Some parents may choose to keep the laisee money for their children or may use some of it to pay for extra expenses during the festive season. Understandably, your children may be disappointed to have their laisee money taken away. That is why it is important to explain the reasons behind your decision, and let them understand the family's financial situation.

If the laisee money is kept in a savings account, you can take the opportunity to point out the benefits of saving and compound interest.

By being upfront about money matters and the family’s situation, your children will be able to see the bigger picture and become more sensitive about finances.

Explain the reasons for keeping the laisee money, family’s financial situation, and the benefits of saving, to let your children see the bigger picture and become more sensitive about finances.

Guiding your children to manage laisee money

If and when possible, regardless of the amount, it is a good idea to let your children keep part of the laisee money. This becomes an opportunity to guide your children to split their laisee money into three parts, and put them into the “Save”, “Spend” and “Share” categories.

Savings:
Children need to understand the importance of savings. Encourage them to put aside some of their laisee money for a certain goal. For older children, teach them the benefits of compound interest – growing money over time.
Spending:
After reserving money for essential expenses and savings, the rest of the laisee money can be spent on some light shopping. However, it is still important for your children to understand that pocket money is not for buying anything they desire, but for what is needed. They should also be cautious about spending money on “nice to haves”. Give them the space and confidence to manage their money, and be supportive with their decisions as long as they are within budget.
Giving to others:
Encourage your kids to be sensitive to those less fortunate and donate some of their laisee money to good causes.

To teach your children about money management, they must first be given the chance to practise. This means giving them a certain level of independence, while being able to take a step back, observe and offer guidance when needed. Any inappropriate or careless spending should be reminded, guiding your children to learn from mistakes.

Suggested activity:

Interactive online games: Let’s play fun rituals

Money worksheet: Let’s find the laisee money
Money worksheet: Preparing a delicious Poon Choi
Money worksheet: Buying snacks for Chinese New Year

More:

Celebrating New Year with Children

2 Feb 2021