee money together:   
Using Laisee Money Budget Planner to input the total laisee amount, as well as the planned savings and expenses to calculate the balance, and see if the planned expenses can be covered.

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