Lunar New Year is a time for family: celebrating new beginnings and looking forward to the year ahead. If you're a parent, it's also a time for your kids to receive a lot of red packets. It's a sweet start of the year, but you might worry that your child will misspend their red packet money.
We get it. This Lunar New Year, introduce your child to basic money concepts. This way, they'll appreciate this gift long after the decorations are taken down. Here are four reasons why the gift of savings is the perfect blessing this year.
Give pocket money some meaning
This scene might sound very familiar: red packets - opened and unopened - lying about at home and you have no idea how your child has spent the pocket money. Instead, present your child with a kids' savings account, and you'll be introducing them to the concept of budgeting while giving them an incentive to save.
Want to help your child become more independent and give them the satisfaction of buying their own things? Now is the chance. Let them manage their pocket money and find a way to get their next dream toy. Your kids will grow up and their toys will get bigger, too!
Encourage financial independence
Benjamin Franklin once said, "An investment in knowledge pays the best interest". Open a children's savings account for your child this Lunar New Year and you'll help them learn to be financially responsible by giving them ownership of the account.
If they want to have some money on hand? They can save up their hard-earned pocket money and find ways to keep a budget. If they overspend and have nothing left? That's a learning opportunity, too. The earlier they understand the power of savings, the better off they are in the long run.
Make banking fun
Financial literacy takes a lot of time and effort to develop. The earlier we instil its value in our children, the better. With a kids' savings account, they can start learning basic banking concepts like deposits, withdrawals and interest rates. Explore the bonus interest you get from HSBC current step up promotion and see your child's red packet money grow over the next few months.
Besides budgeting, your child can also learn to organise and grow their portfolio. It could be as simple as reviewing monthly statements with them and giving advice on saving habits. You can even make it fun by handing them 'income' for loading the dishwasher, cleaning their room or reading a new book.
Get an early start
Did you know saving early has huge benefits? Say you start saving at 20. Given the same interest rate, your eventual returns will be substantially higher than if you start saving at 40 or even 30. Why not start even earlier? No matter how much or how often you give out pocket money, depositing something now will boost your child's financial liberties in the long run. This is how they can realise the Lunar New Year saying 'attracting wealth and treasure'.
Besides giving red packets, there's also a chance to teach them the difference between saving up their money and investing with it. Also, as you can send and receive money through PayNow with a mobile number linked to a bank account, why not give out red packets this way? Show your child the future of transactions this Lunar New Year.
Now, how to find the right bank account for your child?
To start, understand your responsibility as a guardian. Do you need to maintain a minimum deposit? Is there any specific paperwork you need to fill in? What are the fees and rates of return?
Some accounts may have different levels of access for your child. Choose a suitable account or customise the features depending on how much you want to supervise or manage the account yourself.
We have different services for HSBC Premier, Advance and Personal Integrated Account customers. Visit our branches or speak to our consultants to explore your options.